Commodity future trading is permitted is presently permitted in 41 commodities in India.

Futures Trading

Futures trading is an agreement between a buyer and a seller obligating the seller to deliver a specified asset of specified quality and quantity to the buyer on a specified date at a specified place and the buyer, in turn, is obligated to pay to the seller a pre-negotiated price in exchange of the delivery.

In futures trading the contracting parties negotiate on, not only the price at which the commodity is to be delivered on a future date but also on what quality and quantity to be delivered and at what place. Futures trading is usually carried out on a futures exchange.

Advantages of Futures Trading
Futures Trading in India
Presently, futures trading is permitted in 41 commodities in India. These include pepper (domestic and international), turmeric, gur, castorseed, hessian, jute, sacking, cotton, potato, castoroil (international), soyabean (oil and cake), kapas, RBD palmolein, sugar and tea.