Turnover to touch Rs 110 lakh cr in FY11: FMC

The turnover of the commodity exchange is expected to touch Rs 110 lakh crore in FY11, a top regulatory authority official said here.

“The turnover of commodity exchanges is expected to be around Rs 110 lakh crore during April 2010-March 2011 period as compared to Rs 77.5 lakh crore registered in the previous year," Forward Markets Commission (FMC), Chairman B C Khatua said.

Indian commodity bourses' turnover rose 53.4 per cent on year to Rs 72 lakh crore in the first eight months to November. Bullion trade rose by 79.78 per cent in value terms to Rs 32 lakh crore, and metals futures trade rose 66.56 percent to Rs 17 lakh crore Apr-Nov, while volumes in agri commodities rose by a little over 9 per cent.

“The growth in agri sector remained slow this year as compared to last year, when we saw significant growth," Khatua said.

However, trading in gold and other bullion products, which were subdued last year, have become active due to high volatility. Asked on sugar contracts, Khatua said that the regulator have called the meeting with exchange participants this week and contracts will be launched shortly for January month.

“The sugar contracts are ready. We have called a meeting to decide on contracts and the January sugar contracts will be launched soon," he said. Replying to a query on status of iron ore contract futures by ICEX, Khatua said the contract is ready except that the spot prices for the contract has not been firmed up by the exchange. “We have asked the ICEX to provide us with spot price. Once that comes, we will allow the contracts. Because you can't create reference price in spot market," Khatua said.