Commodities are more than what you think they are. Almost everything you see around is made of what market considers commodity. A commodity could be an article, a product or material that is bought and sold. It could be any kind of movable property, except actionable claims, money and securities. Commodity trade forms the backbone of world economy.
The Indian commodity market is estimated to be around Rs. 11 million, and forms almost 50 percent of the Indian GDP. It deals with agricultural commodities such as rice, wheat, groundnut, tea, coffee, jute, rubber, spices and cotton. Besides precious metals such gold and silver, the commodity market also deals with base metals like iron and aluminum and energy commodities such as crude oil and coal. The list is long.
What do the commodity brokers do? They simply facilitate the business of buyers and sellers, for a legalized rate of commission.