In 2079, many challenges will arise in the commodity sector

- Commodity Current : Jayavadan Gandhi

The new year of Vikram Samvat 2079 is full of many challenges for the commodity sector. There has been a significant increase in business after coming out of Corona in the last year, but after the Russia-Ukraine war, there was a boom in the supply of grains, edible oils and metals. Is going. While China is mostly engulfed in the corona epidemic, the import-export has also been affected. The increase in interest rates in America and European countries last year has also affected the global business of gold and silver as the rise in inflation and dollar strength. Globally, gold and silver have become cheaper on average, but as the rupee has depreciated in India, the volume of smuggling has increased as gold and silver become more expensive locally.

At the time of Diwali, gold was around fifty thousand and silver was in the range of 56 to 57 thousand in the last few days. However, this time the jewelers business is in a long-term condition. Business is expected to increase by 20% on Diwali compared to last year. After Diwali in the new year, as the wedding season is also in full bloom, there is a demand in the jewelery business.

Meanwhile, prices of agri commodities such as food grains, edible oils and spices increased by an average of one-half to two-fold due to shortage of supply last year, with the effect of which there is a significant increase in agricultural production in the Kharif and next Rabi seasons. After Diwali, crops like cumin, rayado, wheat are expected to be planted in large quantities. After the Russia-Ukraine war, India has been hit in the global business of wheat. India has exported more than 45 lakh tonnes with an increase of 117% from last April to August. An export ban had to be imposed to control the surge in exports. In order to achieve self-sufficiency in agricultural production in the country in the next rabi season, the support price of mustard has been increased by 400 rupees to 5450 rupees. With an increase of 500 rupees in masur and 6000 rupees and an increase of 100 rupees in wheat, gram and barley have been increased by 2125, 5335 and 1735 rupees respectively.

In the new year of Samvat 2079, if closed futures of Agri Commodities are started, liquidity in the business can also increase. Blaming futures for the rise in inflation, the government has stopped the futures of pulses and most of the edible oil commodities. Despite the passage of a long period of 18 to 20 years since the beginning of futures exchanges of agricultural commodities, the commodity exchanges are currently seeing a situation as if they are on oxygen. About which the current business of futures is going on in more than half a dozen items. The strict policy of the exchanges has also been behind the collapse of liquidity in the commodity exchanges. At present, 15 to 20 percent advance margin is considered by the businessmen to be the reason for keeping a big gap between the two prices of spot and futures. Due to which there is no significant volume in the futures of items like coriander, turmeric, guar, castor other than cumin. Coffee futures, which started a month ago, have also not had a significant breath. In the new year, the review of starting an easy going business by creating a platform combining commodity exchanges with equity exchanges has also become a discussion among the business class.

Markets for grains, spices, telebia etc. in the Ravi season which started after Diwali are currently based on Ravi planting. In Telibiya, Raida planting continues to be high in the new year. Farmers' expectations on the soybean crop have not been met satisfactorily. The highest prices in spices have been seen last year.