Kisan Sabha – Page 26 – हर कदम हर डगर, आपका हमसफर

Indian farmers being extra cautious with their wheat crops after last year’s lessons

Synopsis

Several parts of India are witnessing unusually warm weather for this time of the year, including in the biggest wheat-growing areas. The plants are reaching maturity or close to flowering, making them very sensitive to heat. High temperatures can result in output losses, the weather office has warned.

After an extraordinary heat wave smothered much of India last year and forced the country to restrict wheat exports, farmers are closely guarding their fields as the threat of another extreme weather event looms.

Several parts of the country are witnessing unusually warm weather for this time of the year, including in the biggest wheat-growing areas. The plants are reaching maturity or close to flowering, making them very sensitive to heat. High temperatures can result in output losses, the weather office has warned.

India’s wheat harvest is the biggest globally after China. It’s a staple in the local diet and important for food security. Prolonged heat could cut production for a second straight year, hurting efforts to control local food costs. It also means the country will likely retain export curbs, which will keep the world market tight amid dry weather in the US and the ongoing war in Ukraine.

Keeping food costs in check is a top priority for Prime Minister Narendra Modi before polls in several states this year and the general election in 2024. State reserves of wheat used to supply the food program for the poor have shrunk to the smallest for this time of year since 2017, underscoring the tight supply.

While India’s crop is in good condition for now, farmers need to water their fields frequently to prevent any yield losses, said Gyanendra Singh, head of the Indian Institute of Wheat and Barley Research. They’re also advised to look out for pests and diseases that tend to thrive when the weather warms.

The farm ministry forecasts wheat production will hit a record high this season. Despite that, domestic prices have stayed elevated. The average retail cost of wheat is about 19% higher than a year ago while flour prices have jumped 20%, according to the consumer affairs department. Officials have announced the sale of 5 million tons of wheat from state reserves to cool prices.

With hot weather set to prevail, India has set up a panel to monitor the impact of rising temperatures on the wheat crop. Singh advised farmers to spray their crop with potassium chloride, a type of fertilizer, if temperatures rise above 30C (86F) in the day or 15C at night.

The future of precision agriculture is with drone technology

Precision agriculture (PA) is a method of managing agriculture that uses IT and computers to ensure that soil and plants get exactly what they want for optimum health and productivity.

PA aims to safeguard the environment, the economy, and sustainable development.

Drones for modern agriculture

Undoubtedly, drones have advanced considerably since their early days as toys. Drones can more accurately connect and integrate into large-scale drone systems because of new sensors and communication technologies.

This makes it possible to communicate and act at a level unsurpassed by conventional methods.

Drones’ Importance in Agriculture

Drones gather raw data and transform it into informative data. As a result, they may be utilized in a variety of drone farming applications, such as monitoring the following factors:

Crop health: Insect damage and pest infection-related colour changes
Vegetation indices: Leaf area, yield, phenology, anomaly identification, and efficacy of treatment
Plant height – Density and height of plants
Plant scouting: Plant stats, stand information, compromised plots, and planter skips.
Water needs: Water-stressed areas of the field or orchard that need to be watered
Analysis of the nutrients in the soil for managing plant nutrients

Major Tasks that Drones can Perform

Analysis of the soil and field: Farmers may learn more about the soil characteristics of their property thanks to a drone survey. Data collected by multispectral sensors can be utilized for nitrogen management, irrigation, field soil studies, and seed planting patterns.

Planting: One of the more recent and uncommon uses of drones in agriculture is seed planting. Drone planting can assist you in reaching locations that can be replanted without putting workers in risk.

Crop spraying: In certain places, the use of drones to provide spray treatments is already widespread. Drone sprayers for agriculture can access places that are hard to access, such as steep tea plantations at great altitudes.

Crop monitoring: The vastness of the fields and the ineffectiveness of crop monitoring are the largest difficulties lack farming. Drones can give accurate field mapping with elevation data that enables farmers to identify any field anomalies.

Irrigation: Drones using hyperspectral, multispectral, or thermal sensors may identify fields that require irrigation by identifying dry or deficient portions of the field.

Check Crops health: It’s crucial to evaluate the condition of your crops and look for bacterial or fungal infestations on your trees.

Direct Advantages of Using Drones

Greater Production – The farmer may raise production potential through thorough irrigation planning, sufficient crop health monitoring, increased understanding of soil health, and environmental change adaption.

Effective and Adaptive Techniques – The use of drones enables farmers to regularly obtain information on their crops and supports the development of more efficient agricultural techniques.

Increased Agricultural Safety- It is safer and more convenient for farmers to use drones to spray pesticides in hard-to-reach terrain, polluted places, taller crops, and power lines.

Faster data for rapid decision-making – Farmers can interpret data from drone surveys with confidence, enabling them to make snap decisions without second-guessing and saving time on crop scouting.

Less resource wastage – Drones in agriculture allow for the best possible use of all resources, including seeds, water, fertilizer, and pesticides.

99% Accuracy rate – The drone survey aids farmers in mapping the soil, calculating the precise size of the field, and dividing up the various crops.

Insurance claims-friendly – Farmers use the information gathered by drones to submit claims for crop insurance in the case of damage. They examine the risks and losses associated with the land while being insured.

Proof for insurance providers – Agricultural insurance businesses employ drones to collect data that is accurate and efficient. To determine the right monetary compensation for the farmers, they keep track of the harm that has been done.

Conclusion

Numerous large-scale agribusiness firms are starting to rely heavily on drones. Their firm would cease to exist without drones, and they wouldn’t see the same return on investment that they do when they use drones. Drones can maximize agricultural output while utilizing significantly fewer people, resources, and investments by making optimal use of the agricultural resources already in use.

Basically drones are the future.

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Agri and food processing sector registers double-digit growth in Andhra Pradesh

The state of Andhra Pradesh showcased its rich natural resources, large investments in infrastructure, land bank, and intensive reforms in rules and regulations at successful investors meeting held in Bengaluru. These efforts, taken together, position Andhra Pradesh as the state where abundance meets prosperity. The event is one of many such meets being organized in the run-up to the Global Investors Summit on March 3^rd-4^th 2023 in Visakhapatnam.

The agriculture and food processing industry in the state offers large opportunities with a double-digit growth rate. The GVA of the Agriculture & Allied Sector for the year 2021-22 is estimated to be INR 2 Lakh Cr., with a growth rate of 11.27%.

The state ranks first in India in aquaculture accounting for 24% of the nation’s fish production, second in the production of paddy, maize, and groundnut, and fourth in milk and meat production.

Important steps have been taken by the government to boost the industry. 10,788 YSR Rythu Bharosa Kendras have been established as “One Stop Shops” for a variety of agricultural and related services. The state was ranked first in registered food processing units during the annual Survey of Industries 2019–20 due to its ease of doing business. The state has been ranked first in the total value of trade conducted on the e-National Agriculture Market (e-NAM) in FY 2019–20 thanks to government facilitation and technology deployment.

Speaking on the occasion Mr. Gudivada Amarnath, Minister for Industries, Infrastructure, Investment & Commerce, IT, Handlooms & Textiles highlighted the state’s export potential. The honorable minister said, “According to LEADS Report 2022, the state’s exports increased by 15.31% from the previous year in 2021–2022, classifying it as “Achievers” in the Coastal States. With the completion of new ports and also further development of infrastructure for the last-mile connectivity, the state’s share in exports can reach up to 10% of India’s total exports.”

Addressing the investors Mr. Buggana Rajendranath, Minister for Finance, Planning, Commercial Taxes, Skill Development, Training & Legislative Affairs assured the investors of the fast-paced implementation of projects in the state. “We strongly believe reducing the time to start a business will have a significant impact on the manufacturer’s profitability. The state is building numerous plug-and-play facilities which will have ready-built factory sheds with quality power and water supply and help speed up setting up of manufacturing units,” said the honorable minister.

Mr. Amarnath also added that in the last 3.5 years, the state has approved investments to the tune of Rs. 1.9 lakh Crore. “That would go on to create employment for around 90,000 people in the state in the future,” he said.

Key functionaries from various departments, ministries, and state government institutions had an open interaction with the investing community in Bengaluru. Promising to handhold potential investors and facilitate the fastest turnaround time the presentations showcased the present and upcoming infrastructure and the conducive policy environment of the state.

Manufacturing, food processing, ports, IT and Electronics, handlooms, and textiles sectors attracted significant interest at the event. Andhra Pradesh is India’s gateway to the southeast with its 974 km long coastline, the second longest in the country, 6 existing ports, and 4 upcoming ports. However, it has also emerged as the fastest-growing state in India, as per the number released so far, with double-digit growth of 11.43% in 2021-22. The state has embarked on a rapid growth path under the able leadership of Sri Y.S. Jagan Mohan Reddy, Honourable Chief Minister. Thanks to the governance reforms and formulation of investor-friendly policies by the government, the state has emerged on top in terms of ease of doing business (EoD) for three consecutive years.

Consistent improvement in the governance framework to create hassle-free investing is augmented by hard infrastructure as three of the country’s eleven industrial corridors are being built in Andhra Pradesh alone. The improvements have been duly recognized and the state has received various awards over the last year alone.To name a few the LEADS award for logistics 2022, the Inertia Award for Energy 2022, the ET award for port-led, and the infrastructure project 2022.

NBHC creates Direct Procurement Centers (DPC’s) in Bihar, Rajasthan, and Madhya Pradesh

National Bulk Handling Corporation (NBHC), a leading Agritech company offering top-notch integrated services in post-harvest agri-ecosystem, today announced the launch of three Direct Procurement Centres (DPC’s) at Bundi (Rajasthan) and Sasaram (Bihar) for Paddy and Chhindwara (Madhya Pradesh) for Maize.

NBHC commenced Direct Farmer Procurement in the last kharif season to connect farmers directly with end users i.e., processors/exporters by creating these DPCs as pilot projects and has successfully procured from 700+ Farmers. In the Chhindwara district in MP, NBHC has partnered with Krish-e, the farming as a service vertical of the Mahindra Group for enabling the procurement of Maize directly from farmers. The company has achieved a milestone of having procured over 38,000 quintals of Rs. 103 Million of Gross Merchandise Value (GMV) in 3 commodities namely Paddy (Basmati), Paddy (Sonam & Katarni), and Maize.

In 2021, NBHC expanded its services through ‘Krishi Setu’, an e-Market platform for providing end-to-end digitized services in the post-harvest agri value chain ecosystem. Krishi Setu is committed to providing access to the largest network of agri-commodity sellers, buyers, and lenders across the country. In the FY 2022-23, NBHC has transacted 1 million quintals valued at Rs. 2,650 Million of GMV.

Commenting on this milestone achievement, Mr. Deepak Kumar Singh, SVP & Business Head – Agri Commerz, NBHC said, “The changing agriculture policies paradigm is creating newer opportunities to serve farmers. As a trusted partner, it is our endeavor to positively impact farmers’ income by maintaining transparency in weighment, quality assaying, and enabling market linkages and financing options in our newly created DPCs in Bihar, Rajasthan, and Madhya Pradesh. We have also introduced the concept of “Kisan Saathi”, our local support system in these designated DPCs for providing logistics support to farmers for bringing in their produce at the DPCs. To promote village-level entrepreneurs as Kisan Saathis, we are proudly engaged with a total of 50+ Kisan Saathis at these DPCs and wish to further augment the entrepreneurship ecosystem.

We are delighted to share that our DPCs have received an amazing response from farmers, which demonstrates our commitment to empowering farmers by opening a gateway to lucrative deals and addressing their unmet needs. This represents a significant milestone for NBHC as we continue to grow and further our expansion plan of creating around 100 DPCs in the FY 2023-24. The combined power of our geographic spread, SOP-driven robust operations, and easy access through Krishi Setu promises to make NBHC an Agritech Powerhouse in the near future”.

We thank our anchor buyers (largely processors), for their extended support and we further aim to connect with a greater number of processors and corporates to join us in our effort to enhance the farmers’ income, by directly procuring through NBHC – DPCs.

G-20 members stressed on need to increase climate finance to help farmers take up adaption measures: Agriculture secretary

The three-day event of the first G20 Agriculture Deputies Meeting of the Agriculture Working Group (AWG) concluded on Wednesday.

ng of India’s G20 presidency, on a street in Mumbai, on December 15, 2022. | Photo Credit: Reuters

The G-20 members stressed on the need to increase climate finance to help farmers take up adaptation measures, agriculture secretary Manoj Ahuja said on Wednesday.

Addressing media on the concluding day of the G20 first Agriculture Deputies’ Meeting here, Mr. Ahuja said: “Climate finance was one of the issues which was discussed. The members felt that there was a need for an environment for increasing the climate financing in terms of financing farmers for adaptation measures.” The member countries also suggested that farmers can be incentivised if they are adopting climate friendly farming or green agriculture. One of the ways was carbon credit, he said.

The G20 nations also shared their experience on impact of climate change in agriculture, he added.

The three-day event of the first G20 Agriculture Deputies Meeting of the G-20 members stressed on need to increase climate finance to help farmers take up adaption measures: Agriculture secretary (AWG) concluded on Wednesday.

It deliberated on four key priority areas: food security and nutrition; sustainable agriculture with climate smart approach; inclusive agriculture value chain and food supply system; and digitisation of agriculture transformation.

The secretary said the next meetings of the G20 agriculture working group will be held in Chandigarh, Varanasi and Hyderabad.

He also said that 10 more countries will be invited in future meetings on agriculture.

Strategies to make agritech platforms user-friendly for farmers

In India, the agricultural environment is the main source of income. Most of its rural residents—nearly 70%—rely on agriculture for their primary subsistence. But even after roughly 75 years of independence, our farmers continue to face a number of difficulties, including the lack of capital inputs and access to high-quality seeds, expensive fertilizers, manures, unpredictable weather, adequate irrigation systems, adequate mechanization, soil erosion, and sound marketing infrastructure.

The good news is that, like in every other industry, technological development in agriculture has made it possible for farmers and other stakeholders to address current issues as well as new ones. Farmers in India now have the opportunity to combine arduous labor with clever strategies thanks to the emergence of agritech platforms, which are revolutionizing the country’s agricultural ecology. But farmers still need a lot of time to catch up with these cutting-edge technologies. This naturally raises the question of how current agritech platforms might bring farmer-focused services to support modern farming.

In light of this, here are four important ways agritech platforms may be made more user-friendly for farmers.

1. Farmer-friendly apps for mobile devices

Unquestionably, cell phones are one of the most straightforward but clever methods for agritech platforms to link farmers with cutting-edge technology. These platforms give farmers (sellers) and consumers the ability to conduct transactions without the use of a middleman by utilizing mobile applications. This ensures complete transparency and gives farmers the opportunity to get the true value of their harvests without a middleman taking a substantial cut as fee. To further guarantee that the entire transaction is safe, many applications also offer a secure payment channel.

2. Striking affordability for everyone

Given that many farmers in India are from rural areas, finding affordable access to the greatest resources is a huge problem for them. At this point, developing agritech platforms are crucial for their growth. Agritech platforms may aid farmers in increasing crop productivity by offering low-cost agricultural inputs including seeds, fertilizers, and herbicides. Similar to how they offer economical or on-rent agricultural tools like sickles and cultivators, these platforms may help eliminate manual labor and boost productivity.

3. Simple informational strategies

The main barrier to communication between farmers and agritech platforms, who are the main players in the agricultural ecosystem, is accessibility. Even though agritech platforms incorporate cutting-edge technology, farmers cannot use these features. Agritech platforms should thus propose simple approaches to help farmers comprehend the significance and benefits of smart agricultural technology in order to fill this need gap. These platforms may increase farmers’ participation and successfully address the issues that arise in day-to-day farming by providing them with the necessary knowledge about agricultural technology and practices.

4. Making use of social media to increase engagement

Social media, the quickest, most accessible, and most rapid method of digital communication, might be crucial for agritech platforms looking to interact with farmers. Agritech platforms may develop a one-stop location for niche agricultural communities to acquire trustworthy recommendations from industry experts by utilizing the interactive social media interface. This will be similar to their immediate social circle but more trustworthy, modernized, and knowledgeable about contemporary agritech.

In conclusion

Indian agritech companies are growing at a 25% annual rate. For the 90 to 150 million Indian farmers to remain viable, profitable, and growing, these enterprises are essential. However, it would be challenging for farmers and agritech to flourish together until agritech platforms start prioritizing user-friendly ways instead of only innovation.

As a result, it is suggested that agritech platforms pay attention to the aforementioned advice and construct more farmer-focused platforms that function from the bottom up to guarantee the comprehensive growth of the agricultural sector.

India appeals to G20 nations to adopt ‘3S’ formula in agriculture for tackling food security concerns

Synopsis

The 3S strategy is ‘smart’ and ‘sustainable’ agriculture which should ‘serve’ all, he said. For smart agriculture, Scindia emphasised on adopting drone and other new technologies for increasing the crop yield. For sustainable agriculture, farmers should focus on achieving higher yields, use better inputs besides focusing on advanced technologies and marketing, he said.

India on Tuesday called on G20 nations to adopt ‘3S’ strategy – Smart, Sustainable and Serve – for the agriculture ecosystem in order to address the global food security concerns. Addressing media on the sidelines of the first G20 Agriculture Deputies’ Meeting, Union Minister Jyotiraditya Scindia said agriculture for India has always been a priority and for the world it has fully come to the fore now.

“Our thinking is we have to adopt 3S strategy for the agriculture ecosystem to make a mark on the world food system,” Scindia said.

The 3S strategy is ‘smart’ and ‘sustainable’ agriculture which should ‘serve’ all, he said. For smart agriculture, Scindia emphasised on adopting drone and other new technologies for increasing the crop yield.

For sustainable agriculture, farmers should focus on achieving higher yields, use better inputs besides focusing on advanced technologies and marketing, he said.

Stating that India has made a significant progress in agriculture, the minister said it is the top nation in the world in milk production, second in vegetables and fruits and third in foodgrains production.

India’s foodgrains output has risen from 265 million tonne to 315 million tonne in the last eight years. The budgetary outlay for the farm sector has been increased by four-and-half times to USD 10.5 billion (around Rs 86,700 crore) in the last eight years, he added.

Scindia, the union minister for civil aviation and steel, also mentioned that his home state Madhya Pradesh too has made a significant progress in the farm sector and is a major producer of soya and garlic.

The state’s foodgrains output increased almost 4 times to 629 lakh tonne from 165 lakh tonne in last 18 years. Irrigation has improved by 50 per cent in the state, he said.

“Based on the outcome of the discussion, India and G-20 nations will provide a new road map for agriculture to the world,” he added.

The first Agriculture Deputies Meeting of the Agriculture Working Group (AWG) under India’s G20 presidency is being held here from February 13-15.

The second day of the meeting will continue deliberations on four key priority areas: food security and nutrition; sustainable agriculture with climate smart approach; inclusive agriculture value chain and food supply system; and digitisation of agriculture transformation.

On the last day of the event on February 15, the delegates will deliberate on key deliverables of the AWG. It will be a technical session with discussions and participation from all members concerned and international organizations.

Next meetings of G20 AWG are likely to be held in Chandigarh, Varanasi and Hyderabad.

Millets to increase income of small and marginal farmers: Govt

Synopsis

The year 2023 has been declared by the United Nations as the International Year of the Millet, following a proposal by India, which wants to position itself as a global hub for millets. Several initiatives are being undertaken in this regard.

The government on Saturday said popularisation of millets in the country will lead to increase in the income of small and marginal farmers and urged international organisations, academia and hotel industry to revive the forgotten glory of “miracle millets”.

The year 2023 has been declared by the United Nations as the International Year of the Millet, following a proposal by India, which wants to position itself as a global hub for millets. Several initiatives are being undertaken in this regard.

Addressing 9th International Chefs Conference organised by the Indian Federation of Culinary Associations here, Minister of State for Agriculture Kailash Choudhary said millets are considered traditional food for more than half a billion people across Asia and Africa.

In India, millets are primarily a kharif crop, requiring less water and agricultural inputs than other similar staples.

“Millets are important by virtue of its mammoth potential to generate livelihoods, increase farmers’ income and ensure food and nutritional security all over the world,” he said in a statement.

The minister also urged international organizations, academia, hotels, media, Indian diaspora, start-up communities, civil society, and all others in the millets value-chain to come forward and join hands to revive the forgotten glory of ‘Miracle Millets’ through a collaborative approach.

Agriculture Secretary Manoj Ahuja said, “With the popularization of millets in the country, it will lead to an increase in incomes of small and Marginal farmers.”

Taking note of the high agricultural growth over the past few years and its robust contribution in overall GDP, he said the government is ready to take all steps to make the sector the most modern one through adoption of new and emerging technologies.

The government prioritised millets recognizing its enormous potential, which also aligns with several UN Sustainable Development Goals (SDGs).

The global millets market is projected to register a CAGR of 4.5 per cent between 2021-2026 the statement said.

Govt slashes wheat reserve price to reduce flour price

Synopsis

To reduce the price of wheat and atta, the Department of Food & PD, in consultation with Ministry of Finance on Friday decided that the reserve price for sale of wheat under OMSS will be Rs 2350/Qtl (Pan India) for FAQ and Rs. 2300/Qtl (Pan India) for URS wheat of all crops including RMS 2023-24 without adding any transportation cost component.

To reduce the price of wheat and atta, the Department of Food & PD, in consultation with Ministry of Finance on Friday decided that the reserve price for sale of wheat under OMSS will be Rs 2350/Qtl (Pan India) for FAQ and Rs. 2300/Qtl (Pan India) for URS wheat of all crops including RMS 2023-24 without adding any transportation cost component.

The ministry stated that this is to help the supply of wheat to general public in different part of the country at a reasonable price.

“The States may be allowed to purchase wheat from FCI for their own scheme at above reserve prices without participating in e-auction,” the ministry said in its statement.

As per the statement, the rate of wheat has been reduced to Rs. 21.50/Kg for sale to NCCF/NAFED/ Kendriya Bhandar/State Govt. Cooperatives/ Federations etc. as well as community kitchen /charitable/NGO etc engaged in relief operations/ running relief camps for migrant labourers/vulnerable groups.

This concessional rate for NCCF/NAFED/Kendriya Bhandar/state government cooperatives/federations, etc., will be applicable with the stipulation that they will convert wheat to atta and offer it to the public at an MRP not exceeding 27.50 per kg.

This comes after a meeting of Committee of Minister under chairmanship of Home Minister Amit Shah was held on 25th January regarding the prices of essential commodities. Committee hence decided to release 30 LMT wheat from FCI stock through Open Market Sale Scheme (OMSS) as follows:

25 LMT be offered through the e-auction route to traders, flour mills, etc as per the usual process followed by FCI. Bidders can participate in e-auction for a maximum quantity of 3000 MT per region per auction.2 LMT be offered to State Governments for their schemes @10,000 MT/State without e-auction.

2 LMT be offered to State Governments for their schemes @10,000 MT/State without e-auction.3 LMT be offered to Govt PSUs/cooperatives/Federations such as Kendriya Bhandar/NCCF/NAFED etc without e-auction. This will be subject to the stipulation that they convert wheat to atta and offer it to public at an MRP not exceeding Rs 29.50/kg.

Subsequently, this Department made allocation of 3 LMT of wheat to Kendriya Bhandar/ NAFED /NCCF as per their requisitions. Kendriya Bhandar, NAFED and NCCF were allocated 1.32 LMT, 1 LMT and 0.68 LMT respectively.

The ministry added that during the inaugural e-auction, which was held on the 1st and 2nd of February 2023, FCI sold 9.26 LMT of wheat out of 25 LMT to traders, flour mills, and other buyers.

Post announcement of OMSS Policy, the GoI has noted that market prices for wheat are still relatively high. Additionally, it has been noted that states far from Punjab, Haryana, and Madhya Pradesh have extremely high auction rates, particularly in the North-East, Eastern, and Southern regions, as a result of the inclusion of freight charges in base pricing for auction under OMSS.

Introduction to Agri Commodity Trading

Farmers and those working throughout the food supply chain depend heavily on trade for their livelihoods. Additionally, it increases consumer choice and aids in lowering food insecurity all across the world.

Over the past two decades, trade in agro-food items has increased significantly, reaching over 7% in real terms yearly. Agro-food trade is becoming “global,” not merely growing. Global value chains (GVCs), agricultural and food processing value chains stretching over numerous nations that connect the agro-food sectors and other economic sectors from across the world, are where a rising portion of agro-food commerce is taking place.

Trade difficulties brought on by the COVID-19 pandemic occurred all around the world, but the agriculture and food industry proved to be more robust than other areas of the economy. Transparency in market circumstances and legislation helped prevent price increases in staple commodities during the early stages of the epidemic.

Agri commodity market

Approximately 12% of all commodity trading is made up of agro-products. For certain agricultural products, there are no agri commodities markets. There are just six commodity exchanges in India where trade in agricultural goods occurs. Most of these items are cash crops. Spices, grains, legumes, oilseeds, rubber, textiles made of cotton and jute, dried fruits, and other items are some of the goods that are often exchanged.

Understanding agricultural commodity trading:

A futures contract can be used to begin trading in agricultural commodities. Simply put, this is an agreement to buy or sell a specific amount of a certain agricultural product at fixed rates at a later period.
Through Exchange Traded Funds (ETFs) and Exchange Traded Notes, one can also take part in the volatility of agricultural commodities (ETNs).

Benefits of agri commodity trading

By serving as a connection between future and spot prices, commodity trading assists in stabilizing the price of agricultural products. Hedging can reduce the risks brought on by extreme price changes because future and spot prices are directly related. Farmers and other producers gain from stable pricing even as seasonal swings in prices are reduced.

Trading agricultural commodities can assist in determining appropriate, market-based pricing for agricultural goods. This is crucial because, occasionally, the Minimum Support Price (MSP) set by the government and the wholesale prices set by farmers need to line up with the current market trends.

Agricultural commodity trading offers portfolio diversification opportunities to both individual and institutional investors. The trading of commodities is now as simple as the trading of traditional equities and securities. One must fulfill the necessary paperwork, and create a Demat Account, and a Trading Account.

Conclusion

Trading in agricultural commodities has the same level of risk as stock trading. Before making market bets, you should be informed of the hazards. The good news is that much knowledge regarding the agri-commodity sector can be found online. Using stop losses or engaging in options trading are two well-known methods for reducing risk. Additionally, setting up an online commodity trading account, which will provide you with a platform to trade in commodities with simplicity, is pretty simple.

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