The size of the commodity market in India is large enough. The commodity related and dependent industries contribute 58 percent of country's total GDP. The annual turnover from all the commodities comes out to be around Rs. 1,40,000 crore. The share of the commodities is expected to undergo a phenomenal increase with the introduction of commodities futures trading. With three multi-commodity exchanges effective in India presently, retail investors can now have the opportunity to trade in commodity futures markets despite having physical stocks. With these Indian commodity market is now opening up a new boulevard to the arbitragers, speculators and investors.

Wholesale Price Index

The Wholesale Price Index (WPI) has been the most commonly accepted price index in India. It signals the ups and downs of the commodity prices, in all trades and transactions taking place across the country. The updated WPI is available in every week, with the time lag between two weeks being reduced to the minimum possible level. It catches the price movements in an extensive manner. For all these qualities, it is the most prevalent price index in India. It is also viewed as an indicator of the inflation rate of our economy.

Commodity Export Scenario

India masters the global castor oil trade with its castor seed and oil products. The yearly export of commercial castor oil from India turns out to be around 2-2.4 lakh tons. India is regarded as the fifth largest producer of aluminum in the globe. Indian aluminum has huge export potential as its production far exceeds its domestic demand.

The export market for Indian organic agricultural products is expanding rapidly. India's organic tea is world famous for its taste and flavor. Tea, coffee, spices, rice, wheat, pulses, oil seeds, fruits & vegetables, cashew nut, cotton, herbal products are the major organic products being exported from India.

So commodity market in India is growing rapidly with huge export potential. Though it is temporarily lagging behind the service sector in the export field, but it is sure to come up within few years.