Following demand from participants, the Forward Markets Commission (FMC) has allowed commodity exchanges to remain open on Saturday, 28 February — the day the Union Budget will be presented in Parliament. Usually, commodity exchanges remain closed on Saturdays. The commodities market regulator has asked national commodities exchanges to keep the market open between 10 am and 5 pm on 28 February. Read our full coverage on Union Budget Commodity Participants Association and BSE Brokers’ Forum had urged the FMC to keep the market open on the Budget day. For commodities that are widely traded such as metals, bullion, crude oil and energy products, the Union Budget doesn’t have huge impacts as prices of these commodities are based on international prices. However, in this Budget, there is strong expectation of a cut in import duty by at least two percentage points.
The current duty is 10 per cent. Gold prices in April futures have discounted the duty cut, trading lower.
Another expectation is of relief in commodities transaction tax. Even the regulator had earlier proposed to the ministry of finance to roll back or reduce CTT which had resulted in sharp fall in volumes of commodity exchanges. Traders believe any change on these front especially cut in import duty or even of there is no cut it will have an impact on gold prices.