Home > Business > PTI > Report

India resumes gold futures trade after 41 years

October 03, 2003 16:07 IST
Last Updated: October 03, 2003 17:21 IST


After a gap of almost four decades, India on Friday launched futures trading in gold and silver.

This will give bullion traders the option of hedging against price fluctuations.

Technology-driven futures trading in gold and silver would fulfill its objectives only if poor farmers and small goldsmiths benefit from it, Minister For Consumer Affairs, Food And Public Distribution Sharad Yadav, said in New Delhi while launching futures trading in bullion.

Traders will get hedging and trading facilities in bullion futures from seven Indian cities -- New Delhi, Mumbai, Ahmedabad, Indore, Kochi, Kolkata and Chennai through the newly launched National Multi Commodity Exchange of India.

Yadav said poor farmers use gold and silver as investments for meeting future financial needs, and hoped the trading would be made relevant to them through dissemination of information about prices.

"There were thousands of small goldsmiths who make their living out of this business, and it was important they derive benefits from this scientific system," he added.

Yadav said the NMCE, which would conduct gold and silver futures trading from Friday, could help players discover an efficient future price for each commodity traded on the exchange.

After the war with China in 1962, India had banned futures trading in bullion. India is the world's largest consumer of gold and buys about 800 tonnes of the precious metal every year.

It also buys about 3,500 tonnes of silver annually.


Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor





People Who Read This Also Read


Worms found in chocolate pack

OBC offers home loan at 7.5%

Two attempt suicide in Mumbai






© Copyright 2003 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.











Copyright © 2003 rediff.com India Limited. All Rights Reserved.