Commexes' turnover down 30% in Apr-Oct due to CTT

The turnover of the commodity exchanges fell by 30% to Rs 71,60,162.84 crore in the first seven months of this fiscal due to sharp fall in trading volumes in most commodities, according to the Forward Markets Commission (FMC).

 

The business at these bourses stood at Rs 101,55,637 crore in the same period last year, the commodity markets regulator FMC said in its latest report.

 

The futures trading volumes on most commodity bourses took a beating after the imposition of commodity transaction tax (CTT) of 0.01% since July 1 on non-agri commodities and processed foods, analysts said.

 

Besides, the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), promoted by Financial Technologies India Ltd (FTIL), also dented investors' confidence on the commodity futures trading platform, they added.

 

Consequently, trading volumes at Multi Commodity Exchange (MCX), also promoted by FTIL, were affected. MCX holds a majority of market share in the Indian commodity futures trading business, they added.

     

According to the FMC data, the turnover from farm items fell by 36% to Rs 8,82,208.70 crore in the April-October period of this fiscal, from Rs 13,81,549.95 crore in the same period last year.

     

Similarly, the turnover from gold and silver trading declined by 31% to Rs 32,17,715.34 crore from Rs 46,48,533.64 crore, while the business from metals too dropped by 30% to Rs 13,11,921 crore from Rs 18,73,645 crore in the review period.

     

Also, the turnover from energy items like crude oil fell by over 22% to Rs 17,48,317 crore in the first seven months of this fiscal from Rs 22,51,906 crore in the year-ago period.

 

MCX, NCDEX, NMCE, ACE, ICEX and UCX are the six national commodity bourses operating in the country. There are 11 exchanges that offer futures trading in commodities at regional level.