Multi Commodity Exchange of India (MCX) launched its Silver 100g Futures contract for trading commencement on Monday, June 1, 2026. According to the company's statement, this initiative aims to expand the portfolio of silver futures in response to market feedback addressing industry needs. The contract is structured to meet hedging and investment requirements of jewellers, SMEs, and retail investors, with smaller denomination improving accessibility and strong liquidity enhancing flexibility in managing market positions. The new contract adds to MCX's existing silver futures lineup of 30 kg, 5 kg and 1 kg contracts, and monthly options in 30 kg and 5 kg denominations, with clearing and settlement handled by the Multi Commodity Exchange Clearing Corporation Limited (MCXCCL). As per the latest reports, the contract began trading on June 1, 2026, following feedback from market participants who wanted a smaller contract size that better suits their trading and business requirements. The newly launched contract will be available across multiple expiry months, including June, July, August, September, October and November 2026, significantly lowering the entry barrier for silver futures trading compared with larger contract sizes already available on the exchange.
Silver prices declined by 0.94% to settle at ₹2,66,998 per kilogram on MCX, pressured by a stronger Indian Rupee trading above the 95 level and easing geopolitical concerns following reports of a preliminary agreement between the United States and Iran. Market sentiment improved after indications that both nations are considering a framework that would extend the ceasefire and reopen the Strait of Hormuz, reducing fears of supply disruptions and inflationary pressures. Further pressure came from the latest U.S. Personal Consumption Expenditures (PCE) inflation data, which reinforced expectations that the Federal Reserve may maintain a restrictive monetary policy stance for a longer period. Kansas City Fed President Jeff Schmid stated that policymakers may need to consider making monetary policy more restrictive and emphasized the Fed's commitment to bringing inflation back toward its 2% target. Despite the decline, underlying fundamentals remain supportive, with silver holdings in London vaults declining marginally by 0.1% to 27,454 tonnes at the end of April, indicating continued tightness in available inventories.
Silver remains one of the most actively traded commodities on MCX, with Silver Futures recording an average daily turnover of ₹21,648 crore during FY26, while Silver Options saw an average daily turnover of ₹74,883 crore. According to the latest reports, MCX is one of the world's leading commodity derivatives exchanges and is ranked as the largest commodity options exchange globally, according to the FIA 2025 report. The exchange accounted for nearly 98% of the value of commodity futures trading in India during FY25, offering trading across multiple commodity segments including bullion, energy, base metals, and agricultural commodities. Established in 2003, MCX maintains partnerships with several domestic and international exchanges and trade associations.
MCX has issued a circular on the revision of its Good Delivery Norms for silver, inviting eligible domestic silver refiners to apply for empanelment under these norms. According to the exchange, this initiative is specifically aimed at reducing reliance on imports while promoting domestic silver recycling. The contract design ensures seamless delivery process with clear and transparent making charges, while quality-assured products reinforce confidence in the underlying asset. The smaller denomination is designed to reduce capital requirements for small and medium enterprises (SMEs) and retail participants, while offering quality-assured physical delivery with transparent making charges at contract expiry. The initiative is expected to encourage domestic silver refining and recycling while reducing reliance on imported silver in the long term. In India, the government has imposed restrictions on imports of silver bars and semi-manufactured silver products, categories that represented more than 90% of total silver imports last fiscal year. While these measures may reduce global demand, they are expected to tighten domestic supply and support local premiums.
Praveena Rai, Managing Director & CEO of MCX, emphasized that the Silver 100 Futures contract helps Indian silver industry businesses protect themselves against price volatility. As reported by the company, Rai noted that local jewellery businesses can now hedge or take deliveries in quantities better aligned with their inventory needs, reducing the need to commit larger amounts of capital or take exposure beyond actual business requirements. The contract enables retail participants to invest in silver in smaller quantities over time while trading within a secure and regulated exchange framework. The launch of Silver 100 Futures marks another step by MCX to broaden participation in India's silver market, with the exchange aiming to make silver hedging and investment more accessible for jewellers, SMEs, and retail investors while supporting the growth of domestic silver trading and recycling. The move comes at a time when India's precious metals market is witnessing major changes following the government's decision to increase import duty on precious metals from 6% to 15% on May 13, with market participants believing the higher import duty has widened the gap between domestic and international silver prices, creating fresh hedging requirements for jewellers, manufacturers and SMEs.
