We all are versed with how brilliant our Indian civilizations have been, not to doubt the history of the commodity market in India dates back to 4th century BC in Arthashastra during the Maurya dynasty. The verse then were not much defined or crude as how the modern commodity markets are, however the first formal markets were set up after the English East India company’s Bombay Cotton Trade Association around 1800’s which inaugurated the modern and well defined market commodity trading in India.
The commodities markets expanded during the colonial era, leading to the founding of numerous exchanges like the East India Jute Association in 1927 and the Calcutta Hessian Exchange in 1919. The trade of jute, cotton, and other agricultural products was made easier by these exchanges. But the commodity markets had serious difficulties after independence. By the 1960s, many exchanges had declined as a result of numerous controls and restrictions put in place by the new Indian Government.
The commodity markets saw a resurgence during the 1990s economic liberalization of India. With the founding of the Multi Commodity Exchange (MCX) and the National Commodity and Derivatives Exchange (NCDEX) in 2003, India’s present-day commodity trading entered a new phase. By introducing computerized trading platforms, these exchanges improved accessibility, efficacy, and visibility.
The Forward Markets Commission (FMC), which was in charge of regulating the markets until 2015 combined its working with those of the Securities and Exchange Board of India (SEBI), stands as an another example of how regulation changed progressively. By merging, the commodity markets were to become more stable and develop while also seeing less regulation. Minerals, energy, and agricultural commodities are among the many goods traded in India’s commodity markets today.
