This study focuses on understanding the progressive growth in commodity market which has witnessed a remarkable change in the past decade. After liberalization there was a tremendous change in the commodity market. Indian futures commodity market has played a major role in financial market of India. Commodity market acts as leverage for hedging and speculation. Commodity market is also an alternative option for an investor who is not happy with equity market. Awareness level of commodity market has to be improved. Derivatives trading in India are currently permitted in 6 national and 16 regional level commodity specific exchanges.Derivative is becoming gradually a significant tool in commodity market for price discovery, hedging and speculation purpose for effective trading. This paper focuses on the organization structure, commodity exchange and its implication on the commodity market.