The and Delhi respectively . After independence ,

TheCommodity derivatives market in India is one of the oldest forms offinancial trading he forward trading in commodities existed in Indiafrom historical times whereas the first modern futures market wasonly established in 1875 ,which started trading with cotton as itscontract by the Bombay Cotton Trade Association . Due to thewidespread dispute among the leading cotton mill owners and merchantsover the functioning of the Bombay Cotton Trade Association. Theassociation was constituted as Bombay Cotton Exchange Ltd over aperiod of time .Later in early1900’s certain number of futures commodity were added to the exchangesuch as oil seeds, ground nut, castor seed and cotton seeds etc .Also introduction of Wheat was also started in 1913, which led to theconstitution of the First Futures Exchange for Bullion Futures inMumbai with various other exchanges that were set up in Calcutta,Rajkot , Kanpur , Jamnagar and Delhi respectively . After independence ,Many policies and regulation undertaken had adverse effect over theagricultural commodity trading which required a committee headed by AD Shroff in 1950 to initiate the Forward Contract bill in theParliament, under the regulation of Ministry of Consumer Affairs andPublic Distribution.

Which the ForwardMarket Commission became the regulator and controller for the tradingactivities of forward and option contracts all over India. Which wasfunctioning well in the market until 1966, As new regulations wereimplemented they had a huge impact which led to the banning of theForward Trading for several years . Subsequently, theliberalization of the Indian economy in 1991 under the Guidance of DrManmohan Singh ( Financial minister during 1991) provided ease incommodity trading.

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Later on the Government had setup a new committeeknown as the under the chairmanship of Prof. K. N. Kabra in1993, the committee recommended to start the futures trading inagriculture commodities like basmati rice, cotton seed, oil seeds,etc.Further in 1996, theWorld Bank in association with United Nations Conference on Trade andDevelopment (UNTCAD) conducted a study and found that there istremendous scope in revitalizing futures trading. In 2000, NationalAgricultural policy envisioned the reforms in agriculturalcommodities trading, that has brought a new wave in trading ofcommodity futures and paved the path for hedging and risk managementby removal of control and regulation in agricultural market.

Change s with sebiand other kkddmd as regulator The Indiangovernment has been focusing on the developmental activities of theAgricultural Sector in order to tackle the issues such asunconditional climate changes,Shift in demand and supply , Naturaldisasters etc are the current issues faced by Agro based industriesand producers (farmers). So Currently theGovernment of India has establishing various Financial Institutionsand Commodity Exchanges that Trade and provide services on suchcommodities which totally comprises of 21 Commodity Exchanges inIndia