INDIAN AGRICULTURAL COMMODITY FUTURES MARKET: REGULATORY AND POLICY FRAMEWORK

Commodity futures market, in India, which started working way back in 1875, provides a platform for various stakeholders of commodity to hedge their price risk. However, it was assessed that the market would promote speculation which in turn would prove detrimental for the pricing of the agricultural commodities. However, since 2002, the market gained momentum in number of exchanges; commodities and value of contracts. The futures market or contracts, dealing in recognised commodity exchanges, are standardised in nature. The proposed study attempts to examine the current situation of agricultural commodity futures market in India in terms of its regulatory policy. Besides, the paper also evaluates the mechanism of current trading status and regulatory framework of commodity futures contract in India