Reality : The markets are not complex as the products are natural and therefore cannot be artificially manipulated. The demand and supply also depends on economic factors. It is easier to understand commodities, as in our everyday life we are familiar with commodities, we know the ruling prices of these commodities in the market.
  

Reality : It is incorrect to say that only the farmers would use this market. Actually, the farmers only use the commodity futures prices as a tool to decide which crop to grow and some large farmers would use this market to hedge their price risk through an intermediary.
  

Reality : Commodities markets are needed for the most important economic function of price discovery and price risk management, Speculators constitute only one dimension of the market. They can work only because someone is hedging their risk in the market.
   

Reality : A Futures Exchange provides price signals to producers and consumers based on which they meet their long terms requirements. These price signals are not available to the user unless there is a commodity futures exchange and in its absence, the markets have large price fluctuations. This is not in the interest of the producers and consumers. Price stabilization comes from the price discovery process when market participants react positively to the information available to decide a price.
  

Myth : The operators can manipulate commodity futures prices and so it is not safe to operate in this system.

Reality: It is incorrect that commodities prices can be manipulated because all these commodities are under OGL and in case
somebody tries to corner s tocks of a commodity to manipulate price, some importer will import that commodity from any other country and deliver in India nullifying the attempt to manipulate the price.