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KOLKATA, Jan. 7

THE total volume and value of the country's futures markets in commodities during 2001-2002 are showing stagnant growth if not an altogether negative one, according to indications available with the Forward Markets Commission (FMC).

Mr Anupam Mishra, Deputy Director of FMC, told Business Line over phone from Mumbai that, even though the final figures would be compiled after the close of the current fiscal, the indications were that the total business (in value and volume terms) of traded items in futures will remain around the level achieved in 2000-2001.

Mr Mishra said the performance at 19 active commodity bourses in the country varied. ``Certain exchanges and some items recorded a declining trend, both in respect of prices and volumes. However, these have been evened out by the growth in a few," Mr Mishra added.

According to Mr Kewal Ram, a member of FMC, the declines were indicative of a continuing slowdown in demand. ``On the whole, the current fiscal has so far been marked by a low or negative growth", Mr Ram explained. Many of the market reform exercises were put on hold because of the generally depressed market.

The lone international futures on pepper and domestic coffee exchange remained largely dull. ``Permission for dollar-denominated trade to the international pepper exchange failed to prop up its volume because global trade in pepper is going through a rough patch. Lack of marketing of the exchange among the major global players has also been a factor which has affected volumes on the exchange," Mr Ram pointed out.

The National Board of Trade Ltd (NBT) of Indore, which was launched in 1999-2000, contributed greatly to the increase in volumes in the futures market.

NBT, which runs contracts for rapeseed, mustard as also soyabean and their derivatives (oilseeds, oil and oil cake/meal), recorded a turnover of Rs 7,856 crore in 2000-2001 as against little over Rs 200 crore in the previous year.

During the current year also NBT is expected to remain at the top of the turnover list, way ahead of other bourses. The Ahmedabad Commodities Exchange, which deals in castorseed and cottonseed, had been placed in the second slot in terms of turnover with total business worth Rs 3,469 crore in 2000-2001.

The other major bourses on the turnover chart in 2000-2001 were India Pepper and Spice Trade Association of Kochi (Rs 2,580 crore), Vijay Beopar Chamber Ltd of Muzaffarnagar (Rs 2,876 crore), Chamber of Commerce of Hapur (Rs 2,555 crore), Bhatinda Om and Oil Exchange Ltd (Rs 2,600 crore), The Rajkot Seeds Oil and Bullion Merchant Association (Rs 2,761 crore) and The East India Jute and Hessian Exchange of Kolkata (Rs 1,703 crore).

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