InvestorQ : Are volumes on agri commodities at the same level as gold and base metals?
Neelam Naik made post

Are volumes on agri commodities at the same level as gold and base metals?

Answer
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krithika Saxena answered.
2 years ago


When it comes to futures on agricultural commodities, the volumes are much lower compared to precious metals and crude oil. Most of the agricultural commodities are restricted from trading on the commodity exchanges by the government. For example, cereals are not restricted to be traded on the commodity exchange futures since they are items of mass consumption and hence price is a sensitive issue. Similarly, pulses including most of the dals are also restricted from being traded in the commodity futures market as they are again very price sensitive products. The SEBI currently permits futures trading on certain specific spices and a handful of cash crops.