Indian commodity market seen growing by 30 pct until 2010 - industry body

The Indian commodity market -- which expanded 50 times in the last five years -- is expected to grow steadily at about 30 pct until 2010 and touch a volume of 74.16 trln rupees on continued trader participation, according to joint findings of the Associated Chambers of Commerce and Industry of India (Assocham) and Evalueserve.

The commodities trade grew over 94 pct in 2003, 341 pct in 2004 and 276 pct in 2005. However in 2006 it could register year-on-year growth of 27 pct, and 2007 saw a growth rate of 23 pct, the study revealed.

Noting that commodity future markets are the strength of an agricultural surplus country like India, the report said major problems associated with commodity markets in the country include infrastructure, trading system, broking community, controlled market, integration of regional and national exchanges as also integration of spot and futures markets.

It added that the daily average volume of trade in commodities exchanges by Dec 2007 was over 120 bln rupees.