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Prepared By:

VIJAY KUMAR TRIPATHI(084)

SHUSHALENDR YADAV(072)

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About Commodity Market Commodity markets are markets where raw or primary

products are exchanged.

These products are bought & sold in standardizedcontracts.

The size of this market in INDIA is about 58% of totalcountrys GDP.

Two types of commodities:a) HARD commodities

b) SOFT commodities

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Year by Year Market Growth

0

10

20

30

40

50

60

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

Turnover(Rs. In Lakh corer)

Turnover(Rs. In Lakhcorer)

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List Of Players NSEL (National Spot Exchange Limited)

ICEL (Indian Commodity Exchange Limited)

MCX (Multi Commodity Exchange)

NCDEX (National Commodity & DerivativesExchange Limited)

NMCE (National Multi Commodity Exchange) NBOT (National Board Of Trade)

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Major Players Of Indian Market MCX (Multi Commodity Exchange)

NCDEX(NationalCommodityDerivativesExchange Limited)

NMCE (National Multi Commodity

Exchange)NBOT (National Board Of Trade)

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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 commoditymarket of India.

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ANNUAL TURNOVER GRAPH OF( MCX )

0

10

20

30

40

50

60

Turn 0ver (Rs. in lakh corer)

Turn 0ver (Rs. in lakhcrore)

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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.

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ANNUAL TURNOVER GRAPH OF (NCDEX)

0

2

4

6

8

10

12

2004-052005-062006-072007-082008-09 2009-10 2010-11

Turnover (Rs .in lakh corer)

Turnover (Rs .in lakhcorer)

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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 ofconsumer affairs and public distributions.

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ANNUAL TURNOVER GRAPH OF (NMCE)

0

0.5

1

1.5

2

2.5

Turnover (Rs.in lakh corer)

Turnover (Rs.in lakh corer)

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NBOT

(National Board Of Trade)

NBOT is one of the fastest growing commodityexchange established in 1999.

Offers services in agriculture, plastics, energy.

NBOT is also regulated by Forward Market

Commission.

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ANNUAL TURNOVER OF (NBOT)

0

0.10.2

0.3

0.4

0.5

0.6

0.7

Turnover (Rs.in lakh corer)

Turnover (Rs.in lakhcorer)

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MARKET SHARES OF EACH INDIVISUAL COMPANY

MCX74%

NCDEX

20%

NMCE3%

NBOT1%

OTHER2%

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Analysis of Indian Market The commodity market in India is categorised in

oligopolistic market.

The commodities deals with almost same type ofproducts & services which are homogenous products.

As the product is homogenous we can term themarket as Pure Oligopoly.

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Characteristics Of OLIGOPOLYCharacteristics of OLIGOPOLY are:-

Few Large Sellers.

Interdependence.

Economies Of scale.

Relatively high entry barrier.

Homogeneous or differentiated product.Price maker ,but still mutually interdependent.

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Commodity Market Being An

Oligopoly1. Few Sellers:- There are few service providers in the

market who deals with customers. In India there areonly 4 major players in the Indian Commoditymarket.

2. Interdependence:- Each commodity in IndianCommodity Market is free to take their own decisionbecause in this their price or their product decide thefortune of the rivals or their competitors.

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Commodity Market Being An

Oligopoly3. Group Behaviour:- Members of the group may agree to

form combination to promote their commoninterest.

4. Selling Cost:- the purpose of this is to gain greatershare of market to maximize profit.so,various firmsincur enough expenditure on promotion.

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