scholarly journals HEDGING IN AGRICULTURAL COMMODITIES

2018 ◽  
Vol 14 (4) ◽  
pp. 41-50
Author(s):  
Sumeet Gupta ◽  
Vinay Kandpal

The Indian Agriculture Sector is on the edge of a rebellion that will revolutionize the complete food chain by means of the total food production in India is expected to twofold in the following ten years. Outstanding export projections, competitive pricing of agricultural products that are internationally comparable has created trade prospects in the agro industry. Agricultural Output is expected to grow by 11% in 2018-2019 after recording a 8-9 % increase in the previous years. It will create Indian Agriculture Industry Gateway by which exporter and importer can fulfill their requirement and reap the benefits of agro related opportunities. MCX (Multi Commodity Exchange) and NCDEX (National Commodity Derivatives Exchange) has developed opportunities for trading in spot and forward trade. It will help to develop India as Agricultural Based Economy. Trading of agricultural commodities help the traders to take the advantage of Price Fluctuations but also faces Investment Risk and Price Risk. Movement in future prices create the possibility for short

2018 ◽  
Author(s):  
B. P. Meena ◽  
A. O. Shirale ◽  
A. K. Biswas ◽  
B. L. Lakaria ◽  
Pramod Jha ◽  
...  

In the present scenario of food production system, one of the most important challenges the Indian agriculture facing today is how to sustain farm profitability and food security. In order to feed an increasing the population 2% per year and meet the food demand (341 million tonnes by 2025), the agricultural productivity and growth need to be sustained and further improved. Food security is multidimensional crisis, which directly hits the poorest and neediest and in turn decreases their already low quality of life. The agriculture sector is the starting point for finding sustainable solution to overcome the food crisis. This situation is nodding towards rethinking about the profitable agriculture. For this concern holistic approaches have to be continued with certain aspects so that the 60–70% population associated with agriculture remains in the profession. Else wise, everyone wants to have alternate entrepreneur rather than agriculture since it is less profit oriented with high risk and needs more hard work as compared to other entrepreneurs. Diversified agriculture is an integration of several crops and livestock’s, in production system for a higher food production and farm profitability.


Author(s):  
Nicole Moran

Society relies on agricultural commodities to feed and clothe the world’s population and play an important role in the economy as well as the financial markets. Unlike other commodities, agricultural commodities (grains and oilseeds, dairy, and softs) have unique characteristics that may include seasonality, perishability, and production dependent on weather conditions. Further, these products are an important part of international trade and are crucial in providing food security to ensure a stable supply of food worldwide. Financial investments within the agriculture industry have increased over the last several decades due in part to the commercialization of food production, the introduction of agricultural commodity index funds, and the increased investment in futures markets. This chapter introduces the major agricultural products, discusses price determinants and how to invest in agriculture, and highlights the differences between agricultural commodities and other commodities.


1989 ◽  
Vol 28 (2) ◽  
pp. 164-167
Author(s):  
Khwaja Sarmad

India is self-sufficient in the production of foodgrains, and in good years has substantial exportable surpluses. This is no small achievement for a country which, in the late Sixties, had to import as much as 13 percent of its requirements of foodgrains. The turnaround came as a result of the distribution of high-yielding seeds, fertilizer, modern agricultural technology, and provision of extension services. But agricultural growth has remained concentrated in the north-west of the country, which is well-endowed with infrastructures like irrigation, rural electrification, roads, markets, etc. By one estimate, these areas, which account for less than 15 percent of the total area under foodgrains cultivation in the country, have contributed as much as 56 percent of the increase in foodgrain production in the post-green· revolution period. No doubt, this has led to an increase in the regional disparities as well. Another serious imbalance in Indian agriculture has arisen because of cropwise disparities in growth, between foodgrains and non-foodgrains on the one hand, and among different foodgrains on the other. About 70 percent of the total cultivated area in the country is rain-fed, which contributes a large proportion of the total output of important crops like cereals, pulses, oilseeds, and cotton; and over 40 percent of the total food grains production of the country. But productivity in these areas is low and fluctuates according to the amount of rainfall. Dr Bhatia shows that stagnation in the agriculture sector has coincided not only with adverse weather conditions but also with adverse inputoutput price ratios, particularly between fertilizer and procurement prices of cereals.


Author(s):  
Raul Villamarin Rodriguez ◽  
Pokala Pranay Kumar

Covid-19 pandemic enhances different opportunities in different sectors. This pandemic also affected many sectors which reduced the growth. Mainly, we are focusing on the agriculture sector which is the main sector that affects on nation’s economy. Covid-19 used to have a major impact on agriculture and agro-industries. The harvest for agricultural products was accomplished, yet farmers were hampered in certain areas leading to a shortage of workers. In this research paper, we are going to discuss the impacts on the agriculture industry. Whereas the disease outbreak poses several immediate challenges again for the agriculture industry. This also provides the opportunity to accelerate reforms inside the food and agriculture sectors in order to further increase their adaptability in face of a variety of challenges, namely changes in the environment. However, there is sufficient evidence to conclude where the Covid-19 disease seems to have a significant influence on the farming and agriculture industry.


Water Policy ◽  
2018 ◽  
Vol 20 (4) ◽  
pp. 758-776 ◽  
Author(s):  
Guangyao Deng ◽  
Yan Xu ◽  
Zhuoyuan Yu

Abstract China is a country of agriculture, and agricultural production consumes a great deal of water. In this paper, we quantify the provincial food production water footprint (WF) in China during 1997–2011, and then analyze its change trend by the method LMDI (Logarithmic Mean Divisia Index). The results indicate the following. (1) China's food production WF increased during 1997–2011 as a whole. The food production WFs at the provincial level are obviously different. (2) The main reason for the change of WF of food production in China related to the virtual water content and total food production. As for the changes of food production WFs for each province, they were not always in accordance with the total food production. For example, in Guizhou, Qinghai, Sichuan, and other provinces, the food production WFs grew while total food production declined, thus indicating strong negative decoupling. Thus, it is necessary to take the measure of agricultural products' transportation ‘green channel’ to promote the development of domestic food trade and virtual water trade.


Author(s):  
Elena HORSKA ◽  
Alim PULATOV ◽  
Khabibullo PIRMATOV

The goal of this paper is to analyse socio-economic role of value added agriculture in Uzbekistan. The main agricultural exports are cotton (raw and yarn), fruits, vegetables, leather, wool and fur. There is an opportunity to acquire more social and economic advantages by exporting finished goods, which are made out of primary agricultural commodities. Adding value to agricultural products lead to increasing the share of finished goods in export, supplying import-substituting products, improving infrastructure in rural areas, providing new jobs and growing people’s income. The paper presents the analyse of the agriculture sector in GDP and the production dynamics of the primary agricultural commodities during 2005-2014, as well as comparison the share of cotton, fruits, vegetables and leather in export in 2005 and 2014. Based on the analyses it is recommended to widely use value added agriculture in order to support people, who are living in rural areas in Uzbekistan.


2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Ajoy Kumar Singh ◽  
Anil Kumar Singh ◽  
Rakesh Kumar ◽  
Ved Prakash ◽  
P.K. Sundaram

Cereals are synonyms of Indian food production, obviously due to its lion share (~ 90 %,) in total Indian food basket. Since time immemorial, fate of Indian agriculture heavily depends upon the success cereals production. The Agriculture glory of India must be strengthened by achieving self sufficiency in food production. India has to improve it agriculture image by leaping from net importer to net exporter. Time has come to show our strong presence in the arena of world agriculture market, as of now, Indian share in the WTO is ~1.0%, which needs to be doubled in quick succession. To achieve ultimate goal of Indian agriculture, there is urgent need to ensure the quality inputs viz., seeds and planting materials, fertilisers, pesticide etc, for that very purpose massive investment in agriculture sector is essential, to strengthen agro-input supply chain linked with agro-advisory service mechanism. A lot more has to be done; we have to have adhered on do more policy. This article discuss on past glory, present status and future prospect of the great Indian food basket “The Cereals”.


Technology united with research and development has evolved as a grave differentiator of the agriculture sector in India including production, processing, and agriculture packing and marketing of given crops. Near about 50 percent of the Indian workforce was engaged in the agriculture sector but its share in GDP was only 14 percent, much lower in comparison to former. Though, certain agriculture items showed a steady annual increase in terms of kilograms per hectare. Agriculture transformed significantly over the past few decades but when it comes to investment in research and development there is a lot more which needs to be done. The paper analyzes the role of various research and development institutions in boosting the growth of the agriculture sector that helps in attaining sustainable agriculture development and self-sufficiency in the production process since independence. It also focusesed on the various issues faced by these development institutions. The findings unveiled that since independence a lot more was done to boost the research and development in the agriculture sector at both the center and state levels but a proper implementation of these policies along with transparency could bring more desirable outcomes than were gained at present.


2021 ◽  
pp. 227797522098574
Author(s):  
Bhabani Sankar Rout ◽  
Nupur Moni Das ◽  
K. Chandrasekhara Rao

The present work has been designed to intensely investigate the capability of the commodity futures market in achieving the aim of price discovery. Further, the downside of the cash and futures market and transfer of the risk to other markets has also been studied using VaR, and Bivariate EGARCH. The findings of the work point that the metal commodity derivative market helps in the efficient discovery of price in the spot market except for nickel. But, in the case of the agricultural commodities, the spot is found to be leading and thus there is no price discovery except turmeric. On the other hand, the volatility spillover is bidirectional for both agri and metal commodities except copper, where volatility spills only from futures to spot. Further, the effect of negative shock informational bias differs from commodity to commodity, irrespective of metal or agriculture.


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