HEDGING IN AGRICULTURAL COMMODITIES

  • Sumeet Gupta
  • Vinay Kandpal
Keywords: Hedging, Commodity Futures, Price Trend, Clearing House

Abstract

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

Published
2018-11-08
How to Cite
Gupta, S., & Kandpal, V. (2018). HEDGING IN AGRICULTURAL COMMODITIES. Journal of Global Economy, 14(4), 41-50. https://doi.org/10.1956/jge.v14i4.496
Section
Conference Proceeding Article/Commentry