India agri commodities trade volumes jump by 102.59%

Volume of trade in agri-commodities in India's commodity futures markets from the period April 1, 2009 to January 2010 increased by a whopping 102.59%. Value of trade in agri-commodities for the period 1st April 2001 to 31st January, 2010 was Rs.10,13,379.97 crore, informed Prof. K.V. Thomas, Minister of State for Agriculture in a written reply to a question in the Rajya Sabha, the lower house of Indian Parliament. Growth in volume and value of futures trade was not because of continuous rise in prices but due to participants taking short term position and entering and exiting the market repeatedly to avoid risks, the press release in this regard clarified. At the aggregate level, introduction or reintroduction of new commodities and initiation of new exchanges also added volume to the trade. 100% growth in trade value of agricultural commodities between April 2009 and January 2010 is mainly attributed to restoration of trading in suspended agricultural commodities, like chana, wheat, soyoil, potato and rubber as well as higher volume of trade in guarseed and guargum.
Content extract at india agri Market News nov 23,2010