Agri-Commodities Market – Crops & Produce Trading

Introduction

Agriculture is the backbone of India. Agri-derivative markets allow farmers and traders to lock in prices before harvest.

1. Major Agri-Commodities Traded

1. Grains: Wheat, Maize, Barley.
2. Pulses: Chana (Gram).
3. Oilseeds: Soybean, Castor Seed, Mustard.
4. Spices: Jeera (Cumin), Turmeric, Coriander.
5. Fiber: Cotton (Kapas).

2. Benefits of Agri-Futures

A. Price Discovery

• Looking at the Futures price of "Jeera" for next month, a farmer knows what the market expects.
• Helps in deciding whether to sell now or store.

B. Price Risk Management (Hedging)

• A miller who needs wheat after 3 months can buy a Futures contract today to lock the price.
• Protects against price rise.

3. Issues & Ban

• Often, Speculators drive up prices of essential commodities (Dal, Sugar).
• Govt/SEBI frequently bans trading in sensitive items (like Chana, Wheat) to control inflation.

Summary

• Exchange: NCDEX (Leader in Agri).
• Items: Oilseeds, Spices, Grains.
• Function: Discovery & Hedging.
• Risk: Govt Intervention (Bans).

Quiz Time! 🎯

Loading quiz…