Prepared By: VIJAY KUMAR TRIPATHI(084) SHUSHALENDR YADAV(072)

About Commodity Market

Commodity markets are markets where raw or primary

products are exchanged. These products are bought & sold in standardized contracts. The size of this market in INDIA is about 58% of total countrys GDP. Two types of commodities: a) HARD commodities b) SOFT commodities

Year by Year Market Growth

60

Turnover(Rs. In Lakh corer)

50

40

30 Turnover(Rs. In Lakh corer) 20

10

0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

List Of Players
NSEL

(National Spot Exchange Limited) ICEL (Indian Commodity Exchange Limited) MCX (Multi Commodity Exchange) NCDEX (National Commodity & Derivatives Exchange Limited) NMCE (National Multi Commodity Exchange) NBOT (National Board Of Trade)

Major Players Of Indian Market

MCX (Multi Commodity Exchange) NCDEX (NationalCommodityDerivatives Exchange Limited) NMCE (National Multi Commodity

Exchange)

NBOT (National Board Of Trade)

MCX Multi Commodity Exchange

MCX India Ltd. is a state-of-the-art electronic

commodity features exchange. It offers trading of precious metals, agricultural products, metals & energy. MCX is top in the exchange related to gold & silver and 2nd in natural gases across the world. It holds the 85% market share of overall commodity market of India.

ANNUAL TURNOVER GRAPH OF( MCX )

Turn 0ver (Rs. in lakh corer)
60 50 40

30
20 10 0 Turn 0ver (Rs. in lakh crore)

NCDEX
(National CommodityDerivatives Exchange Ltd.)
NCDEX is regulated by Forward Market Commission

which is subjected to various laws, acts & legislations. CRISAL,IFFCO,LIC,NABARD,NSE,PNB,ICICI, Jaypee group are the major share holders. Energy, Industrial Metals, Rubber, Precious Metals, Agri-Commodities. It facilitates trading in 45 commodities.

ANNUAL TURNOVER GRAPH OF (NCDEX)

Turnover (Rs .in lakh corer)
12 10 8 6 4 2 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Turnover (Rs .in lakh corer)

NMCE
(National Multi Commodity Exchange)
NMCE is the first online, demutualised, multi-

commodity exchange of country. It offers trading in plantation, spices, food grains, non-ferrous metals ,oil seeds. NMCE was established in 1953 under the ministry of consumer affairs and public distributions.

ANNUAL TURNOVER GRAPH OF (NMCE)

Turnover (Rs.in lakh corer)
2.5

2
1.5 1 Turnover (Rs.in lakh corer)

0.5
0

NBOT (National Board Of Trade)

NBOT is one of the fastest growing commodity

exchange established in 1999. Offers services in agriculture, plastics, energy. NBOT is also regulated by Forward Market Commission.

ANNUAL TURNOVER OF (NBOT)

Turnover (Rs.in lakh corer)
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Turnover (Rs.in lakh corer)

MARKET SHARES OF EACH INDIVISUAL COMPANY

NMCE 3% NBOT 1% NCDEX 20% OTHER 2%

MCX 74%

Analysis of Indian Market

The commodity market in India is categorised in

oligopolistic market. The commodities deals with almost same type of products & services which are homogenous products. As the product is homogenous we can term the market as Pure Oligopoly.

Characteristics Of OLIGOPOLY
Characteristics of OLIGOPOLY are: Few Large Sellers. Interdependence. Economies Of scale. Relatively high entry barrier. Homogeneous or differentiated product. Price maker ,but still mutually interdependent.

Commodity Market Being An Oligopoly

Few Sellers:- There are few service providers in the market who deals with customers. In India there are only 4 major players in the Indian Commodity market. 2. Interdependence:- Each commodity in Indian Commodity Market is free to take their own decision because in this their price or their product decide the fortune of the rivals or their competitors.
1.

Commodity Market Being An Oligopoly

3. Group Behaviour:- Members of the group may agree to form combination to promote their common interest. 4. Selling Cost:- the purpose of this is to gain greater share of market to maximize profit.so,various firms incur enough expenditure on promotion.

THANK YOU