The Indian economy has undergone lots of changes in the past few months which are absolutely new. A number of new policies and bills have come into being and each of them has their own significance and role to play in the development. Commodity market too plays a critical role in the growth and development of Indian economy in the present times. There are several roles and benefits which this marketing agenda play in the overall change in Indian economy. A topic that was given much thought at the seminar on “Agribusiness and commodities price risk management”, here we are going to provide some information regarding the same.
 

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Why would commodity market gain more important?

The overall income of the people of India is on the rise. There is a population upsurge as well in the country. At the same time the recent changes in the currency of the country has lead to low per capita availability and these factors together have led to the creation of demand for all types of services and goods. The major growth has been observed in sectors associated with food, textiles, housing, energy recourses, infrastructure and all those factors which are commodity intensive. India is on the path of becoming a major producer, consumer, exporter as well as importer of a vast range of commodities.

Global integration

The commodity market has been integrating with a number of global markets to meet the demands of the people. This in turn has created a free-trade environment which is beneficial for the economic development of the country.  This has also lead to various reforms in the internal as well as external trade policies. The commodity exchange at the international level has made Indian economy a very strong platform for business. Such global integration is essential for the overall business development of the country which has a direct influence on the economy as well.

The benefits

The commodity trading India is a great option for managing drastic price risks that may arise at times. This trading is beneficial to the stakeholders as they can manage their business through price discovery and price risk management. Various small scale local trades would benefit from the commodity marketing as well. The broker’s too play an important role in this market and give deep insight about this market to the investors which help them in deciding about their business strategies.