Journal articles on the topic 'Indian Agricultural Commodity Trade'
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1
Gupta, Sumeet, and Vinay Kandpal. "HEDGING IN AGRICULTURAL COMMODITIES." Journal of Global Economy 14, no. 4 (November 8, 2018): 41–50. http://dx.doi.org/10.1956/jge.v14i4.496.
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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
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Bhagwat, Shree, and Angad Singh Maravi. "THE ROLE OF FORWARD MARKETS COMMISSION IN INDIAN COMMODITY MARKETS." International Journal of Research -GRANTHAALAYAH 3, no. 11 (November 30, 2015): 87–105. http://dx.doi.org/10.29121/granthaalayah.v3.i11.2015.2919.
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This paper examines the role of Forward Markets Commission (FMC) in Indian Commodity Markets. The Results show important developments of Forward Markets Commission. Commodity futures and derivatives have a crucial role to play in the price risk management process, especially in agriculture sector. The significance of commodity derivatives has increased in the current scenario. India has long history of trade in commodity derivatives. Organized commodity derivatives in India started as early as 1875, barely about a decade after they started in Chicago. Since 2003, when commodity futures’ trading was permitted, commodity futures market in India has experienced an unprecedented boom in terms of the number of modern exchanges, number of commodities allowed for derivatives trading as well as the value of futures trading in commodities. There are 6 national and 16 regional commodity exchanges recognized and regulated by the FMC. Different types of commodities such as agricultural; bullion, plantation, energy etc. is traded on commodity exchanges in the country. So considering these points an attempt has been made to know the regulatory framework of commodity futures and derivatives market in India and various developments in Indian commodity market and commodity exchanges. This study is an attempt to investigate the performance of Forward Markets Commission in India and its role in Indian commodity market.
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Jagdambe, Subhahs. "India’s export competitiveness of agricultural products with asean." Journal of Management and Science 6, no. 1 (June 30, 2016): 72–94. http://dx.doi.org/10.26524/jms.2016.9.
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The paper attempts to assess India’s trade intensity as well as Revealed Comparative Advantage (RCA) for agriculture sector with respect to ASEAN (Association of South- East Nation) at the aggregate and disaggregate level. The study assesses the structure of comparative advantage over 2001 to 2013. ITC (International Trade centre) data available under public domain is used to accomplish the study. HS classification is used to calculate the Trade Intensity (TI) index and RCA index. The study has found that India’s Export intensity in total agriculture trade has been increasing with respect to ASEAN than rest of the world. While in terms of Import Intensity, declining trend has been observed over the study period. It has also been found that comparative advantage is decreasing gradually throughout the study period, although the pattern of India’s comparative advantage in export of agricultural products with ASEAN varies from one commodity to another commodity. The study suggests to direct the policy initiate to promote the products, having comparative advantage in exports. It will also help to producers and exporters to select appropriate commodity for trading, which have comparative advantage. Effect should be focused on promotion of exports like Meat, Vegetables and Fruits, Tea, Rice and Cereal products for Indian exporters in ASEAN market.
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Sehgal, Sanjay, Namita Rajput, and Rajeev Kumar Dua. "Price Discovery in Indian Agricultural Commodity Markets." International Journal of Accounting and Financial Reporting 2, no. 2 (August 10, 2012): 34. http://dx.doi.org/10.5296/ijafr.v2i2.2224.
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In this paper, the price discovery relationship for ten agricultural commodities has been examined. Price discovery is confirmed for all commodities except Turmeric. Price discovery results are encouraging given the nascent character of commodity market in India. However the market does not seem to be competitive. The findings have implications for policy makers, hedgers and investors and will help in deeply understanding the role of futures market in information dissemination. The commodity exchanges must strengthen their surveillance system for early detection on continuous basis of anomalous trading behaviour. These markets are becoming informationally mature and market regulators have taken adequate steps for market development. Forwards Market Commission (FMC) should be given adequate powers to regulate commodity market and penalise any insider trading and price manipulations. Well-organized spot markets must be developed, ensuring transparency and trading efficiency. Electronically traded spot exchanges must be developed and warehousing; testing labs as well as other eco-system linkages must be established to strengthen the derivative market trading mechanism for efficient price discovery mechanism.
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Kumar, K. Nirmal Ravi. "Competitiveness of Indian Agricultural Exports: A Constant Market Share Analysis." Research on World Agricultural Economy 3, no. 2 (May 26, 2022): 25. http://dx.doi.org/10.36956/rwae.v3i2.514.
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The 1991 Indian reforms aimed at economic liberalization, as a part of its economic structural adjustment, and transformed the nation’s economy into a more global market-based and service-oriented system, which revolutionized its agricultural trade facet. The new regime paved the way for the self-reliant Indian agriculture to expand its roots into the spheres of global competitiveness and export orientation. India enjoys competitive advantage in the international market and considering the growth in India’s exports of major agricultural commodities. This study employed Constant Market Share model to analyze the export performance of its various facets such as diversification, instability, elasticity, competitiveness, etc. The findings revealed that India’s growth performance of major agricultural commodities’ exports both in terms of quantity and value was found satisfactory (except wheat and cashew nuts, shelled (quantity)) during 1991-2020. During the recent past decade, i.e., 2011-2020, World Demand Effect (WDE) is the main sources of India’s agricultural export performance (due to general rise/fall in world demand given a constant market share of the India, unlike Market Distribution Effect (MDE), Commodity Composition Effect (CCE) and the Residual Competitiveness Effect (RCE) due to high inconsistency arising out of changes in external environment). Both MDE and RCE with respect to commodity-wise exports and CCE and RCE with respect to country-wise exports are found negative for majority of commodities and countries (markets) respectively. Consistently negative CCE for exports of agricultural products, total and across major export destinations were found more disheartening and this should deserve special attention. So, it is imperative to boost the export competitiveness of agricultural commodities from India and the future prospects of exports depend on how much the latest surge in COVID-19 infections in India affects its agricultural production and global demand conditions.
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Gupta, Shashi, Himanshu Choudhary, and D. R. Agarwal. "Hedging Efficiency of Indian Commodity Futures." Paradigm 21, no. 1 (June 2017): 1–20. http://dx.doi.org/10.1177/0971890717700529.
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This article examines the hedge ratio and hedging effectiveness in agricultural (castor seed, guar seed) and non-agricultural (copper, nickel, gold, silver, natural gas and crude oil) commodities traded in National Commodity and Derivative Exchange (NCDEX) and Multi Commodity Exchange (MCX), respectively. Constant and dynamic hedge ratios are estimated by using ordinary least square (OLS), vector autoregression (VAR), vector error correction model (VECM) and vector autoregressive-multivariate generalized autoregressive conditional heteroskedasticity model (VAR-MGARCH). The results of constant as well as dynamic hedge ratios reveal that the Indian futures market provides higher hedging effectiveness in case of precious metal (65–75 per cent) compared to industrial metal and energy commodities (less than 50 per cent). Hedging effectiveness for castor seed and natural gas is even lower than 10 per cent. This study concluded that VECM and VAR-MGARCH both are providing higher hedging although VECM is providing the highest hedge ratio. It has been found that the next to near month futures provide better hedging effectiveness as compared to near month futures for crude oil and silver. It is recommended that the policy makers should pay attention towards the number of delivery centres, standard of quality of underlying assets and transaction costs in spot market.
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CHETAN KUMAR, G. K., K. B. RANGAPPA, and S. SUCHITRA. "REGULATORíS DECISION AND RISK MANAGEMENT: THE CASE OF INDIA." Review of Finance and Banking 14, no. 2 (December 31, 2022): 133–42. http://dx.doi.org/10.24818/rfb.22.14.02.04.
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Whenever Indian Economy had to tackle signiÖcant ináationary pressure, Secu- rities Exchange Board of India (SEBI), which is the apex regulator of capital and commodity markets, has time and again resorted to stop the trade in futures of essential agricultural commodities while allowing trade in futures of essential energy commodities. SEBI has jus- tiÖed the step on the grounds that, doing so prevents volatility in agricultural spot market. Our study tries to analyze the nature of correction in the two segments with the help of vec- tor error correction model in the backdrop of ináationary and non-ináationary periods. In energy segment, among select commodities, the speed of error correction was 1to 2 days more as compared to non-ináationary period. With regards to commercial agricultural segment, the rate of error correction among select commodities was 4 to 7 days more as compared to non-ináationary period. Given the underdeveloped nature of agricultural futures market, SEBIís action seems bit too stringent. Although prior studies have been undertaken about Indian spot and derivative markets, empirical studies which have focused on analyzing eco- nomic rationale of SEBIís decision of restricting trade in agricultural futures during ináation are scarce. Our study tries to bridge the gap regarding the same.
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Kumar, P. Sai, and N. T. Krishna Kishore. "Direction of trade of Indian arabica coffee." INTERNATIONAL JOURNAL OF AGRICULTURAL SCIENCES 19, no. 1 (January 15, 2023): 122–25. http://dx.doi.org/10.15740/has/ijas/19.1/122-125.
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Coffee (Coffea) is one of the most valuable commercial crops and the second most traded agricultural commodity on a global scale. Around 100.55 lakh MT of coffee will be consumed worldwide in 2019–20. South America, Asia, Africa, and Central America were identified as major coffee-growing regions, comprising of countries Brazil, Vietnam, Colombia, Indonesia, Honduras, Ethiopia, India, Uganda, Peru, and Mexico. While Brazil and Vietnam contribute 50 per cent of the world’s coffee, India stands at 7th position in terms of production and exporting 2,61,374 GBE (Green Bean Equivalent - Quantity In MT) of coffee to the world, worth of Rs. 4131.82 crores during 2019-20 and contributes 2.5 per cent to the nation’s primary sector export earnings. Markov Chain analysis helps to understand the export pattern of Indian arabica coffee. Italy, Belgium, Germany, U.S.A, Switzerland, United Kingdom, France, Australia, Russian Federation and some other countries are the major importers of Indian arabica coffee. The only consistent importer of Indian arabica coffee was Italy. Despite having many major importers, India was unable to maintain a consistent share of the global market. Because of increased competition, arabica coffee’s export share has been declining. One of the major reasons for this decline was tough competition from Brazil, Vietnam, Colombia, Indonesia, Honduras, and Ethiopia. This shows that there is a need to frame policies in favor of increased coffee marketing to gain the competitive advantage in the global coffee market.
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Jagadeshwaran, P., K. R. Ashok, A. Vidhyavathi, and M. Prahadeeswaran. "India’s trade potential and export opportunities for spices." Journal of Applied and Natural Science 14, SI (July 15, 2022): 98–104. http://dx.doi.org/10.31018/jans.v14isi.3574.
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Economic growth and development of a country rely on trade as it serves as a driving force with efficient utilization of factor of endowments. Several commodities are traded world-wide, among them spices which has a long history of being one of the highly traded commodity. Developing countries including India are the leading producer and exporter of spices in the world. The demand for Indian spices has gone up in the United States of America, Vietnam, United Arab Emirates, United Kingdom, etc. The study assess the comparative advantage of major spices exporting countries for pepper, cardamom and turmeric-based on data available in International Trade Centre. To analyse the effect of trade liberalisation, a simulation model (SMART) developed by UNCTAD was used to estimate trade creation, diversion and revenue effect on importing and exporting countries. The result shows that India has a comparative advantage in the export of Turmeric, Guatemala in Cardamom and Vietnam in Pepper. The impact of tariff relief on India has greater advantage, which has trade creation in the export of cardamom and turmeric. Whereas in pepper, comparatively, trade diversion is higher than trade creation, indicating that less efficient countries are given a chance to export to the top importing countries due to a reduction in tariff. Indian spice exporters should focus on promoting or exporting spices to countries like Netherlands, United States, United Kingdom, and Germany.
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A, Indhushree, Uma Gowri M, Saravana Kumar M, Jeyajothi R, Ramadass S, and Rajesh Kumar A. "Spill-over effect of India cotton trade on labour and household income." Journal of Applied and Natural Science 16, no. 1 (March 20, 2024): 86–93. http://dx.doi.org/10.31018/jans.v16i1.5256.
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India is one of the world’s largest producers and exporters of cotton, the major raw material for the textile industry, employing more than 4.5 crore people in the country. The present study aimed to analyse the impact of adverse trade in Indian cotton sector on labor and household income by employing Social Analysis Matrix based multiplier model and partial equilibrium model. Indian textile sector has strong backward linkages with primary input multiplier and household income multiplier of 4.13 and 3.44, respectively and, thus transmitting external impacts to the labour and household income. The sector has a higher multiplier effect of 10.17 on production activities, of which the impact on the cotton sector is 0.126. Fall in export and domestic demand for clothing and apparel in addition to movement restrictions around the world during the period 2020-2021, disrupted cotton supply chain and consequent fall in demand and price of the commodity. Simulations for the increase in carry-over stock and reduction in domestic consumption and cotton exports revealed that limiting the commodity's production and supply would retain the market equilibrium and increase the domestic price to the advantage of the farmers. The study reveals that dynamics in the Indian cotton sector trade significantly impacted labour and household income. Appropriate planning for areas under cotton cultivation and alternate procurement mechanisms during emergency situations would stabilise the Indian cotton economy.
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Garg, Mohit, Shelly Singhal, Kiran Sood, Ramona Rupeika-Apoga, and Simon Grima. "Price Discovery Mechanism and Volatility Spillover between National Agriculture Market and National Commodity and Derivatives Exchange: The Study of the Indian Agricultural Commodity Market." Journal of Risk and Financial Management 16, no. 2 (January 19, 2023): 62. http://dx.doi.org/10.3390/jrfm16020062.
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Agricultural commodity markets are critical to the global economy. This study investigates the price discovery mechanism, lead-lag relationship, and volatility spillover between spot prices on the National Agriculture Market (E-NAM) and futures and spot prices on the National Commodity and Derivative Exchange (NCDEX) in the Indian agricultural commodity market. The Johansen Cointegration, Vector Error Correction (VEC), Granger causality tests, and bivariate GARCH models were applied to daily data from April 2016 to December 2020 for twelve agricultural commodities traded on the E-NAM and NCDEX. We discovered the long-run relationship using the Johansen Cointegration test and concluded that the NCDEX spot and futures market is dominant in the price discovery mechanism, and the NCDEX futures and spot markets lead the E-NAM spot prices having a unidirectional or bidirectional relationship. Furthermore, the bivariate GARCH model suggested a volatility spillover from E-NAM spot prices to NCDEX futures and spot markets for most commodities, except for bajra, barley, and jeera, which have no volatility spillover. The study’s findings have important implications for various stakeholders, including policymakers, farmers, investors, traders, and others who want to reduce price risks by using information from the E-NAM market’s spot prices.
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R L, Manogna, and Aswini Kumar Mishra. "Price discovery and volatility spillover: an empirical evidence from spot and futures agricultural commodity markets in India." Journal of Agribusiness in Developing and Emerging Economies 10, no. 4 (May 23, 2020): 447–73. http://dx.doi.org/10.1108/jadee-10-2019-0175.
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PurposePrice discovery and spillover effect are prominent indicators in the commodity futures market to protect the interest of consumers, farmers and to hedge sharp price fluctuations. The purpose of this paper is to investigate empirically the price discovery and volatility spillover in Indian agriculture spot and futures commodity markets.Design/methodology/approachThis study uses Granger causality, vector error correction model (VECM) and exponential generalized autoregressive conditional heteroskedasticity (EGARCH) to examines the price discovery and spillover effects for nine most liquid agricultural commodities in spot and futures markets traded on National Commodity and Derivatives Exchange (NCDEX).FindingsThe VECM results show that price discovery exists in all the nine commodities with futures market leading the spot in case of six commodities, namely soybean seed, coriander, turmeric, castor seed, guar seed and chana. Whereas in case of three commodities (cotton seed, rape mustard seed and jeera), price discovery takes place in the spot market. The Granger causality tests indicate that futures markets have stronger ability to predict spot prices. Supporting these, the results from EGARCH volatility test reveal that there exist mutual spillover effects on futures and spot markets. Thus, it could be inferred that futures market is more efficient in price discovery of agricultural commodities in India.Research limitations/implicationsThese results can help the market participants to benefit by hedging out the uncertainty and the policymakers to design futures contracts to improve the efficiency of the agricultural commodity derivatives market.Practical implicationsThe findings provide fresh view on lead–lag relationship between future and spot prices using the latest data confirming that futures market indeed is dominant in price discovery.Originality/valueThere are very few studies that have explored the efficiency of the agricultural commodity spot and futures markets in India using both price discovery and volatility spillover in a detailed manner, especially at the individual agriculture commodity level.
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Dhivya, R., M. Prahadeeswaran, R. Parimalaragan, C. Thangamani, and S. Kavitha. "Commodity Future Trading and Cointegration of Turmeric Markets in India." Asian Journal of Agricultural Extension, Economics & Sociology 41, no. 9 (June 27, 2023): 190–99. http://dx.doi.org/10.9734/ajaees/2023/v41i92031.
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The government has reduced its direct market intervention in order to promote private sector engagement based on market forces, Farmers in an agriculture-dominated economy like India suffer not only yield risk but also pricing risk. As a result, agricultural products are now more vulnerable to market risks related to pricing and other factors. The futures market has to decide the prices of a commodity on the basis of demand and supply. It is important to know about the bi-directional and unidirectional relationship between different market’s the prices and future and Spot markets in India, price discovery process and price forecasting in Indian agricultural commodities. Knowing about different market’s price Integration will help us to know the prevailing prices in various markets and also the impact of one market’s price on another. It will help the farmers to know the different pricing statuses in different markets. The study analyses the efficiency of commodity futures of turmeric traded in NCDEX for 2016-2022 and the cointegration of theNizamabad, Erode, Sangli and Cuddapah Markets of India. In agriculture, commodity futures and derivatives are essential to the process of managing price risk.
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Sehgal, Sanjay, and Tarunika Jain Agrawal. "Impact of Commodity Transaction Tax on Market Liquidity, Volatility, and Government Revenues: An Empirical Study for India." Vikalpa: The Journal for Decision Makers 44, no. 1 (March 2019): 12–29. http://dx.doi.org/10.1177/0256090919826316.
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Executive Summary A commodity transaction tax (CTT) of 0.01 per cent is levied on non-agricultural commodity futures trading since 1 July 2013 by the Government of India. This article examines the impact of CTT on market liquidity, volatility and government tax revenues for the Indian commodities market. We use daily data of five sample commodities, namely gold, aluminium, copper, zinc and crude oil available from 1 May 2010 to 31 August 2016. It is found that CTT imposition has destroyed the parity of the Indian commodity futures market with the international markets as CTT is absent on COMEX, LME, NYMEX, and so on. Moreover, evidence of trade migration can be found by drawing a comparison across MCX and international exchanges. This argument is further substantiated by observing the decline in liquidity after the imposition of CTT. It should be further noted that parity with the equity market is also lost as the transaction taxes imposed in equity and commodity markets are not in line with the level of volatilities of the two markets. CTT has also failed to curb speculative pressure as average volatility on major commodities has risen significantly by about 33 per cent post its imposition. Considering the transaction tax, income tax and service tax aspects and decline in the trading volume attributed solely to the CTT imposition, it is found that CTT results in huge revenue loss to the exchequer. It is estimated that at the current CTT rate, government is losing an annual net tax revenue worth ₹30 billion. Even at a lower rate of 0.001 per cent (which is one-tenth of the current rate of 0.01%), the government’s fiscal loss is expected to be about ₹2.50 billion. Even if we make a conservative assumption that CTT accounts for only 25 per cent decline in the trading volumes, the optimal CTT rate, in terms of tax revenue collections, is found at 0.003 per cent, well below the current rate. There is, therefore, no justification for retaining CTT on the commodity futures trading in India as it leads to a huge revenue loss to the government, owing to reduced trading activity and trade migration. Withdrawal of CTT would be ideal for Indian commodities market development, improving its liquidity and making it more internationally competitive.
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Kumar Soni, Tarun. "Cointegration, linear and nonlinear causality." Journal of Agribusiness in Developing and Emerging Economies 4, no. 2 (November 11, 2014): 157–71. http://dx.doi.org/10.1108/jadee-07-2012-0019.
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Purpose – The purpose of this paper is to study the market efficiency, unbiasedness and the direction of causality among four agricultural commodity futures contracts for a forecasting horizon of 28 days, 56 days and 84 days which are traded at National Commodity and Derivatives Exchange Ltd. Design/methodology/approach – To analyse the efficiency of futures market in Indian scenario, we focus on maize, chickpea, soybean and wheat which are among the most important agricultural commodities traded in India. In the first step, Augmented Dickey-Fuller test and nonparametric Phillips-Perron approaches have been used to examine the stationarity of all futures and spot price series. After testing the presence of cointegration in futures and spot series using Johansen’s Cointegration approach, the joint restrictions of β 0=0, β 1=1 and β 1=1 on the cointegrating vectors were imposed to test whether the futures price is an unbiased predictor of spot at contract maturity. In the next step, linear Toda and Yamamoto (1995) and the nonparametric Diks and Panchenko (2006) causality tests were applied to examine the direction of causality. Finally, nonlinear test were applied on the vector error correction model (VECM) residuals to investigate whether any remaining causality is strictly nonlinear in nature. Findings – The results of cointegration tests between futures and spot prices of the selected agricultural commodities indicated a long term relationship do exist in three out of four futures contracts. However, the Wald tests results on the cointegrating vectors indicate markets as inefficient and biased. Further, analysis of short-term relationship using alternate tests of causality do not give consistent results for same commodity series indicating that results may vary due to alternate measures and specifications. Finally, if we consider the results of Diks-Panchenko test on the filtered VECM-residuals, results provide evidence that if cointegration is taken into account; neither spot nor future leads or lags the other consistently. Research limitations/implications – The results are based on the sample of four agricultural futures commodity contracts. The study can be extended to a larger sample of contracts and relative efficiency of each contract can be explored. Originality/value – There are very few studies that have explored the efficiency, unbiasedness and direction of causality using both linear and nonlinear techniques for Indian agriculture commodity futures market for different forecasting horizons.
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Reddy, Nirmala K., B. M. Chandra Shekar, and R. Munilakshmi. "Future Trading in India and Commodity Price Risk Management: A Pragmatic Study." SDMIMD Journal of Management 5, no. 1 (April 4, 2014): 75. http://dx.doi.org/10.18311/sdmimd/2014/2672.
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Commodity future markets in India are experiencing unparalleled growth and have attained critical economic significance in the last one decade. On the other hand, instability in commodity prices is becoming an issue of great concern not only for India, but all over the world impacting income, economic growth and a poor adversely. Ever-increasing demand and supply side constraints are adding to the upsurge in prices of metal and agricultural commodities, affecting manufacturers and consumers at the same time. Moreover, farmer participation in the market has been very poor. So the price risk management in commodity is not a cliché but a necessity for the development of future market. In an agriculture based economy like India, commodity derivatives are expected to play a pivotal role in the process of price discovery and risk management. The price discovery in futures markets would not be effective unless spot markets are regulated and integrated. The present paper aims to analyse the performance of futures trading in improvising commodity price risk management in India. The study employs co-integration technique to study the existence of long-term relationship between the spot and future prices of agricultural and metal commodities traded in Indian commodity exchanges. The study also explores the volatility aspect in spot and future prices to test the informational efficiency of the contracts and comment on their suitability for hedging activities. Based on the results, propositions would be made on the nature of speculative conditions and offer suggestions for improvement futures trading in commodities.
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Ghosh, Sunandan, Manmohan Agarwal, and Adrita Banerjee. "India–China Trade: Asymmetrical Developments and Future Prospects." South Asia Economic Journal 20, no. 1 (March 2019): 70–93. http://dx.doi.org/10.1177/1391561419840137.
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This article seeks to provide an overview of the evolution and analyses the changing composition of trade between India and China over the period 1983–2017. We find that Chinese exports are almost completely concentrated in manufactures, especially finished equipment goods, whereas Indian exports consist of both agriculture and manufactures and over time have shifted predominantly to intermediate goods. Further, both the countries are exporting those commodities to each other in which they have a revealed comparative advantage, with China’s exports being more diversified. We employ vector error correction estimation and show that China’s exports to India are dependent on India’s household consumption expenditure, while India’ exports to China are correlated to Chinese manufacturing value added. Finally, we calculate the share of each country’s commodity-wise export to the partner in their respective total exports with a view to studying prospects for India–China trade. We conclude that for further trade expansion, diversification is extremely necessary, and Indian exports of inputs to Chinese industries need to change substantially to accommodate the changing nature of China’s industrial structure. JEL: F14, F15, O24
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Kaur, Rajwant. "A Study on Agriculture & Allied Commodity Composition of Indian Foreign Trade during the Period from 2009-10 to 2021-22." International Journal of Science and Research (IJSR) 12, no. 9 (September 5, 2023): 1045–50. http://dx.doi.org/10.21275/sr23912103206.
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PRABHA, VINEET. "INDIAN DERIVATIVES MARKET - GLOBAL PERSPECTIVE." Turkish Journal of Computer and Mathematics Education 09, no. 01 (2018): 263–78. http://dx.doi.org/10.36893/tercomat.2018.v09i01.263-278.
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The presence of risk is a defining feature of most financial and commodity markets. The dynamics of demand and supply are the forces that, over the course of time, are responsible for causing price fluctuations in a variety of goods, including agricultural and nonagricultural products. The amount of international trade and business has significantly increased as a result of the globalisation and liberalisation wave that has been sweeping the globe over the course of the last two decades. Due to the quick and unpredictable changes in interest rates, exchange rates, and price of financial assets as a result of this, the business world is now exposed to an uncontrollable amount of financial risk. Given the current climate of extreme uncertainty in the business world, risk management is more crucial than ever. An impressive feat of financial engineering was the creation of the derivatives market. Risk associated with the underlying asset's fluctuating value was mitigated in a way that was both cost-effective and time-efficient. It has been relatively recent for India to experience the emergence and growth of a derivatives market. The derivatives market has grown exponentially in terms of both the number of contracts traded and the volume of contracts since it first opened in June of 2000. From Rs. 2365 crore in the previous fiscal year, 2000- 2001, the market's revenue increased to Rs. 110,104,82.20 crore in 2008-2009. In just eight years, India's derivatives market has grown to become one of the world's largest. This rapid expansion has allowed it to surpass the cash segment in terms of both turnover and the number of contracts traded. This research looks at the development of derivative trading, the nature of derivative products, the history of related policies and regulations, the current state of the derivatives market in India, and its potential in the years to come. Some of the space is also devoted to a discussion of the global derivatives markets and how they stack up against India's derivatives market.
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Gupta, Shashi, Himanshu Choudhary, and D. R. Agarwal. "An Empirical Analysis of Market Efficiency and Price Discovery in Indian Commodity Market." Global Business Review 19, no. 3 (February 15, 2018): 771–89. http://dx.doi.org/10.1177/0972150917713882.
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The present article is an attempt to empirically investigate the long-term market efficiency and price discovery in Indian commodity futures market. The study has been conducted with eight commodities which include two agricultural commodities, two industrial commodities, two precious metal and two energy commodities. Sophisticated statistical methods like restricted cointegration and vector error correction model (VECM) are used to analyse the spot and futures prices time series. Restricted cointegration test shows that near-month futures prices for all the commodities are cointegrated with the spot prices but futures prices of all the commodities are inefficient to predict the future spot price. Indian commodity futures market evidenced as the thinly traded market (Kumar & Pandey, 2013, Journal of Indian Business Research, 5(2), 101–121) rejects the null hypothesis of efficiency and unbiasedness for all the eight commodities which reconfirms the result of Fortenbery and Zapata (1997, Journal of Futures Markets, 17(3), 279–301). The presence of short-term biases in the Indian futures market is evidenced in the results of VECM model which indicates the presence of informational efficiency. The statistically significant value of past prices of spot and futures confirm the short-term inefficiency and biasedness. The significant value of error correction term (ECT) of futures prices suggests that commodity futures are the most important indicator of commodity price movements. The important implication of the results is for market traders. They can use the futures prices to discover the new equilibrium and earn profits by transmitting it to the spot market. The better understanding of the interconnectedness of these market would be useful for policymakers who try to establish stability in the financial markets.
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Kamesh, T. M. "India-China Agricultural Trade Based on Virtual Water: A Heckscher- Ohlin Approach." Asian Journal of Advances in Agricultural Research 21, no. 2 (February 5, 2023): 1–8. http://dx.doi.org/10.9734/ajaar/2023/v21i2411.
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Aim: This paper provides the economics of Virtual Water (VW) exporting to other countries through major agricultural commodities from India. Virtual Water is interconnected with food sustainability and it is the amount of hidden water transferred to other countries through trade. India produces and exports high water-consuming products but contains only 2.56 per cent of total water available in our world. By analysing VW, the total VW export from and import to India and the comparative advantage in producing the commodity in India can be obtained.
Methodology: VW for major crops is estimated by dividing the total water required or applied for the specified crop by the total yield of the crop. In this paper, we computed the virtual water trade for the major crops in India and analysed the comparative advantage for India in producing the crop. The data required for the analysis are collected from various secondary sources like the Directorate of Economics and Statistics (DES, GoI), Indian Agricultural Statistical Research Institute (IASRI), EXIM Bank, and FAO Aqua Stat.
Results: In the years 2018-19 and 2017-18, India exported 34515 MCM and 41080 MCM of VW through rice followed by 420 MCM and 622 MCM of VW through Wheat, 276 MCM and 184 MCM of VW through Maize. When comparing the production of rice and groundnut in China and India in water requirement aspect, India has the comparative advantage in the production of groundnut and china has the comparative advantage in the production of rice and also shows the same in the yield aspect.
Conclusion: With the growing water scarcity in India, we should shift the focus from the high-water requirement crop to the lower crop. In the end, we sort out the water scarcity problem and can attain sustainability.
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K Jose, Sharon, and Girish G P. "Modelling and Forecasting Commodities Prices in Emerging Market: Lessons from the Preceding Super Cycle." International Journal of Accounting & Finance Review 5, no. 2 (September 17, 2020): 54–63. http://dx.doi.org/10.46281/ijafr.v5i2.771.
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Futures trading is one of the oldest methods of trading and investing in commodities. History of commodities futures trading in India is interrupted, flabbergasted and disrupted unlike commodities future trading in Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), or London Metal Exchange (LME) where futures trading has been taking place uninterrupted for over a century. Prohibiting of futures trading in India in a large part of the last few decades has ensured research on commodities trading in India is still at an embryonic stage. In this study, we model Commodity prices of select Agriculture (Barley, Jeera, Sugar, and Pepper), Metal (Aluminium, Copper, Lead, and Gold), and Energy commodities (Crude Oil) in Indian Commodity Markets. Data during the Super-cycle period of commodities in India from 2003 to 2013 is used for the study and modeled using the state-space specification. The results of the study suggest that state-space specification and Kalman filter provides preeminent estimates for modeling and forecasting Indian commodity prices during the Super-cycle period. The results of the study provide crucial insights for pension funds, alternate investment funds, hedge funds and sovereign wealth funds worldwide to strategize better in the next expected super-cycle period of commodities post Covid-19 with burgeoning demand from developing economies of Asia and Africa.
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Arapova, E. "EAEU-India Free Trade Area: Potential Tariff Liberalization Effects for Russia." International Trends / Mezhdunarodnye protsessy 19, no. 4 (2021): 68–88. http://dx.doi.org/10.17994/it.2021.19.4.67.2.
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In 2017, negotiations on the free trade area between India and the EAEU countries entered an active phase. The directions of the negotiation process cover the issues of import tariff liberalization, and the elimination of non-tariff restrictions. The study aims at quantifying the potential impact of mutual tariff liberalization on the dynamics of bilateral trade between Russia and India, in order to develop key principles for Russia's negotiating position (as part of the EAEU), taking into account its strategic priorities. The research methodology bases on the SMART partial equilibrium model and a qualitative analysis of contemporary trends in import demand and the degree of India’s trade protectionism towards imports from the EAEU countries. The study found that the symmetric bilateral tariff liberalization may result in the higher potential increase in Russian exports to India than in the corresponding effects on imports, which will increase the bilateral trade surplus. This is in the interests of Russia, but it hardly meets the strategic interests of India due to its chronic trade deficit. The free trade area may lead to the diversification of the commodity component of Russian exports due to the growing export supplies of Russian coal, to a lesser extent – of metals (aluminum, copper and articles thereof). However, the opportunities to increase the share of high-tech products in the structure of Russian exports remain limited. The free trade area can become an important tool for strengthening Russian exporters of fertilizers, as well as certain categories of agricultural products. In turn, Indian exporters can strengthen their positions on the Russian market of medicines, as well as increase the share of textile products, jewelry and certain categories of agricultural products. The results can serve for developing the position of Russia (as a EAEU member) in multilateral negotiations.
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A, Indhushree, Anil Kuruvila, Jesy Thomas, and Latha Bastine C. "Fruit and vegetable exports in the post-liberalization era: The Indian experience." Journal of Horticultural Sciences 12, no. 2 (December 31, 2017): 133–42. http://dx.doi.org/10.24154/jhs.v12i2.14.
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The liberalization of agricultural trade brought about by the economic reforms of 1991, the subsequent WTO agreement and the proliferating Regional Trading Agreements have opened opportunities as well as challenges for India’s horticultural trade. This paper analyses the performance of horticultural exports from the country in terms of growth, instability, dynamics, diversification and stability with respect to commodities and markets and the constraints in terms of the Non-Tariff Measures (NTMs) faced and delineates the opportunities and strategies required to be followed by the sector for a sustainable growth. The horticultural exports from the country have grown significantly in both quantity and value terms during the period from 1991 to 2016. The highest share in the exports of horticultural products from India was accounted by grapes for which the major markets were Netherlands, Russia, United Kingdom, UAE, Germany and Saudi Arabia. Among the vegetables, India accounted for about 9.4 per cent of share in world exports of onion and the main destinations were Bangladesh, Malaysia, UAE and Sri Lanka. The horticultural exports have shown increased commodity diversification as well as geographical diversification due to increased market access in developed countries. Even though the tariffs have come down there by increasing the exports, the NTMs, especially quality issues in connection with sanitary and phyto-sanitary regulations have increased in the post- liberalization era. Given the inherent potential and rising competiveness of the India’s horticultural sector, the removal of product specific constraints, especially production of commodities of international standards could definitely help in sustaining the growth of horticultural exports.
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Y., Abubakar, and Yandaki U.A. "From Commodity to Colonial Currencies: A History of Money in the Former Sokoto Province of Nigeria during Pre-Colonial and Colonial Periods." African Journal of Social Sciences and Humanities Research 5, no. 5 (October 18, 2022): 59–78. http://dx.doi.org/10.52589/ajsshr-nfy9qrgp.
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Prior to the British conquest of Northern Nigeria in 1903, to which the former Sokoto Province area of Nigeria belonged, the region had an organised economy consisting of an agricultural system that produced not only foodstuffs but also raw materials and supplies for industries and international trade. There were systems of markets, taxation, credit, as well as local and long distance trade. There were also many kinds of currencies used as medium of exchange. The currencies are being referred to differently by various scholars. Some of the names given to them include: ‘commodity’, ‘trade’, ‘traditional’ or ‘local’ currencies. They include slaves, cloths, cowries, manilla, iron rods, silver, gold, Maria Theresa dollars, etc. Some of them had very limited areas in which they were used as currency while others were used over a vast area. Moreover, some of them such as slaves and cloth were locally sourced and had other uses than serving as currency. Others like cowries and silver dollars were obtained from far places such as Maldives Island in the Indian Ocean and various European and American countries respectively. However, when colonial rule was imposed on Africans, the colonial powers regarded the pre-colonial currencies not only as inefficient but also pernicious and then replaced them with colonial currencies. The colonial currencies were actually more portable, easily convertible and universally acceptable compared to the pre-colonial currencies. Thus, the British considered the pre-colonial currencies of the Nigerian area as ‘cumbersome’, which would not allow for international trade and incorporation of the country’s economy into that of the British capitalist economy. Consequently, the British coins were introduced and gradually they replaced the pre-colonial currencies as the only medium of exchange. This paper, therefore, examines the history of transition from the use of commodity to colonial currencies as media of exchange in the former Sokoto Province of Nigeria during the pre-colonial and colonial periods. Historical research methodology, through the use of primary and secondary sources, were employed to write the paper.
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Gowri, M. Uma, K. M. Shivakumar, and S. Padmarani. "Impact of nontariff measures on the exports of the beverage sector in India." Journal of Applied and Natural Science 14, SI (July 15, 2022): 186–91. http://dx.doi.org/10.31018/jans.v14isi.3607.
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In the recent past, agricultural exports, especially plantation crops, which are the backbone of India, have been subjected to many nontariff measures. Since the liberalisation of trade has led to the integration of global commodity markets, developing countries are significantly affected by these trade barriers, which indirectly hurt millions of plantation community. Traditionally, India is well known for its exports of beverages and stringent maximum residual limits, traceability issues, and food safety standards are complex issues surmounting trade in the plantation sector around the world. Hence, the present research study attempts to find the shock of nontariff measures on the prices of both export and domestic beverages and the hammering in returns to the Indian beverage industry by the partial equilibrium method. This model directly measures the simulation effect of nontariff measures by imposing NTM on tea and coffee sector. It is obvious that as the NTM percent increases from 10 percent to 25 percent on tea sector, the loss in export quantity was more from 22.24 million kg to 55.61 million kg and loss of revenue was from Rs. 2997 million to Rs. 7492 million for the corresponding NTMs. Likewise the loss in export quantity (62.85 million kg) and loss in revenue (Rs. 9412 million) were high in 25 per cent of NTM. The present study shows how to allow for market imperfections and trade facilitating effects of nontariff measures in the beverage sector.
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Ostashko, Tamara, and Vitalij Venger. "Ukraine’s trade policy in Asia under multipolar globalization." Ekonomìka ì prognozuvannâ 2023, no. 2 (June 30, 2023): 92–117. http://dx.doi.org/10.15407/eip2023.02.092.
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The article defines the directions of Ukraine’s trade policy under multipolar globalization, which assumes that the centers of development and trade are concentrated both among developed and developing economies. The article analyzes the development of Ukraine's trade with the leading economies of Asia - China, India, Japan and the Republic of Korea, which have created a powerful pole of world trade in Southeast Asia. However, domestic exports to these countries are developing unevenly and at a moderate pace. The latter is explained by the specific features of the trade regime of these countries, primarily the high level of non-tariff market protection. Domestic exports to Asian countries remain extremely undiversified with the predominance of one or two goods in the structure: mainly ores and corn are exported to China, to India - sunflower oil, to Japan - ores and tobacco products, and to Korea - corn and wheat. Estimates of the volume of trade in domestic goods after the full-scale invasion of the Russian Federation into Ukraine show that in the first half of 2022 alone, the exports to Asian countries decreased by 49%, and the imports decreased by 20%. It is assumed that by the end of 2022, the volume of foreign trade turnover between Ukraine and the People’s Republic of China may decrease by an average of 32.9% compared to 2021, India – by 41.9%, Japan – by 26, 6%, and Korea – by 28,5%. Diversification of commodity exports with an emphasis on goods with a higher share of value added is defined as an important direction of trade policy in relation to the leading countries of Asia. In particular, prospective agricultural export products to Asian countries are honey, chicken, dairy products, etc. Prospective industrial goods include inorganic chemical products, fertilizers, wood products, nuclear reactors, etc. Recommendations for improving Ukraine’s trade policy have been developed, and the need is substantiated to conclude free trade agreements in order to further develop Ukraine’s trade with leading Asian countries. Also, the need to abandon the idea of negotiating a free trade agreement and investment agreement with China has been proven. The article analyzes the policy of economic patriotism pursued by the Indian government, in particular as a response to the full-scale invasion of the Russian Federation into Ukraine. The authors note India’s disagreement on issues of opening markets for sensitive agricultural products, which causes the complexity and delay in the negotiations on free trade with this country. Access to the markets of Japan and the Republic of Korea is complicated by the high level of tariff and non-tariff barriers. However, the analysis of the trade policy of these countries shows that a significant part of markets of both agricultural and industrial goods in these countries were opened due to the numerous FTAs. It is recommended to initiate negotiations on free trade with Japan and the Republic of Korea in order to improve Ukraine’s competitive position in the markets of these countries.
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Wulandari, Siti Abir. "Ekspor CPO (Crude Palm Oil) Indonesia Ke India Dengan Analisis Model Gravity." Jurnal MeA (Media Agribisnis) 7, no. 2 (October 29, 2022): 117. http://dx.doi.org/10.33087/mea.v7i2.136.
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The agricultural sector is one of the sectors that takes a role in international trade. Exports are one way to increase state revenues and in turn can stimulate an increase in Gross Domestic Product (GDP). Exports are the most important part that must be considered for the achievement of sustainable economic development. In this case the progress of the export of a country that has no constraints will benefit the country itself. One of Indonesia's mainstay export commodities is palm oil (CPO). India is the main destination country for Indonesian CPO exports. The consumption of vegetable oils in India has increased over the past two decades as populations grow, incomes increase, and restaurants have sprung up to cater to crowds who start eating out more often. The Indian state's vegetable oil imports have soared to 15 million tonnes from 4 million just two decades ago, but imports fell in 2019/20 and 2020/21 after pandemic-related lockdowns that swept the world. The study aims to describe Indonesia's palm oil exports to India and to determine the factors affecting Indonesia's palm oil exports to India. This research was conducted in the destination country of Indonesia's palm oil (CPO) export to India, with the data collection time from 1992 to 2020. The palm oil commodity in this study is based on the harmonized system (HS) 151190010 published by the United Nations Commission trade (UN Comtrade). The method used in this study is time series analysis using a gravity model approach. The results of the analysis using the gravity method show that GDP per capita in Indonesia is based on constant prices, GDP per capita in India is based on constant prices, Indian tariffs and economic distance have a significant effect on the value of Indonesia's CPO exports to India.
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Kumar, Kepulaje Abhaya, Prakash Pinto, Iqbal Thonse Hawaldar, Cristi Spulbar, and Ramona Birau. "Crude oil futures to manage the price risk of natural rubber: Empirical evidence from India." Agricultural Economics (Zemědělská ekonomika) 67, No. 10 (October 26, 2021): 423–34. http://dx.doi.org/10.17221/28/2021-agricecon.
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The trading of natural rubber derivatives in the Indian commodity exchanges was banned several times in the past. Hence, in India, the derivatives on natural rubber are not traded actively and regularly. We have examined the possibility of a forecast model and a cross hedge tool for the natural rubber price by using crude oil futures in India. Results of the Johansen cointegration test proved that there is no cointegration equation in the model; hence, there is no scope to develop long-run models or error correction models. We have developed a vector autoregressive [VAR(2)] model to forecast the rubber price, and we examined the possibility of a cross hedge for natural rubber further by using the Pearson correlation coefficient and Granger causality test. We have extended our research to a structural VAR analysis to examine the effect of crude futures and exchange rate shocks on the natural rubber price. Our results showed that there is a short-term relationship between the crude oil futures price, the exchange rates of the US dollar to the Indian rupee, the Malaysian ringgit to the Indian rupee and the Thai baht to the Indian rupee; and the natural rubber price in India. The effort of policymakers to cause the Indian rupee to appreciate against the Thai baht and Malaysian ringgit may increase the natural rubber price in India. Natural rubber traders, growers and consumers can use crude futures to hedge the price risk. The Indian Rubber Board can suggest the VAR(2) model to predict the short-run price for natural rubber.
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Maitra, Debashish. "Do seasonality, break and spillover effects explain commodity price volatility." Journal of Agribusiness in Developing and Emerging Economies 8, no. 1 (March 12, 2018): 144–70. http://dx.doi.org/10.1108/jadee-04-2015-0019.
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Purpose The purpose of this paper is to understand the volatility in commodity futures and spot markets. The study starts with a few questions: first, the effect of seasonality on the volatility is studied. Thereafter, the presence of structural breaks in the variance is identified. At last the seasonality, structural shifts and spillover effects are examined together to find out their effects on volatility. Design/methodology/approach The methodology heavily employs econometric tools and techniques. The monthly seasonal dummies are incorporated to identify the effects of seasonality on volatility. Then, the presence of break in volatility is tested by cumulative sum of squares (CUSUM test), followed by generalized autoregressive conditional heteroscedastictity and EGARCH models are measured by including seasonal dummies, break dummies and the residuals of other market in the variance equation to determine spillover effects. Findings It is found that the effects of seasonality on volatility cannot be ignored as the effects are significant. The presence of asymmetry is detected in all the commodities. The presence of seasonality and structural breaks in the variance equation are statistically able to reduce the volatility but the magnitude is very negligible with an exception in cumin futures markets. Bi-directional volatility spillover between futures and spot markets is observed in all the commodities and the effect of spillover is more from spot markets to the futures markets. Research limitations/implications This study is limited to a few agro commodities which are well traded. This study could have been extended to the other thinly traded commodities. This study has also taken only near month futures contracts as it contains more information but the same could have been studied by taking far month contracts also. Originality/value The present study attempted to understand the conjugated effects of seasonality, structural breaks and spillover on volatility of commodity markets which is not apparent in the previous studies. This study has also employed methodological rigor to identify the breaks in the variance equation. In addition to this it has also investigated whether Indian commodity futures markets are informationally more efficient than the spot markets.
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Cai, Hongbo, and Yuanyuan Song. "The state’s position in international agricultural commodity trade." China Agricultural Economic Review 8, no. 3 (September 5, 2016): 430–42. http://dx.doi.org/10.1108/caer-02-2016-0032.
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Purpose The purpose of this paper is to apply an analysis of complex networks to empirically research international agricultural commodity trade and countries’ trading relations. The structure of global agricultural commodity trade is quantitatively described and analysed. Design/methodology/approach Based on statistical physics and graph theory, the research paradigm of a complex network, which has sprung up in the last decade, provides us with new global perspective to discuss the topic of international trade, especially agricultural commodity trade. In this paper, the authors engage in the issue of countries’ positions in international agricultural commodity trade using the latest complex network theories. The authors at first time introduce the improved bootstrap percolation to simulate cascading influences following the breaking down of bilateral agricultural commodity trade relations. Findings On a mid-level structure, countries are classified into three communities that reflect the structure of the “core/periphery” using the weighted extremal optimisation algorithm and the coarse graining process. On a micro-level, countries’ rankings are provided with the aid of network’s node centralities, which presents world agricultural commodity trade as a closed, imbalanced, diversified and multi-polar development. Originality/value The authors at first time introduce the improved bootstrap percolation to simulate cascading influences following the breaking down of bilateral agricultural commodity trade relations.
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Peterson, Julia C. "Online Agricultural Commodity Trade Information Sources." Journal of Agricultural & Food Information 1, no. 1 (May 25, 1993): 123–29. http://dx.doi.org/10.1300/j108v01n01_14.
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Schmitz, Andrew, Hartley Furtan, and Troy G. Schmitz. "Agricultural Policy: High Commodity and Input Prices." Agricultural and Resource Economics Review 38, no. 1 (April 2009): 18–35. http://dx.doi.org/10.1017/s1068280500000162.
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Because of high commodity prices, beginning in 2006, subsidies to farmers in the United States, the European Union, and Canada have been reduced significantly. However, significant losses have been experienced by the red meat sector, along with escalating food prices. Because of rising input costs, the “farm boom” may not be as great as first thought. Ethanol made from corn and country-of-origin labeling cloud the U.S. policy scene. Higher commodity prices have caused some countries to lower tariff and non-tariff barriers, resulting in freer commodity trade worldwide. Policymakers should attempt to make these trade-barrier cuts permanent and should rethink current policy legislation to deal with the possibility of a collapse of world commodity markets. Agricultural commodity prices have dropped significantly since early 2008.
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Ergun, Huseyin. "YELLOW SUKUK UNVEILED: HARNESSING AGRICULTURAL COMMODITY TRADE FOR ISLAMIC FINANCE AND PARADIGM SHIFT IN COMMODITY EXCHANGES." Al Qasimia University Journal of Islamic Economics 3, no. 1 (June 12, 2023): 81–114. http://dx.doi.org/10.52747/aqujie.3.1.229.
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Traditional methods dominate agricultural commodity trade, leading to occasional supply surpluses due to inherent periodicity. The lack of adequate storage systems further compounds the challenge, resulting in price volatility and market instability. To address these issues, introducing licensed Warehousing and a Specialized Commodity Exchange system offers an opportunity to integrate agricultural commodity trade with global markets and establish a robust market structure. This integration involves transforming standardized agricultural products held in licensed warehouses into Electronic Warehouse Receipts (e-WhR), which can serve as essential tools for production, consumption, and investment instruments. Moreover, the innovative concept of "Yellow Sukuk" is introduced, representing a groundbreaking financial instrument that can be utilized within the framework of Islamic Capital Markets alongside conventional bank loan transactions. This study examines the evolution of agricultural commodity trade, spot transactions conducted in Commodity Exchanges, and the fundamental aspects of transactions. By embracing these advancements, the agricultural sector can enhance its efficiency, liquidity, and overall market depth while embracing the groundbreaking potential of Yellow Sukuk.
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REZNIK, Nadiia, and Аnatolii YARMOLIUK. "ANALYSIS OF PROVIDING FUTURES TRADE OF AGRICULTURAL PRODUCTS IN UKRAINE." Ukrainian Journal of Applied Economics 5, no. 4 (December 2, 2020): 139–47. http://dx.doi.org/10.36887/2415-8453-2020-4-15.
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Introduction. The basis for the advancement of the rank is legislative and normative, legislative acts, regulations, instructive materials, informational staff, and special literature. The gross scientific method for the analysis and synthesis, induction and deduction, convergence from the abstract to the concrete were used, as well as specific methods of analysis: grouping, ruling, systematic, etc. The purpose of the article is to justify the development of futures trading and its introduction into the sale of agricultural products in Ukraine in modern conditions. Results. This article proves that an important condition in ensuring the transparency of pricing and sales of agricultural products in Ukraine should be the creation of an exchange market for commodity derivatives for agricultural products. Low volumes of trade in forward contracts in Ukraine make it impossible for small and medium-sized commodity producers to understand better the essence of trade in commodity derivatives for agricultural products. Analysis of the state of the commodity exchange market in the country shows that quantitative and qualitative indicators do not match in Ukraine, according to the State Statistics Committee at the beginning of 2014. 586 commodity exchanges were registered (excluding stock exchanges), which is 95 times more than in 1992 (62 exchanges) and almost 2 times more than in 1999 (300 exchanges). Among these universal exchanges – 107, commodity and commodity exchanges – 391 exchanges, agro-industrial – 25, others – 39. It is highlighted that the Ukrainian stock market has not taken its rightful place as required by the market economy. It was created without a clear legal framework, weak understanding and uncertain behavior of the state in relation to exchange activities, as well as the absence of a state regulator that would coordinate, supervise and organize the work of commodity exchanges. Conclusions. It is proved that the increase in sales of agricultural products on commodity exchanges has been largely achieved through the registration of export contracts on accredited exchanges in recent years, which had no practical impact on the pricing process and stabilization of the agricultural market. Keywords: futures, futures market, agricultural products, agricultural sector, stock market, world market.
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Khan, Shujauddin, and Aftab Alam. "Trends in India's Agricultural Commodity Trade with China." BULMIM Journal of Management and Research 1, no. 2 (2016): 133. http://dx.doi.org/10.5958/2455-3298.2016.00015.5.
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Swire-Thompson, A. J. "ZIMBABWE—AGRICULTURAL COMMODITY POLICY, FOOD SECURITY AND TRADE." Agrekon 31, no. 4 (December 1992): 157–60. http://dx.doi.org/10.1080/03031853.1992.9524681.
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Woźniak, Marek. "Indian steel: a forgotten commodity of the great trade routes." Polish Archaeology in the Mediterranean XXIV, no. 1 (February 28, 2016): 709–26. http://dx.doi.org/10.5604/01.3001.0010.0124.
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Among numerous exotic goods carried along ancient trade routes the so-called Seric iron is one of the most mysterious and least known. According to ancient sources, it was imported from a half-mythical land of Serica. New discoveries in southern India suggest it should be identified with the kingdom of Chera (in modern Tamilnadu) which existed between 300 BC and AD 300. This metal, one type of which was the patterned Damascene steel, was used mainly in the production of high-quality weapons. From about the 3rd century AD local production centers of crucible steel emerged also outside India.
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Chryniewicz, Łukasz, and Michał Wojtaszek. "COMPREHENSIVE ANALYSIS OF BRICS COUNTRIES AGRICULTURAL COMMODITY TRADING." Annals of the Polish Association of Agricultural and Agribusiness Economists XX, no. 4 (August 23, 2018): 29–34. http://dx.doi.org/10.5604/01.3001.0012.2937.
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Agricultural commodity trading plays an important role in the global trade. The main reason of this article is to present changes in agricultural commodity trading that had appeared between 2004-2014 for BRICS countries. Furthermore, it examines how would the agricultural commodity trading would look if we would treat BRICS countries as one economic block. Descriptive statistics had been used by presenting an aggregated agricultural commodity trading data to elaborate this research problem.
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Frechette, Darren L. "The Potential Value of Agricultural Trade Options." Agricultural and Resource Economics Review 32, no. 2 (October 2003): 232–43. http://dx.doi.org/10.1017/s1068280500006006.
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Hedgers located far from organized commodity exchanges suffer a mismatch between their local prices and exchange prices. Futures and options traded on the exchange may still be valuable to distant hedgers, but only to the extent that basis risk is small. Forward contracting allows hedgers to manage risk using a local delivery price, but the Commodity Futures Trading Commission has long banned the sale of off-exchange options, limiting the opportunities available to hedgers. Recently, agricultural trade options (ATOs) have been introduced as over-the-counter option products designed specifically for hedgers. To date, ATOs have found little interest from potential sellers, but the potential demand for these options may be substantial. This study develops a methodology for measuring the potential value of ATOs. It describes and quantifies the demand for corn ATOs by dairy farms in Pennsylvania and estimates the value these farms might place on ATO contracts offered locally.
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Maitra, Debasish. "Do volume and open interest explain volatility?" Journal of Financial Economic Policy 6, no. 3 (July 29, 2014): 226–43. http://dx.doi.org/10.1108/jfep-04-2013-0012.
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Purpose – The purpose of the paper is to study the explainability of expected and unexpected trade volume and open interest as information flow, and the asymmetric effects of unexpected shocks to the information flow on volatility in Indian commodity markets. Design/methodology/approach – After having dissected into expected and unexpected components, the effects of trade volume and open interest on volatility are tested. A new interaction term is also added to measure asymmetry. Four commodities, namely, cumin, soy oil and pepper in food commodity category and guar seed in non-food commodity category are selected for the present study. These four commodities are selected based on their economic and trading importance, i.e. weight in the index and trading volume (liquidity). Findings – It is mostly found that unexpected volatility is positively related to the volatility, and the effect of the unexpected component is more than the expected component of the trading volume. The expected open interest is negatively related to volatility while the unexpected open interest is found to be positively related in all the commodities. The effects of unexpected component are higher than the expected open interest. The effects of positive unexpected shocks to the trade volume are more than those of negative unexpected shocks. The evidence of asymmetry in unexpected shocks to open interest is inconclusive. However, the inclusion of volume of trade and open interest could not vanish away the volatility. This indicates that the trading volume and open interest are not the variable with mixed distribution. Thus, it contrasts the assumption of mixed distribution hypothesis, and they do not proxy the flow of information. Practical implications – It is the unexpected information flow that matters more than the expected one. Positive unexpected shocks to trade volume are more influential than the negative shocks. However, trade volume and open interest are not good proxy of information flow in the Indian commodity markets. This study would definitely broaden the horizon of managers and policymakers to understand the volatility better. Originality/value – The paper is unique in terms of understanding the effect of expected and unexpected trade volume and open interest and the asymmetric effects of unexpected shocks to volume and open interest in the Indian commodity markets.
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Shashi Gupta, Himanshu Choudhary, and D. R. Aggarwal. "Efficiency of Indian Commodity Market: A Survey of Brokers’ Perception." Journal of Technology Management for Growing Economies 7, no. 1 (April 26, 2016): 55–71. http://dx.doi.org/10.15415/jtmge.2016.71003.
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The present study documents the finding of a survey of brokers’ perception pertaining to the recently introduced commodity derivatives market in India. The survey results show the brokers’ assessment about trading/marketing activities and their perception of the benefits and concerns about commodity derivatives. It also throw some light on the perception of brokers about the efficiency of Indian commodity derivatives in performing the functions of price discovery, hedging effectiveness and volatility dynamics. The survey results show that high net worth individual are contributing significantly in the trade volume of commodity derivatives. Interestingly, retail investors are also emerged as the significant contributor in total turnover of brokers. Survey results exhibit that price discovery and hedging effectiveness functions are well performed by all the commodity futures except the energy commodities futures. Energy commodities, being the most volatile commodities, are perceived as having less hedging effectiveness as compared to others. Brokers are assenting on the high to moderate impact of open interest, volume and time to maturity on the volatility of the commodity futures derivatives.
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Thompson, Gary, Ricardo Aḿon, and Philip L. Martin. "Agricultural Development and Emigration: Rhetoric and Reality." International Migration Review 20, no. 3 (September 1986): 575–97. http://dx.doi.org/10.1177/019791838602000302.
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The untested premise of trade liberalizing U.S. development programs such as the Caribbean Basin Initiative is that commodity trade can substitute for international labor migration. Analysis of U.S. tomato producing regions in Sinaloa, Mexico and Florida suggests that the effect of trade liberalization of international labor migration is uncertain.
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BRAGINA, Elena A. "INDIAN-THAI TRADE RELATIONS: A VIEW FROM INDIA." Southeast Asia: Actual Problems of Development, no. 1 (54) (2022): 160–67. http://dx.doi.org/10.31696/2072-8271-2022-1-1-54-160-167.
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Neighboring countries India and Thailand, different in territory, population and GDP, are not the main partners for each other in mutual trade, only 1.5–3.1% in the total exports of each of them. However, both countries consider it important to develop trade with their neighboring countries and see mutual interests in many of its positions. India has signed common free trade agreement with ASEAN and regional free trade agreement with Thailand. The article presents an analysis of the development of exports / imports of India and Thailand in 2011-2021, the main commodity flows are presented. The article also noted the aspects of export/import of commercial services representing almost half of the volume of foreign trade are considered, also noted the rapidly expanding e-commerce in volume.
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Zharun, Olena, Mykola Korotieiev, Oleksandr Nepochatenko, and Oksana Tupchiy. "ORGANIZATION OF FUTURE EXCHANGE TRADE IN AGRICULTURAL PRODUCTS IN UKRAINE." Development of Management and Entrepreneurship Methods on Transport (ONMU) 76, no. 3 (2021): 92–103. http://dx.doi.org/10.31375/2226-1915-2021-3-92-103.
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In this article was found that the Ukrainian stock market did not take the right place as required by the market economy. It was created without a clear legal framework, weak understan-ding and uncertain behavior of the state in relation to exchange activities, as well as the absence of a state regulator that would coordinate, supervise and organize the work of commodity exchanges.It should be noted that the increase in sales of agricultural products on commodity exchanges in recent years has been largely achieved through the registration of export contracts on accredited exchanges, which had no practical impact on the pricing process and stabilization of the agricultural market.Proven low activity of participants in the use of forward contracts in exchange trade leads to restraint of the development of exchange trade in commodity derivatives for agricultural products. The main directions of development of the exchange agricultural market, which should be: stabilization of the political and economic environment in the country; improvement of the mechanism of regulation of the domestic exchange agricultural market; creation of favorable organizational and legal conditions for attracting foreign speculative capital; increasing the financial stability of agricultural market participants; availability of an effective exchange infrastructure of commodity markets; providing access to the electronic information field; development of requirements for licensing of professional participants of the exchange commodity market; creation of the necessary level of material and technological support of domestic commodity exchanges.The process of implementation of the latter should take place in stages and requires the creation of the above organizational and economic conditions.Theoretical and methodical bases of formation of organizational and economic model of effective functioning of the commodity exchange market of Ukraine aimed at effective regulation of the wholesale market of agricultural products, as a whole, and creation of system of self-regulation of such market which will provide activation of turnover of pro-ducts and money at exchange auctions economic conditions of the shadow market, will contribute to thenecessary increase in efficiency of production and sale of products on the stock market, staff elimination of the agricultural sector and the creation of a system of effective state regulation of market prices for agricultural products, food and consumed by the agricultural sector material and technical resources circulating in the wholesale market and the formation of market infrastructure for effective management of reproduction and sale of marketable products.Keywords:futures; futures trading; agricultural products; world market; grain; stock market.
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Singh, J. P., and S. K. Goyal. "Indian Agricultural and Processed Food Products." Foreign Trade Review 40, no. 1 (April 2005): 49–69. http://dx.doi.org/10.1177/0015732515050103.
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Wheat, jaggery & confectionery, animal casings, dried & preserved vegetables, fresh vegetables, floriculture were the main source of export earnings during last decades. The extent of growth in value terms has been invariably higher than the amount of growth in quantity terms except in case of jaggery & confectionery, alcoholic & beverages, and milled products. Wheat topped the list both in export earnings and quantity exported with 63.10 per cent and 53.08 per cent annual growth rates, respectively. Instability indices for both export earnings and quantity exported, were highest for animal casings (183.75%) and (172.90%) indicating that animal casing was most vulnerable commodity in terms of export earnings and quantity exported. Guar gum recorded least instability (9.73%) in terms of quantity exported while export earnings instability was observed least (9.13%) in mango pulp. The instability has been by and large higher for quantity exported than the export earnings with some exceptions like guar gum, dried nuts, fresh grapes, buffalo meat, groundnuts, other cereals. In terms of value of exports, the year 2001-02 was a year of export earnings diversification as evidenced by very low value of Herfindahl (0.02), Hirschmann (0.15), and Gini-Hirschmann (0.30) measures, respectively. In terms of quantity exported, year 2000-01 observed highest diversification while 2002-03 recorded commodity concentration (reduced diversification) in quantity exported.
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Langley, Suchada V., Marcelo Giugale, William H. Meyers, and Charles Hallahan. "International Financial Volatility and Agricultural Commodity Trade: A Primer." American Journal of Agricultural Economics 82, no. 3 (August 2000): 695–700. http://dx.doi.org/10.1111/0002-9092.00063.
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Siegel, Benjamin. "Beneficent destinations: Global pharmaceuticals and the consolidation of the modern Indian opium regime, 1907–2002." Indian Economic & Social History Review 57, no. 3 (June 12, 2020): 327–62. http://dx.doi.org/10.1177/0019464620930886.
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This article traces the twentieth-century ‘afterlife’ of Indian opium, following the global trajectories of the commodity beyond the decades of prohibition, when its international trade was broadly viewed as being in terminal decline. The article demonstrates how opium from Malwa, Bengal and Bihar was brought into the ambit of Western pharmaceuticals during the two World Wars. In spite of the scepticism of temperance-minded nationalists, it foregrounds the crop’s regular integration into these commodity chains in the early decades of Indian independence and its ascent as the key raw material in the USA’s expanding painkiller market. Yet this putative success, this article suggests, was temporary, and Indian opium would fuel a burgeoning domestic narcotics crisis, before being felled, again, by pharmacological, botanical and geopolitical transformations at the century’s end. In offering a history of Indian opium which stretches beyond the traditional ending point offered by prohibition, this article locates opium within a broader connective history of Indian commodities, demonstrating how one particularly electric commodity was integrated within a widening purview of Western economic power, and American pharmaceutical hegemony in particular.
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Svatoš, M., and L. Smutka. "Development of agricultural foreign trade in the countries of Central Europe." Agricultural Economics (Zemědělská ekonomika) 56, No. 4 (April 22, 2010): 163–75. http://dx.doi.org/10.17221/22/2010-agricecon.
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This paper analyses the development of agricultural foreign trade in Austria, Hungary and the Czech Republic with the aim of uncovering the changes that have impacted the Central European agricultural trade over the ten year period (1999–2008). It issues from the results of the analysis of agricultural trade in the aforementioned countries, which has changed dramatically in terms of the commodity structure, the territorial structure and primarily the value structure. The main changes to have caused most of the changes to the individual characteristics of agricultural foreign trade in the particular countries under analysis are the process of the EU enlargementy, the adoption of obligations to ensue from the EU membership and the concentration in the internal market of the EU countries. We can see the actual changes in the commodity and territorial structure of the trade carried out in the individual countries under analysis. The changes which have occurred resulted in a dominant share of the member countries of the EU 27 in the agricultural trade of the individual countries under analysis.
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Tian, Jinjin, Yulin Zhu, Thi Bich Nhi Hoang, and Benjamin Kofi Tawiah Edjah. "Analysis of the competitiveness and complementarity of China-Vietnam bilateral agricultural commodity trade." PLOS ONE 19, no. 4 (April 25, 2024): e0302630. http://dx.doi.org/10.1371/journal.pone.0302630.
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Vietnam’s agricultural exports to China have remained strong, with the country maintaining its position as the top destination for Agri-products. This article primarily utilizes the Revealed Comparative Advantage (RCA) Index, and Trade Complementarity (TC) index to examine the trade comparative advantage, and the complementary of twenty major agricultural products between China and Vietnam from 2012 to 2021. The study results showed that Vietnam and China frequently exchange agricultural products. Vietnam has more stronger competitiveness than China in terms of agricultural products. China’s exports to Vietnam were highly complementary to Vietnam’s imports in category 0 whiles Vietnam’s exports to China showed strong complementarity with China’s imports in category 2. This paper analyzes the complementarity and comparative advantages of agricultural trade between China and Vietnam, and proposes informed suggestions for policy-making to promote agricultural trade between the countries. The proposed suggestions aim to expand agricultural trade between the two countries, reduce the trade imbalance, and achieve mutual benefit and win-win results.