SEBI pushes for Indian commodity benchmarks, sees shift from global price-taker to price-maker
Tuhin Kanta Pandey, Chairman, Securities and Exchange Board of India (SEBI), said India’s position as a major producer and consumer of several commodities allows it to build greater influence over commodity price discovery rather than remaining primarily a price taker.
- Aug 25, 2026,
- Updated Aug 25, 2026 7:00 PM IST
India should explore moving progressively from global commodity benchmarks towards Indian delivery standards and develop credible domestic benchmarks that better reflect local market realities, Tuhin Kanta Pandey, Chairman, Securities and Exchange Board of India (SEBI), said at the MCX Global Commodity Conclave on August 12.
Pandey said India’s position as a major producer and consumer of several commodities gives it an opportunity to build greater influence over commodity price discovery rather than remaining primarily a price taker.
“Can we move from being price takers to becoming price makers?” Pandey asked, underlining the need for India to leverage its economic scale to build greater influence over commodity pricing.
He also urged the commodity-market ecosystem to “explore whether we can progressively move from global benchmarks towards Indian delivery standards”. The objective, he said, should be to “develop credible Indian benchmarks that reflect our own market realities.”
The push comes as India’s commodity derivatives market expands rapidly. In FY2025-26, futures turnover rose 133% to ₹166.4 lakh crore, while options premium turnover more than doubled to ₹16.8 lakh crore. During the first four months of FY2026-27, turnover had already reached around 65% of the previous financial year’s level.
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However, Pandey cautioned that market size alone should not determine the success of the commodity derivatives market. “The next stage of India’s commodity derivatives market should be defined not by turnover alone, but by utility,” he said, stressing how effectively these markets help the real economy discover prices and manage risk.
Commodity markets are particularly vulnerable to sudden shifts driven by geopolitics, weather, trade restrictions, currencies and changes in supply and demand. The volatility seen in 2026 has highlighted these risks. The World Bank shifted from an earlier projection of a 7% decline in global commodity prices in 2026 to a 16% increase, led by a 24% rise in energy prices following disruptions in West Asia.
Against this backdrop, stronger domestic benchmarks could help India develop price signals more closely aligned with its physical markets, delivery systems and consumption patterns.
SEBI is also working to deepen the connection between derivatives and physical commodity markets. The regulator has completed consultations on a phased physical-settlement architecture for agricultural commodities, with greater emphasis on warehousing, assaying, quality standards and credible delivery mechanisms.
At the same time, SEBI is examining wider foreign portfolio investor access to commodity indices and physically settled non-agricultural contracts through a calibrated framework. It is also reviewing position-limit and margin frameworks to reduce avoidable costs while retaining risk controls.
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Pandey said the broader objective was to make commodity derivatives more useful to businesses and producers. “A credible price is also economic infrastructure,” he said, noting that it can help farmers decide what to plant, manufacturers when to procure and exporters what price to quote.
For India, the ambition is therefore not simply to increase trading volumes, but to build commodity markets capable of generating trusted domestic price signals and eventually strengthening the country’s influence over global commodity price discovery.
India should explore moving progressively from global commodity benchmarks towards Indian delivery standards and develop credible domestic benchmarks that better reflect local market realities, Tuhin Kanta Pandey, Chairman, Securities and Exchange Board of India (SEBI), said at the MCX Global Commodity Conclave on August 12.
Pandey said India’s position as a major producer and consumer of several commodities gives it an opportunity to build greater influence over commodity price discovery rather than remaining primarily a price taker.
“Can we move from being price takers to becoming price makers?” Pandey asked, underlining the need for India to leverage its economic scale to build greater influence over commodity pricing.
He also urged the commodity-market ecosystem to “explore whether we can progressively move from global benchmarks towards Indian delivery standards”. The objective, he said, should be to “develop credible Indian benchmarks that reflect our own market realities.”
The push comes as India’s commodity derivatives market expands rapidly. In FY2025-26, futures turnover rose 133% to ₹166.4 lakh crore, while options premium turnover more than doubled to ₹16.8 lakh crore. During the first four months of FY2026-27, turnover had already reached around 65% of the previous financial year’s level.
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However, Pandey cautioned that market size alone should not determine the success of the commodity derivatives market. “The next stage of India’s commodity derivatives market should be defined not by turnover alone, but by utility,” he said, stressing how effectively these markets help the real economy discover prices and manage risk.
Commodity markets are particularly vulnerable to sudden shifts driven by geopolitics, weather, trade restrictions, currencies and changes in supply and demand. The volatility seen in 2026 has highlighted these risks. The World Bank shifted from an earlier projection of a 7% decline in global commodity prices in 2026 to a 16% increase, led by a 24% rise in energy prices following disruptions in West Asia.
Against this backdrop, stronger domestic benchmarks could help India develop price signals more closely aligned with its physical markets, delivery systems and consumption patterns.
SEBI is also working to deepen the connection between derivatives and physical commodity markets. The regulator has completed consultations on a phased physical-settlement architecture for agricultural commodities, with greater emphasis on warehousing, assaying, quality standards and credible delivery mechanisms.
At the same time, SEBI is examining wider foreign portfolio investor access to commodity indices and physically settled non-agricultural contracts through a calibrated framework. It is also reviewing position-limit and margin frameworks to reduce avoidable costs while retaining risk controls.
ALSO READ: SEBI allows FPIs to use digitally signed power of attorney for faster onboarding; check details
Pandey said the broader objective was to make commodity derivatives more useful to businesses and producers. “A credible price is also economic infrastructure,” he said, noting that it can help farmers decide what to plant, manufacturers when to procure and exporters what price to quote.
For India, the ambition is therefore not simply to increase trading volumes, but to build commodity markets capable of generating trusted domestic price signals and eventually strengthening the country’s influence over global commodity price discovery.