Turnover on commodity exchanges in India, the top gold user and the second-largest wheat and rice grower, surged 55 percent after bullion reached a record and prices of farm goods climbed, the market regulator said.
The value of goods traded on the Multi Commodity Exchange of India Ltd., the nation’s biggest, and 20 others jumped to 67.1 trillion rupees ($1.47 trillion) between April 1 and Nov. 15 from 43.2 trillion rupees a year earlier, the Forward Markets Commission said on its website today.
Commodities have jumped this year on increased demand as the U.S. emerged from recession and China, the world’s largest metals user, led economic growth in Asia. Gold, which reached a record $1,424.60 an ounce on Nov. 9, has gained 25 percent this year, while silver has jumped 63 percent.
Gold and silver worth 30.1 trillion rupees were traded on Indian bourses this financial year, 85 percent more than a year earlier, the commission said. Turnover of base metals including copper and zinc jumped 66 percent to 16 trillion rupees, it said. Trading in wheat, soybean and other agricultural commodities rose 12 percent to 7.71 trillion rupees in the year starting April 1, the regulator said.
Copper, used in pipes and wires, reached an all-time high in London this month. Grains and soybeans have rallied on higher demand, trade curbs and poor harvests.
The trading value of commodities on Indian exchanges may exceed 100 trillion rupees in the year to March 31, from 77.65 trillion rupees a year ago, B.C. Khatua, chairman of the commission said in August. Turnover on Indian commodity bourses has surged 120 times after electronic trading was introduced in 2003, according to the regulator.
Domestic traders, producers and consuming companies are the main participants in India’s 22 commodity exchanges. Overseas investors aren’t allowed to buy and sell commodity futures.
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