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Topic : The Rise Of The New Consumer
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Started by : Purvi Ghosh, Marketing analyst, Percept Advertising   05 17 2010 07:46:10 +0000
Industry : FMCG/Foods/BeverageFunctional Area : Global Business(Strategy & Execution)
Activity:  42 views;  last activity : 05 20 2011 07:01:56 +0000

Commodity derivative markets have traditionally been a contentious issue at various policy forums across the world, particularly with the imbroglio created by allegations from various corners that they encourage excessive speculation and are therefore responsible for the recent commodity price escalation.

On the other hand, ever since commodity derivative trading was allowed in India in the new millennium, there has always been a hue and cry against such markets, with the alleged notion of excessive “speculation”, though there has rarely been any evidenc for it. As a result, over time, futures trading has been subjected to strict regulations, and certain commodities have been inflicted with occasional bans.


So, what are the issues we face today in the commodity market??

 
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1 Scope Of Trading
2 scope of trading

Scope Of Trading

idea posted by Purvi Ghosh Marketing analyst, Percept Advertising

The issue of expanding the scope of commodity derivative trading is apparently normative and value judgmental. This is primarily because of a large group of people who feel that commodity derivative trading should not be allowed at all and hence the question of expanding its scope does not arise. However, there are enough strong arguments in favour of strengthening commodity derivatives markets and developing supportive market institutions and awareness.

The role of commodity futures markets becomes even more compelling with India moving toward greater trade liberalization, particularly in the context of agriculture, and getting further exposed to the volatilities of international trade and finance.

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Commodity futures markets in theory are important for price discovery and covering of risk for farmers and traders. But in practicality there have been questions raised regarding the amount of manipulation and speculation in these markets and the way they tend to influence the spot prices and contribute to rising prices. Yes, as Purvi said they have a role to play in a growing, globalised economy but there is an urgent need for tighter regulation in these markets in order to make them serve the purpose that they were meant to.

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You are correct Ms.Purvi Ghose.

Scope of Trading.

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I agree with purvi.

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scope of trading

idea posted by Nihal singh Freelancer, Consumer Durables
Describe your Idea...Trading is very good option to grow up in the market, If we r going to manufacturing than only one target or have same options, but in trading u r free for doing all and grow ur life,
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