An index is a significant barometer for the performance of market and an ideal investment tool. This is a market benchmark which gives a sufficient input to the investors to make an investment decision. Commodity Spot market throughout the country is not integrated. Thus spot price varies significantly with geographical location. This way of determination of spot price by various agencies does not justify the price being market representative. Thus index based on spot price cannot be true indicator. Since the commodity future market is running on electronic based online trading system which makes the geographical constraint irrelevant for true price discovery. Thus constructing an index on future is more appropriate than on spot commodity market. In this paper we will be constructing a futures index to represent the market view.