The commodity market in India comprises of all palpable markets that we come across in our daily lives. Such markets are social institutions that facilitate exchange of goods for money. The cost of goods is estimated in terms of domestic currency.

India is among top 5 producers of most of the Commodities, in addition to being a major consumer of bullion and energy products. Agriculture contributes about 22% GDP of Indian economy. It employees around 57% of the labor force on total of 163 million hectors of land. Agriculture sector is an important factor in achieving a GDP growth of 8-10%. All this indicates that India can be promoted as a major centre for trading of commodity derivatives.

Commodity market is an important constituent of the financial markets of any country. It is the market where a wide range of products, viz., precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to develop a vibrant, active and liquid commodity market. This would help investors hedge their commodity risk, take speculative positions in commodities and exploit arbitrage opportunities in the market.

Commodity market, in simple terms, refers to the markets where raw or primary products are bought or sold. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.

Broadly speaking, there are two different types of markets for commodity trading. Spot markets are where immediate trading takes place. This includes personal purchases (like when you buy jewelry with cash) as well as spot trading on a much larger scale (like trading in oil or large quantities of gold). The other market involves future trading. Here, a contract is traded, rather than the commodity itself.

Metal Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel Long (), Steel Long (Govindgarh), Steel Flat, Tin, Zinc

Bullion Gold, Gold HNI, Gold M, i-gold, Silver, Silver HNI, Silver M

Fiber Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn, Kapas

Energy Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude Oil

Spices Cardamom, Jeera, Pepper, Red Chilli Plantations Arecanut, Cashew Kernel, Coffee (Robusta), Rubber Pulses Chana, Masur, Yellow Peas Petrochemicals HDPE, Polypropylene(PP), PVC

Oil & Oil Seeds

Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil, Sesame Seed, Soymeal, Soy Bean, Soy Seeds

Cereals Maize

Others Guargum, Guar Seed, Gurchaku, Mentha Oil, Potato (), Potato (Tarkeshwar), Sugar M-30, Sugar S-30

The requirement to conduct the study of Investors’ Perception Towards Commodity Markets had arisen to have more insight into the fact what the investors think about the commodity market and why and which factors are taken into consideration while investing in commodity market because there are ample number investment avenues available. The research enabled to comprehend the perception of the investors’ investing in the commodity market. The research had enabled to cover the gap identified from the review of literature. So, a need was felt to undertake a fresh research in this area.

Research is a common parlance which refers to search for knowledge. It is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedures, and technical rather philosophical means for getting and ordering the data prior to their logical analysis and manipulating different type of research designs is available depending upon the nature of research project, availability of manpower and circumstances.