2025, Vol. 8, Issue 2

author(s)
Syeda Rukhsana Khalid

abstract
This paper offers a historical and institutional study of the evolution of India’s commodity futures markets, tracking their metamorphosis from traditional mandis to demutualized electronic exchanges. It examines three key phases: informal pre-Independence market systems, statist post-Independence regulation, and post-liberalization modernization. Drawing on archival policy sources and descriptive quantitative data covering 2003-2022, the study overlays institutional transitions with patterns in commodity trade volumes (peaking at ?1.81 lakh crore in 2011-12), CPI food inflation trajectories, and rural income proxies. Its objectives are to (1) chronicle the sequence of institutional reforms, (2) assess the alignment between policy intentions and market outcomes, and (3) evaluate the inclusivity of these markets, particularly for smallholder farmers. The findings from the study highlight persistent tensions between liberalization and grassroots integration: while reforms have fostered formal market growth, deep structural and infrastructural barriers are continued to limit farmer participation. By combining diachronic institutional analysis with empirical overlays, the paper provides insights into regulatory fragility, market volatility, and the challenges of achieving inclusive transformation within India’s commodity futures ecosystem.