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.
Tradologie.com is the world’s 1st next-generation B2B inquiry to delivery trade enabling platform that facilitates the Agri-exporters across the globe. With the years of experience and in-depth analysis of key challenges in Agri-Export, the experts of Tradologie.com have come with unique solutions that strengthen the export business of agri-commodities and food products.
The pandemic hit the global exporters and India is not an outliner. As per the reports, the pacing rate of recovering is faster in China as compared to India. There are various reasons for the same:
- India’s consequent restrictions on trade lead to a delay in turnaround time for ships.
- Exporters in India have to pay high freight charges due to a shortage of containers.
- Freight charges to the Middle East double over a period of time.
- Europe freight charges rise to $8,000per container from $2000 per container.
- While a reasonable appreciation can be justified to fuel price hike, this massive increase witnessed in India allude to a sinister plot of artificial shortage creation and cartelization by shipping lines.
- 15-20 days delay in getting space, vessel, and slot hampers the trading sector.
- The unclogging of goods at the global level is unpredictable.
- China has a high processing time that’s one big reason China’s suppliers are luring the large ships with higher freight charges.
The global disaster of Covid-19 hits exporters at a crucial time when they are striving to reap advantages of the resurgence in international demand for commodities. Moreover, the nation’s $400 billion export goal for FY 2022 is also threatened.
The method of agricultural production that includes a high level of biodiversity with Environmental preservation practices coupled with animal welfare is called Organic Farming. Organic products (Pulses) are always in demand due to sustainable development and fertilizer-free products.
Rapid advancement in technology brought a fresh change to agricultural and commodity trading. A few decades back, agricultural products and commodities trading used to take place at local markets and mandis. Middlemen, intermediaries, and brokers had a large say in the price control mechanism.