Turnover of commodity exchanges (commexes) in the country fell sharply by 63% in the first fortnight of September to over Rs 3.31 lakh crore, mainly due to imposition of additional margins imposed by the FMC.
According to data released by the Forward Markets Commission (FMC), the turnover of the commexes in corresponding period last year was over Rs 8.90 lakh crore.
Similarly total value of trade also decreased by 22% at Rs 62.29 lakh crore during September 1-15, as against Rs 80.30 lakh crore in the same period last year.
"Volumes of trade have fallen drastically after imposition of additional margins on base metals and guar seeds. Prior to this market sentiments were already under pressure after imposition of commodities transaction tax (CTT)," Religare Securities Metals Research Associate Vice President Sugandha Sachdeva said.
Amid volatility in the markets, commodity market regulator FMC had imposed an additional margin of 5% in all the base metals contracts and 10% special margin on long side of all the contracts of guar seeds and gum, in the first week of this month.
Traders and markets experts have also attributed the current fall in turnover of comexes to crisis at NSEL, which they believe has shaken the confidence of investors in the commodity trading.
