The turnover of the commodity exchanges fell by 40.51 per cent to Rs 101.41 lakh crore in 2013-14 from Rs 170.46 lakh crore in FY’13, according to the data from various exchange websites.
The commexes turnover slipped by 40.51 per cent at Rs 101.41 crore due to imposition of commodity transaction tax, sluggish participation in futures trade and poor markets sentiment due to NSEL scam during FY’14.
There are 17 commodity exchanges in the country, including MCX, NCDEX and NMCE, offering futures trading.
MCX remained the leading player with a turnover of Rs 86.58 lakh crore having 85.38 per cent of market share, followed by NCDEX having turnover of Rs 11.44 lakh crore and NMCE Rs 1.52 lakh crore in FY 14, it said.
The cumulative value of commodity bourses stood at Rs 95.13 lakh crore during April 13 to February 2014 and Rs 6.27 lakh crore in March 14, the data revealed.
The cumulative turnover of commexes from bullion futures trade fell to Rs 43.08 lakh crore in FY’14 from Rs 78.62 lakh crore in FY’13.
The major fall in bullion futures was because of high price volatility that prompted investors to stay away from the markets, experts said.The turnover of metals other than bullion stood at Rs 17.60 lakh crore in FY14.
MCX remained leading bullion futures player with 99.46 per cent market share with a turnover of Rs 42.85 lakh crore. The exchange also remained leader in metal trade with 98.66 per cent market share having a turnover of Rs 17.37 lakh crore in FY’14, as per the data.
The commodity market started seven years ago. However, commexes witnessed declining trend in the last three years. In this period, the turnover of the commodity exchanges slipped from Rs 181.26 lakh crore in 2011-12 to Rs 170.46 lakh crore in 2012-13 to Rs 101.41 lakh crore in 2013-14, the data said.
To boost trading volumes, regulator FMC gave freedom to national-level bourses to charge different transaction fee. It has also allowed them to levy different transaction fee based on delivery and non-delivery based contracts.
The trade volumes on bourses have been hit after the imposition of commodity transaction tax. Besides, investors are trading cautiously after the Rs 5,500 crore payment crisis came to light at the National Spot Exchange Ltd (NSEL) few months ago.