India has 21 commodity bourses, including six operating at the national level.
Foreigners are still not allowed to trade in futures, but can buy stakes in commodity exchanges in the world's second-biggest producer of wheat and biggest buyer of gold.
Agricultural futures fell 26.46 percent to 2.5 trillion rupees in the first two months of the financial year starting from April. Cumulative turnover for bullion rose 4.23 percent to 13.52 trillion rupees, the market regulator said in a statement.
"As far as commodity futures turnover is concerned, tough times are ahead," said Harish Galipelli, head of commodities and currency, JRG Wealth Management.
Volumes will take a hit due to the commodities transaction tax as the cost of transaction will increase, making it difficult for jobbers, traders to enter and exit, he said.
CTT will be levied at 0.01 percent of the value of transaction on all non-agricultural commodities, but the date of implementation has not been fixed.
Commodity exchanges in India, which allowed futures trading in 2003, trade in about 80 commodities ranging from gold to carbon credits, but most of the volumes are cornered by 8-10 commodities.