Commodities Futures And Inflation
ABSTRACT
Indian markets recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option. They provide risk management facility. However, India, under pressure to cool inflation running near two-year highs, banned new wheat and rice futures contracts in its fledgling exchanges in February in a bid to check speculation and hopefully tame prices. This report presents a study to find out whether futures trading leads to increase in price of essential commodities like wheat and rice. It also analyses the various factors that are leading to the increase in price of these essential commodities. Some recommendations are given to control the increase in price these essential commodities.
INTRODUCTION
Commodities Futures trading is a class of Derivatives trading, in which futures contracts derive their value from the ruling price......
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Approximate Word Count: 1917
Approximate Pages: 8 (250 words per double-spaced page)
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