Marketing of Agricultural Commodities in India

Objectives Of The Chapter

• 1.

  Agricultural commodities are listed and traded at various commodity exchanges in India and globally as well. Readers would understand the working of the National Level Commodity Exchanges in India.

• 2.

  Readers would come to know about the share of major agricultural commodities traded across National Level Commodity Exchanges in India.

• 3.

  Readers would understand the marketing mix for agricultural commodities in India that how commodities are bought and sold at warehouses of commodity exchanges in India.

• 4.

  The commodity exchanges provide benefits and challenges of commodity futures derivatives for investors in India.

Introduction

Indian markets have provided a new opportunity for retail investors and traders, who want to diversify their portfolios beyond shares, bonds and real estate, to participate on commodity exchanges. The spectacular growth of commodity markets has also attracted many investors around the world to expand their investment to emerging markets like India, as more and more investors are realizing the potential opportunities of these markets. Like any other market, the commodity market also plays a vital role in risk management of derivatives.