Commodity exchanges may merge: Hope for traders

- After Ag commodity, BSE is now starting to trade futures in aluminum and zinc in base metals.

Unza, Ta. January 25, 2020, Saturday

The Budget, to be released on February 1, shows a keen interest in the commodity sector. How much tax relief will the business class receive? What are the benefits that farmers will get? A number of things have come up with the budget. The commodity sector is expected to provide relief on a number of issues, including the CTT.

Investors, farmers, jewelers, traders, all sorts, have strong expectations of what the second term of the BJP government will be like, and especially the finance minister Nirmala Sitharaman's first budget. With the advent of the Modi government, merger is being emphasized in every sector. The BJP government has implemented a simple merger of all taxes under One Nation, One Tax. There have been a number of reforms since the implementation of the YG, along with the tax and the merger of banks and insurance companies. The government can move in the direction of merger of commodity sector exchanges.

However, at present, most exchanges have given a green flag for everyone to trade. Mzi, always known for the stock market, is currently moving slowly in the commodity sector. After agri commodity, Magee is now launching futures trading in aluminum and zinc from today on base metals. After the merger, MJI has also undertaken drills in Brent crude (crude oil futures), along with new futures trading in both the above metals. Gold, guar seed and wheat have also been traded in Mizi. Are raised on.

The first budget of the Women Finance Minister is expected to eliminate the commodity transaction tax (s) imposed on the commodity sector for many years. Particularly in processed processed commodities, the cost of traders has increased. If removed, the hedgers and traders' partnerships are more likely to increase in the commodity sector. There is also an opportunity to increase agricultural loans. As Sebi recently received support from agricultural markets, giving green approval to 'Option on Goods', businesses could grow.

In addition, if the government gives relief to the mandi tax in the budget, farmers can increase income. If the government removes the box, trading can be restrained. At present, the business of canning trading is running parallel to the trading of exchanges. Which is difficult to overcome. Will the government take into account the years-old demand for the removal of the CTT? It has also become a puzzle. Every year there is a demand to remove the CTT before the budget but the government is blinding the eyes and finally putting the demand in the trash.

The Boolean sector also has many expectations on the budget. Hallmarking on jewelry Now the most urgent demand for reduction of gold import duty after implementation is the demand of the merchants. The illegality of gold smuggling is gaining momentum as the tax burden on gold trade is high. Smuggling of import duty is the current state of smuggling. There is also a demand for bullion exchanges like China to be launched.

The Modi government has been doing a lot of exercises to double the income of farmers for the past few years. Like the central government, state governments are giving priority to farmers. Recently, the Yogi government in Uttar Pradesh has made farmers happy by arranging for a half million rupees to the farmers family, if the farmer died due to farming under CM Krishi Kalyan Kalyan Yojana. The central government also appears to be pushing the budget around to please the peasantry.

Since the arrival of the Modi government from year 1, the allocation of money for the development of the agricultural sector has been steadily increasing in order to fulfill the futures promised. With all kinds of structural reforms to help farmers get affordable prices in the present agricultural markets, the government is now putting more emphasis on increasing the Internet agri market (e-name) through electronics. In the first budget of the year 1, the Modi government removed the limit of 1 thousand in agricultural loans and raised it to 8 lakh crore. The irrigation limit was also increased to 1 crore.

Then in the budget of 4, the agriculture sector allocated a huge sum of Rs 2 crore in the budget, with an increase of 5 percent. In the year 1, then the agriculture loan budget was increased to Rs 1 lakh crore and 1 lakh crore in five. The government has undertaken a mission with the goal of doubling the income of farmers through special studies in all fields ranging from seed to crop insurance and affordable prices after production.