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Exchanges report 38% decline in daily average commodity volumes in May

Lockdown, negative price fiasco at MCX among slew factors cited as reasons for decline

MCX
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One of the reasons for lower volumes could be the reduction in trading time

Dilip Kumar Jha Mumbai
Indian exchanges have reported 38 per cent decline in commodity derivatives business since the Covid-19 pandemic started spreading across the country. 

Between February and May, the daily average turnover in commodity futures trading slumped by 38%.

India’s largest commodity exchange, the Multi Commodity Exchange of India (MCX), reported its daily average turnover (DAT) at Rs 15,658 crore in April 2020, the lowest since 2013. One reason is that after negative price settlement in crude oil futures in April, many brokers discontinued trading in crude oil while other increased margins. 

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First Published: May 27 2020 | 7:32 PM IST

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