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Monsoon 2022: Forecast for Agriculture Production

There have been a lot of issues with the Agri produce market around the world. The Agri economy has been tethering from one side to another ever since the pandemic began. And then the Suez canal blockage triggered a whole supply chain breakdown that the world is still suffering to recover from. 

The worst affected sectors were the FMCG sectors. FMCG stands for Fast Moving Consumer Goods. Most FMCG goods are agri based. But with the supply chain breakdown affecting the whole agri economy of the world, FMCG companies have become the sitting ducks of the modern era. 

What causes the volatility in the agri-commodity markets

The prices of agri goods are very prone to change and can change for a variety of reasons. In the past decade, gas prices were responsible for the volatility in the agri commodity prices. 

For example, Any changes in weather patterns or in gas prices will impact rice price in India. To counter this, the government of India keeps backup stocks of some of the most common cash crops in India. Rice, wheat, and some vegetables like potatoes are kept as bumper stocks to help go over the price inconsistencies. 

These days, however, there is more than one reason for the change in the price of agri commodities. As we mentioned before, the stagnation of the supply chain because of the pandemic, the recent revelation of the rupee vs. dollar, and the unusual weather patterns all contributed to the volatility in agri-commodity prices in India. 

Effect of volatility in the commodity market

If you are someone who pays attention to the share markets, then you would be familiar with the commodity exchanges. The commodity exchange in India has a huge share in the agriculture sector. The NCDEX is India’s largest agricultural derivatives contracts exchange. 

The NCDEX live prices reflect the derivative contracts on several agricultural commodities. It reflects the agri-economy of India. The NCDEX acts as a benchmark for the Indian agricultural sector. The volatility in the agri-economy has created opportunities in the market for profits to be made. 

Why do you need to be in touch with the market prices of agri-commodities

Knowing the prices of agri-commodities can be helpful for a lot of reasons. Imagine you are buying sugar in bulk, you would want to know the sugar market price. Knowing the sugar market price will make sure that you are neither overpaying for your bulk sugars nor are you undercharging for selling. O’AgriFarm is an agri commodity price discovery website that allows you to check the mandi/wholesale rates of agri commodities. The website is intuitive to use and user-friendly. This allows you to check the agri-price of wholesale goods on the go. The prices are updated dynamically, which makes sure that you are up to date with the most recent prices of the goods. Knowing the price of the agri-commodities could also help you out in NCDEX trading.

Also Read:- Everything you need to know about Bitumen

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