Agriculture is the primary occupation of the nation of India. It is a huge sector of the Indian economy and also its contribution to the GDP is a great share. However, the ups and downs in the commodities markets have led to drops in agro-based commodities.
India is a huge exporter of agricultural commodities given its huge agriculture sector that we all are aware of. The changes in the commodities market affect the overall import and export characteristics of a nation. The export of agricultural commodities from India is affected by the dipping prices of the related commodities and also the recent floods in the states of Maharashtra and Bihar have only added to worsen the situation. The prices of these commodities are also rising in the local markets due to the shortage and immense demand within the country and now this is catching up with the exports from the nation. Refined soya oil prices dipped 0.07 percent to Rs 765 per 10 kg in futures trade on Monday as speculators trimmed their bets amid adequate supply in the spot market. Market analysts said cutting down of positions by participants against ample stocks mainly influenced refined soya oil prices.
Soybean is not the only commodity to be affected others in the list are guar gum, Coriander and guar seed. This drop in the price will soon start to show its effect on the market and eventually reflect in the GDP of the nation. As the Indian economy is already on shaky grounds this might add to the troubles and maybe even push the nation to its recession phase.