The most essential factor of the financial markets of any country is its commodity market Metals, base metals, crude oil energy, and soft commodities like palm oil, coffee, etc., are traded in the market.

It is necessary to create an active and energetic market. This would help investors to cover their commodity risk take speculations and to profit from unequal prices.

The agricultural sector grants maximum growth towards GDP in India. India has more possibilities to become a major center for the trading of more commodities.

However, there is the intervention of government in the agricultural market in maintaining buffer stock in fixing the prices and by way of imposing restrictions on Expert and import of the commodities.

There is a desperate need for a developed commodity derivative market in India to safeguard the farmers by fixing fair prices and maintain buffer stocks.

The present study analyses the growth and challenges of the commodity market in India.