The and Delhi respectively . After independence ,

The
Commodity derivatives market in India is one of the oldest forms of
financial trading he forward trading in commodities existed in India
from historical times whereas the first modern futures market was
only established in 1875 ,which started trading with cotton as its
contract by the Bombay Cotton Trade Association . Due to the
widespread dispute among the leading cotton mill owners and merchants
over the functioning of the Bombay Cotton Trade Association. The
association was constituted as Bombay Cotton Exchange Ltd over a
period of time .

Later in early
1900’s certain number of futures commodity were added to the exchange
such as oil seeds, ground nut, castor seed and cotton seeds etc .
Also introduction of Wheat was also started in 1913,

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which led to the
constitution of the First Futures Exchange for Bullion Futures in
Mumbai 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 the
agricultural commodity trading which required a committee headed by A
D Shroff in 1950 to initiate the Forward Contract bill in the
Parliament, under the regulation of Ministry of Consumer Affairs and
Public Distribution.

Which the Forward
Market Commission became the regulator and controller for the trading
activities of forward and option contracts all over India. Which was
functioning well in the market until 1966, As new regulations were
implemented they had a huge impact which led to the banning of the
Forward Trading for several years .

Subsequently, the
liberalization of the Indian economy in 1991 under the Guidance of Dr
Manmohan Singh ( Financial minister during 1991) provided ease in
commodity trading. Later on the Government had setup a new committee
known as the under the chairmanship of Prof. K. N. Kabra in
1993, the committee recommended to start the futures trading in
agriculture commodities like basmati rice, cotton seed, oil seeds,
etc.

Further in 1996, the
World Bank in association with United Nations Conference on Trade and
Development (UNTCAD) conducted a study and found that there is
tremendous scope in revitalizing futures trading. In 2000, National
Agricultural policy envisioned the reforms in agricultural
commodities trading, that has brought a new wave in trading of
commodity futures and paved the path for hedging and risk management
by removal of control and regulation in agricultural market.

Change s with sebi
and other kkddmd as regulator

The Indian
government has been focusing on the developmental activities of the
Agricultural Sector in order to tackle the issues such as
unconditional climate changes,Shift in demand and supply , Natural
disasters etc are the current issues faced by Agro based industries
and producers (farmers).

So Currently the
Government of India has establishing various Financial Institutions
and Commodity Exchanges that Trade and provide services on such
commodities which totally comprises of 21 Commodity Exchanges in
India

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