The demand for Indian Agri products is rising in the Middle East. With a population of about 340 million, Saudi Arabia’s farming sector is relatively small, but the country is restructuring its agricultural business to meet its growing food needs. Demand for Indian Agri products such as turmeric, tea, and coffee is also on the rise.
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.
Ethiopia is one of the fastest growing economies in Africa, with an estimated GDP growth rate of 10.5% in 2020. It is also one of the largest markets in Africa for Agri-commodity, with a population of over 100 million people.
The Jamaican economy is heavily dependent on agri-commodities, which account for around 20% of GDP and 80% of exports. The country’s agricultural sector is expected to face challenges in the coming years due to a number of factors, including declining domestic demand and increasing competition from other Caribbean countries.
There were top five countries in the Middle East that contributed to around 20 percent of the exports of principal agricultural commodities from India between April and December 2020. UAE led the list along with Saudi Arabia, Iran, Iraq, and Egypt.
The economic and socio-cultural ties between India and Saudi Arabia are centuries old. The bilateral strategic partnership depends to a significant extent on the economic relationship between the two countries.
The market for agri-commodities in Israel is projected to grow at a CAGR of 5.50% during the period 2020-2025, according to a survey conducted by an independent market research organization. The market drivers for this growth are increasing progress in agricultural innovation along with high investments made in research and developmental activities. Some of the most popular products of the Israeli agricultural market are tomatoes, carrots, turnips, bananas, and grapefruits. Significant agricultural exports from the country include dates, avocados, pomegranates, almonds, and olive oil.
Agriculture is responsible for around 20 percent of GDP (Gross Domestic Product) and 30 percent of export earnings of Morocco; this sector along with fishing and forestry employs as much as 45 percent of the total workforce of this North-African developing nation. The country produces oranges, tomatoes, potatoes, olives, and olive oil and exports premium agricultural produce to Europe.
The agriculture commodity trading market of Algeria has great potential. The agriculture sector of Algeria plays a vital role in the development of the country’s economy. Agriculture, with 12.4% of GDP, holds an important position in the Algerian economy. The Agri sector accounts for more than 25 million jobs within the country. Yet, the low agriculture productivity leads to the importation of various Agri commodities. In general, crop productivity is very low as compared to the neighboring country Morocco.
Agriculture trading is an age-old concept and goes back to the time when Romans grew crops for trading. Since ancient times, agriculture trading has expanded its wing globally. Undoubtedly, modern agri-trading not only includes the import and export of food products but also includes fibers, livestock, and raw materials. Modern Agri-trading is vast and global due to the advancement of technology. Moreover, the ever-changing trade agreements play a vital role in the growth of agri-trading.
