What are the top Commodities Traded in India

Last Updated: 17 Jan 2025

Let us look at the top commodities in terms of volumes and value. Which are the best commodities to trade in India and the top commodities in India for trading in futures. We shall typically focus on MCX high-volume commodities since it is the most liquid exchange of the two. We also focus on the most active commodities in terms of volumes traded and value traded and we shall take 2021 as the base to compute our rankings. Here is a quick look at the ranking of top commodities for 2021.

We look at top commodities under the following 10 categories.

1. Top Commodities by Volumes – Agri Products
2. Top Commodities by Value – Agri Products
3. Top Commodities by Volumes – Base Metals
4. Top Commodities by Value – Base Metals
5. Top Commodities by Volumes – Bullion
6. Top Commodities by Value – Bullion
7. Top Commodities by Volumes – Energy
8. Top Commodities by Value – Energy
9. Top Commodities by Volumes – Indices
10. Top Commodities by Value – Indices

How does the Commodity Market Work in India?

There are a few renowned top commodities markets in India. Some of the best commodities to trade for beginners include Multi Commodity Exchange (MCX), Indian Commodity Exchange (ICEX) and National Commodity and Derivatives Exchange (NCDEX). Over here one can trade top commodities on electronic trading platforms.

1. Members: The dealers, hedgers, arbitrageurs, and regulation speculators make up the members in the commodities market. Dealers might be individuals, businesses, or other sorts of entities.
2. Trading Instruments: Futures and spot trading are both used in commodity trading in India. While futures trading comprises contracts for the delivery of goods at fixed prices in the future, spot trading refers to the immediate buying and selling of physical goods.
3. Market Participants: Showcase members can play in an assortment of capacities. Agriculturists and other makers who support their items use the showcase to control cost hazards by settling costs for future conveyances. Theorists buy or offer contracts without the expectation to take genuine conveyance in order to benefit from cost vacillations. Arbitrageurs take advantage of estimating varieties over a few markets. Regulation financial specialists in the product showcase incorporate common stores and protection firms.
4. Regulatory Framework: SEBI controls and monitors how goods exchanges and other interposers that are involved in commodity trading operate. It guarantees ethical business conduct, openness, and investment safety.
5. Agreement and Delivery: Contracts in the futures markets have pre-decided delivery months and expiration dates. Either the actual delivery of the commodity or a financial agreement, in which the price difference is settled monetarily, are respectable styles of agreement.

Price determination is eased by the top commodities market, where the forces of supply and demand decide how much a commodity will be priced at. Price confirmation is told by participants of the market, profitable variables, global trends, and other important information.

Types Of Commodities

There are different types of items that are regarded as the best commodities to trade in India. Different types of goods can have different variations and grades within their category, which are also tradable. People can trade these commodities depending on what buyers and sellers need. Here are a few of the top commodities in India:-

1. Agricultural/Soft Product Commodities: These crops are coffee, cocoa, sugar, cotton, and elastic. Agricultural commodities can have their costs altered regularly due to climate patterns, and the way supply and request are connected. Geopolitical occasions can influence their costs as well.
2. Power: These commodities include making and utilising power. These are all sorts of power sources. These commodities are exceptionally critical for distinctive zones like business, transportation and households.
3. Cereals: Cereals These are items that come from granges like wheat, soybeans, cows milk, and also items like chocolate beans, coffee beans, sugarcane, rubber trees and cotton plants.

Trading commodities in India involves a diverse array of items such as agricultural products, power, and cereals, each with variations and grades. Prices are influenced by factors like climate, supply-demand dynamics, and geopolitical events, making these commodities crucial for various sectors including business, transportation, and households.

Top Commodities In India

We will use the tabular ranking of commodities by volumes and volumes and identify the top commodities for the year to date 2021.

In the table below we look at the most active Agro commodities by traded value on the MCX for the year to date 2021. Here is the top commodities ranking of the category.

Instrument Type	Year	Segment	Commodity	Traded Contract(Lots)	Total Value (Lacs)	Avg Daily Turnover (Lacs)
FUTCOM	2021	AGRO COMMODITIES	CPO	730973	7851491.11	44865.66
FUTCOM	2021	AGRO COMMODITIES	COTTON	323786	1848680.39	10563.89
FUTCOM	2021	AGRO COMMODITIES	MENTHA OIL	23609	101022.63	577.27
FUTCOM	2021	AGRO COMMODITIES	RUBBER	9447	15890.80	90.80v
FUTCOM	2021	AGRO COMMODITIES	KAPAS	2834	7195.69	41.12

In the table below we look at the most active Base Metal Contracts by traded value on the MCX for the year to date 2021. Here is the top commodities ranking of the category.

Instrument Type	Year	Segment	Commodity	Traded Contract(Lots)	Total Value (Lacs)	Avg Daily Turnover (Lacs)
FUTCOM	2021	BASE METALS	COPPER	2987589	52518383.35	300105.05
FUTCOM	2021	BASE METALS	NICKEL	1765229	35094967.03	200542.67
FUTCOM	2021	BASE METALS	ZINC	1440822	16456942.06	94039.67
FUTCOM	2021	BASE METALS	ALUMINIUM	713385	6768815.23	38678.94
FUTCOM	2021	BASE METALS	LEAD	608054	5174924.23	29571.00
OPTFUT	2021	BASE METALS	COPPER	671	12169.06	69.54
OPTFUT	2021	BASE METALS	ZINC	2	21.84	0.12

In the table below we look at the most active Bullion Contracts by traded contracts on the MCX for the year to date 2021. Here is the top commodities ranking of the category.

Instrument Type	Year	Segment	Commodity	Traded Contract (Lots)	Total Value (Lacs)	Avg Daily Turnover
FUTCOM	2021	BULLION	SILVERMIC	33618627	23019578.14	131540.45
FUTCOM	2021	BULLION	GOLD PETAL	10408919	490992.75	2805.67
FUTCOM	2021	BULLION	SILVERM	9489668	32481320.60	185607.55
FUTCOM	2021	BULLION	GOLDM	4566208	21620069.83	123543.26
FUTCOM	2021	BULLION	SILVER	3156891	64741130.30	369949.32
FUTCOM	2021	BULLION	GOLD	1601667	76024519.73	434425.83
FUTCOM	2021	BULLION	GOLDGUINEA	1267930	482172.12	2755.27
OPT-OUT	2021	BULLION	GOLD	215708	10454344.92	59739.11
OPT-OUT	2021	BULLION	SILVER	111566	2288548.96	13077.42
OPT-OUT	2021	BULLION	SILVERM	5739	19184.55	109.63
OPTCOM	2021	BULLION	GOLDM	372	1869.62	10.68

In the table below we look at the most active Energy Contracts by traded contracts on the MCX for the year to date 2021. Here is the top commodities ranking of the category.

Instrument Type	Year	Segment	Commodity	Traded Contract (Lots)	Total Value (Lacs)	Avg Daily Turnover (Lacs)
FUTCOM	2021	ENERGY	NATURAL GAS	30682294	89000348.30	508573.42
FUTCOM	2021	ENERGY	CRUDEOIL	13152573	62197891.09	355416.52
OPTFUT	2021	ENERGY	CRUDEOIL	6158394	31793388.00	181676.50

In the table below we look at the most active Commodity Indices by traded contracts on the MCX for the year to date 2021. Here is the top commodities ranking of the category.

Instrument Type	Year	Segment	Commodity	Traded Contract (Lots)	Total Value In Lacs	Avg Daily Turnover (Lacs)
FUTIDX	2021	INDEX	MCXBULLDEX	480195	3563750.77	20364.29
FUTIDX	2021	INDEX	MCXMETLDEX	261648	1956626.14	11180.7

Commodities for Beginners

Commodity futures and options can be traded on Indian commodity bourses like MCX, NCDEX, NSE, and BSE. Normally, commodity trading is predominantly done by those with existing exposure to an underlying. However, speculation is also quite common in the commodity markets. For beginners, the most recommended approach is to stick to the most liquid contracts in bullion or energy that are liquid.

One more option that beginners have is to trade the two commodity indices of bullion and base metals. The advantage with indices is that beginners don’t have to take on too much risk of individual commodity price fluctuations.

Frequently Asked Questions

Which commodity is best for trading?

There is nothing like the best commodity but ideally traders should focus on the commodity that is most liquid. Today, there are two indices viz. the index on bullion and the index on base metals that is quite actively traded in the Indian context. Traders can even trade in these indices which are more diversified and hence de-risked for the trader. This reduces their overall risk of trading and the vulnerability to a single commodity volatility.

What is the most profitable commodity to trade?

That varies from time to time and depends on the price. For example, through most of 2019 and 2020, gold and silver were among the most profitable commodities to trade. In the last 1 year, base metals like copper, zinc and aluminium have been extremely profitable commodities to trade. Eventually it depends on how you craft your strategy and maintain trading discipline. The basic rules in commodity trading remain the same.

Is India a significant commodity exporter?

Yes, India is a significant commodity exporter, with top commodities including **top commodities** like petroleum products, gems, and jewelry.

What factors affect commodities pricing in India?

Factors affecting commodities pricing in India include **best commodities to trade** supply and demand, production costs, economic growth, geopolitical events, natural disasters, and government policies.

Are there rules governing the trading of commodities in India?

Yes, the trading of commodities in India is governed by rules set by the Securities and Exchange Board of India (SEBI), ensuring fair and transparent trading practices.