Agriculture commodities
Broadly speaking commodities can be divided in two categories: Soft and Hard

Soft commodities are typically grown. Corn, wheat, soybean, Soybean oil, sugar are all examples of "soft" commodities. Many soft commodities are subject to spoilage, which can create huge volatility in the short term. Weather plays a huge role in the softs market, which makes predicting supply especially difficult.

On the other Hard" commodities are typically mined from the ground or taken from other natural resources: gold, oil, aluminum. In many cases, initial products are refined into further commodities, as oil is refined into gasoline. Because "hard" commodities are easier to handle than "softs," and because they are more integrated into the industrial process, most investors focus on these products

Agriculture provides the principal means of livelihood for over 58.4% of India's population. It contributes approximately one-fifth of total gross domestic product (GDP). Agriculture accounts for about 10 per cent of the total export earnings and provides raw material to a large number of industries. Being the third largest land mass in world it is number top producer of many agriculture commodities. And yet Indian agriculture has one of the lowest yields in most commodities, nearly 55.7% of area sown is dependent on rainfall. Clearly while there are challenges there are huge potentials as well.

Edible Oil Complex

Edible oil complex include actively traded commodities like soy beans, refined soy oil, soy meal, Mustard seed and Crude palm oil. These commodities contribute to more than 50% of the exchange volume. Out of the various Agri- commodities traded at the domestic bourses Edible oil complex have global appeal and therefore their prices move in tandem with the international markets. Prices in domestic exchanges enjoy high correlation with their global counterparts. Chicago Board of Trade (CBOT) is considered to be benchmark for Soy complex pricing and Bursa Malaysia Exchange is considered to be benchmark for Crude Palm oil pricing.

Soya Complex   Mustard seed   Crude Palm Oil   Castor Seed   Cottonseed Oil Cake


India is the world's largest producer, consumer of pulses. Chana, Tur, Urad, Moong are some of the major pulses grown in the country. Of the total pulses production in India Chana contributes more than 40%. Chana is also the only commodity traded in the pulses segment and India being the lone platform for the trade globally. The commodity is highly liquid due to its high correlation with the physical market prices. This has attracted large volume of trade in this counter. Also Chana trading has been attracted by large corporates as well as retail traders due to its growing usage in food industry making it very attractive for hedging and arbitrage perspective.



India has moved rapidly from being an importer of food grains to becoming an exporter. Today, it is the second largest rice producer after China, with a share of 20% of world in production, and is ranked tenth amongst the world's wheat growers. Currently India is one of the largest producers of cereals and grains. India produced more than 200 million tonnes of different food grains every year. The country is self-sufficient in grain production. Grain processing is the biggest component in the food sector, sharing over 40% of the total value. Grains can emerge as a major foreign exchange earner for India in the coming years. India's food grains production is now at around 230-240 million tonnes. These include rice, jawar, bajra, maize, wheat, gram and pulses.

Wheat   Corn   Barley   Maze


India is known as the 'The home of spices'. India is the leading producer, consumer and exporter of spices in the world. India contributes about 48% to the world spices demand. At present, India produces around 2.75 million tons of different spices valued at approximately 4.2 billion US $, and holds the premier position in the world spices market. In India, spices are important commercial crops from the point of view of both domestic consumption and export. Spices export from India has registered an all-time high both in terms of quantity and value during 2010-11.

Chilli, Coriander, Jeera, Pepper, Turmeric and cardamom constitute spice complex for derivatives trading in India. The performance of these contracts illustrates the success of efficient price discovery in the Indian domestic market through derivatives trading. Albeit the fact is that no other futures contracts of spices are actively traded on any of leading international exchanges.

Jeera   Pepper   Turmeric   Dhanya   Chilli   Cardamom


India plays a crucial role in both the commodities Cotton and Sugar. India is the second largest producer consumer and exporter of Cotton. While production and global trade of sugar is very volatile because India is the largest consumer of sugar in the world, surplus or deficit in India tilts the global prices in the one or the other direction. Effectively both these commodities are very broad commodities has large economies of their own in India are an important price influencing factor in world. Within India both the commodities provide very important source of income to millions of farmers, traders and exporters, and because of its importance are highly politically sensitive commodities. Derivative segment for both the commodities is in nascent stage and does not justify the wide economic base it has in the country.

Cotton   Sugar   Mentha Oil   Potato

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