Agri-commodities have become very popular as an investment avenue amongst Indian investors as well as non-resident Indians (NRIs). Since the government of India has liberalized agricultural commodities trading in India, there has been a spurt in interest of people towards investing in Agri-commodities like sugar, rice, spices, pulses and millets. This article provides an overview of the current scenario of trading in agricultural commodities in India and some important factors that you should consider before venturing into trading in Agri-commodities.
What are Agri commodities?
Agri commodities refer to goods produced and consumed by agricultural activities including Agri business.
The global Agri business is largely a commodity-based industry, with producers focusing on items such as grains and meat. Agri business companies produce, store, package, market and sell these goods; they also manufacture related products such as machinery. In many cases, their transactions include trading across borders or within large supply chains. To support international trades of grains, seeds and meats—which are often very sensitive to global market prices—agribusinesses must develop strategies for dealing with a variety of complex factors. Firms can choose from several options when conducting cross-border trade.
How Does Agri Commodities Market Function?
Agri commodities are being traded globally. The global Agri business is an integral part of world trade, contributing significantly to economic development by creating employment and livelihood opportunities. This is especially true for countries that rely heavily on agriculture, such as India. Agri business firms play a key role in bringing together sellers and buyers to facilitate Agri-commodity trading. A well-functioning market for Agri commodities ensures timely delivery of products, efficient service, optimal resource utilization and fair market value for farmers worldwide.
What is the future of Agri commodities trading in India?
Agri-trading is growing at a fast pace and continues to grow even more as countries such as China and USA, who are known for their high per capita consumption rates, become increasingly concerned with nutrition. This growth is mainly supported by investments being made by global Agri businesses due to huge profits from other commodities trading sources. While we expect agricultural production will continue to increase, an escalating population will push food demand higher, states Global Agribusiness Review.
However, with rising costs of agriculture, there have been some reports that large amounts of fresh water are used for agriculture and whether or not there will be enough fresh water available has always been one of concerns within agriculture and they need water of a good quality.
How Agri-commodities Are Traded Traditionally?
Traditionally, Agri-commodities trading is done via a commodity broker. To begin trading, you first sign up with a broker. You fill out some personal information, your financial information and other required details (this can include your citizenship or residence status). Then, once you’re approved, you’ll need to provide funds so that you can trade. This involves transferring money from a bank account to your broker’s account and may require providing some proof of identification as well as making deposits via bank wire transfer or check. Once your money is in place and ready to be traded, it’s time to start looking at different contracts available for purchase—and then select which one you’d like to buy and sell.
How To Trade Agri Commodities Without Any Middlemen?
Tradologie.com is the world’s first next-generation digital platform for trading Agri-commodities and food products. It connects buyers and sellers directly from all over the world, allowing them to trade with each other in a secure, efficient and transparent manner. Hence, no brokers or middlemen are required.
Furthermore, it has 50,000+ verified sellers and 500,000+ verified buyers from all over the world. The platform facilitates buying of Agri-commodities directly from the sellers without any email or phone call.