Instability of commodity prices has always been a major concern of the farmers, processors, merchandisers as well as the consumers in an agriculture-dominated economy. Farmers' direct exposure to price fluctuations makes it too risky for them to invest in other wise profitable activities. There are various ways to cope with this problem. The agriculture commodity market is one of them. It serves a risk-shifting function and can be used to lock-in prices in advance instead of relying on uncertain price developments in future. Apart from being a vehicle for risk transfer among hedgers and from hedgers to speculators, these markets also play a major role in price discovery. The primary objective of this book is to impart the basic knowledge of derivatives market, types of derivative markets, agriculture futures market, regulator of commodity market, commodity exchanges, price discovery in commodity market and awareness among various stakeholders of commodity market.