Monday, August 28 2006 10:23 Hrs (IST) - World Time -

New Delhi: The commodity futures market size is expected to reach more than double by 2010 to Rs 12,00,000 crore and create additional employment avenues for one lakh persons, industry body ASSOCHAM has said.

The Indian commodity futures market is poised to touch more than Rs 12 lakh crore by 2010 as against the current size of Rs 5.5 lakh crore, the chamber said in a release.

Presently, over 70 commodities including gold and silver are traded in three commodity exchangesMCX, NCDEX and NMCE.

"As the lists of items enlarge in future, the size of commodities market will naturally broadbase to even over Rs 12 lakh crore," ASSOCHAM President Anil K Agarwal said.

The industry body will release a report on Opportunities in Booming Commodities Market on August 28 in Kolkata.

The current size is restricted within the range of Rs 5.5 lakh crore with the three exchanges clocking a collective turnover of Rs 15,000 crore per day, ASSOCHAM said.

In the report, ASSOCHAM has favoured many reforms for the commodity futures market, which includes strengthening the Forward Market Commission, the commodity market regulator.

"The Government should allow banks and FIIs to enter the commodity futures with uniform transaction charges for all commodities offered at the futures platform," Agarwal said.

It also favoured allowing commodities trading with global linkages up to midnight for reforming the bourses.

"These two suggested reforms if executed will undoubtedly transform the commodities exchanges as such reforms would not only enhance depth but would also increaase the liquidity in the market," he said.