Along with various essential metals like silver and gold, various commodities are also traded on exchange. Some of them are Jeera, Chilli, Tur, Urad, Pepper, Wheat, Turmeric, Guargum, Rice, Channa, Cumin Seeds etc. The basic idea behind introducing market for commodities was to protect farmers from exploitation and to regulate the rising prices. As prices for spot and future are determined by the traders themselves it safeguards the interest of consumers without any regulation of government.

 Along with this using various strategies on cash and future one can easily make money on it. The basic advantage of trading on it is: the quality and delivery stations are predetermined which help the wholesalers and manufacturer to purchase from exchange at fixed prices and then sell it to their customers.

 Some Facts:

• India is the world's largest producer and consumer of cumin seed India's annual production of cumin seed ranges between 75,000 tons to 1,65,000 tons.
• Kerala is considered to be the premium grade of pepper and rules above the international grades.
• India is the largest consumer of chilli in the world. Around 90% of India's production, is consumed within the country.
• Indian chili is mainly exported to USA, Sri Lanka, Bangladesh, the Middle East and the Far East.

• India annually produces around 1.3-1.5 million tons of urad, which is normally 10% of India's total pulse production of 12-15 million tons
• The major producing states are Andhra Pradesh, Maharashtra, Orissa, Madhya Pradesh, Tamil Nadu and Uttar Pradesh.
• Urad is mainly grown as a secondary mixed crop along with cotton, maize, jowar and other coarse cereals.
• India has the largest area in the world under wheat. However, in terms of production, we are only the third largest behind EU-25 and China.

Learn More

Agro Commodities @ MCX
Agro Commodities @ NCDEX