Commodities exchange

A commodities exchange is an exchange where various commodities and derivatives products

are traded. Most commodity markets across the world trade in agricultural products and
other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork
bellies, oil, metals, etc.) and contracts based on them.

These contracts can include spot prices, forwards, futures and options on futures. Other
sophisticated products may include interest rates, environmental instruments, swaps, or
ocean freight contracts.

Commodities exchanges usually trade futures contracts on commodities, such as trading

contracts to receive something, say corn, in a certain month.

EXAMPLE

A farmer raising corn can sell a future contract on his corn, which will not be harvested for
several months, and guarantee the price he will be paid when he delivers; a breakfast cereal
producer buys the contract now and guarantees the price will not go up when it is delivered.
This protects the farmer from price drops and the buyer from price rises.

National Commodity and Derivatives

NCDEX India Deals in All
Exchange

Precious Metals, Metals, Energy,

Multi Commodity Exchange MCX India
Agricultural Products

ROLE

Commodity exchange in india plays an important role where the prices of any commodity are
not fixed, in an organised way. Earlier only the buyer of produce and its seller in the market
judged upon the prices. Others never had a say. Today, commodity exchanges are purely
speculative in nature. Before discovering the price, they reach to the producers, end-users, and
even the retail investors, at a grassroots level. It brings a price transparency and risk
management in the vital market.
TRANSPORTATION AND WAREHOUSING

The transportation and warehousing sector includes industries providing

transportation of passengers and cargo, warehousing and storage for goods,
scenic and sightseeing transportation, and support activities related to
modes of transportation. Establishments in these industries use
transportation equipment or transportation related facilities as a productive
asset. The type of equipment depends on the mode of transportation. The
modes of transportation are air, rail, water, road, and pipeline.

INDIA IMPORTS :

The products of worth $253.9 billion were imported to India in 2009, showing
a drop from the figure recorded in 2008. India imported 10.8 percent of its
total imports from China, 6.9 percent from Saudi Arabia, 6.7 percent from
the United States and 6.7 percent from the UAE.

Civilian aircrafts and their parts from the USA are the main items of
import to India.

Chemical fertilizers, telecommunication equipment, industrial engines,

plastic materials and steelmaking materials too contribute significantly
towards the imported items.

Oilseeds, passenger car bodies, commercial vessels, fruits and frozen juices
and audio and visual tapes are the fats growing import items.

The trade deficit of $121.4 billion was recorded by India in 2008. There was
an improvement in 2009, as the country’s trade deficit stood up at $88.9
billion, showing an improvement of 26.8 percent. All these statistics give
hints of improving export import scenario in India.