Commodities Trading in India : List of Commodities Available for Trading in India : Commodity Exchanges In India

Commodities trading in India has gained immense popularity among traders and investors. The Indian commodities market is well-regulated and provides ample opportunities to trade in a variety of commodities. The trading is primarily facilitated through exchanges like Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX). 

Categories of Commodities in India

Commodities available for trading in India are broadly classified into four categories:

1. Agricultural Commodities

2. Metals

3. Energy Commodities

4. Bullion

Let’s discuss each category in detail.

1. Agricultural Commodities

Agriculture plays a vital role in India’s economy, making agricultural commodities one of the most actively traded assets. Some popular agricultural commodities include:

• Soybean

• Mustard Seed

• Chana (Chickpeas)

• Turmeric

• Jeera (Cumin Seeds)

• Coriander

• Castor Seed

• Guar Seed

• Sugar

• Cotton

These commodities are largely traded on NCDEX, and their prices fluctuate based on supply, demand, and monsoon conditions.

2. Metals

Metals form an essential part of industrial and manufacturing sectors, and they are actively traded on MCX. The key metal commodities include:

• Copper

• Aluminium

• Zinc

• Lead

• Nickel

• Steel

Metals are influenced by global demand, industrial production, and economic conditions.

3. Energy Commodities

Energy commodities are crucial for industries and households alike. These commodities are highly volatile due to their dependency on geopolitical factors, crude oil supply, and global energy demand. The primary energy commodities traded in India include:

• Crude Oil

• Natural Gas

• Petrol and Diesel (through futures contracts)

MCX is the primary exchange where energy commodities are actively traded.

4. Bullion (Precious Metals)

Bullion trading is a preferred choice for investors looking for safe-haven assets. Precious metals like gold and silver are widely traded in India. The key bullion commodities include:

• Gold

• Silver

• Gold Mini

• Silver Mini

Gold and silver prices are influenced by inflation, central bank policies, and global economic uncertainty.

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Major Commodity Exchanges in India

India has several well-established commodity exchanges that facilitate trading in different types of commodities. The major commodity exchanges in India include:

1. Multi Commodity Exchange of India (MCX) – One of the largest commodity exchanges in India, primarily dealing in metals, energy, and bullion.

2. National Commodity and Derivatives Exchange (NCDEX) – A leading exchange for agricultural commodities like soybean, mustard seed, and jeera.

3. Indian Commodity Exchange (ICEX) – Specialises in diamond futures and other commodities.

4. National Multi Commodity Exchange (NMCE) – Deals in various agricultural and non-agricultural commodities.

5. BSE Commodity Derivatives Segment – Offers trading in commodities under the Bombay Stock Exchange (BSE).

6. NSE Commodity Derivatives Segment – Provides commodity trading under the National Stock Exchange (NSE).