GROUP 11 (Commodity Markets)

Agricultural Marketing

is anything for which there is demand, but which is supplied without qualitative differentiation across a given market.

it refers to any good that possess a physical attribute

Commodity

not a particular place in which things are brought and sold but the whole of a any regions in one another that the prices of the same goods tends to equality, easily and quickly.

Commodity markets “market”

Classification of Markets

based on functioning

based on the stage of marketing

based on scale/volume of business

based on time

based on place

based on products sold

based on competition

these are markets which is done accordance with the rules and regulations framed by the statuary organization.

Regulated Markets

these are the markets in which business is conducted without any set of rules and regulations.

Unregulated Markets

the sale of agricultural produce is undertake either by open auction or by close tender method

methods of sale

it is done by a licensed standard weights and platform scale

weighment of produce

the produce in the regulated markets is expected to be sold only after grading

grading

all the markets functionaries, from the hamals (loaders) to traders working in the regulated markets have to obtain license from market committees.

licensing of market functionaries

they are markets where most of the raw materials that are sold without much possessing.

Primary Markets

these market are mostly far away from the primary centers of production and located at the consumption centers.

Secondary Markets

this are the markets where goods are purchased for final use or consumption

Terminal Markets

it refers to a market where goods are sold in small quantity directly to the consumer

Retail Markets

it is the market where the middlemen buy the goods in bulk from the producers and manufacturers.

wholesale market

this is an auction market in which participants buy and sell commodity/ future contracts for delivery on a specific future dates.

Future Market

is an agreement between two parties to buy or sell an asset a ta future date of a price agreed upon by both

Forward Market

Commodities are physically bought and sold here so these is called physical markets.

Spot Market

these are markets wherein the buyers and sellers do not meet

Also called as virtual market/online market

Electronic Market

a market with commodities such as grain, gold, crude oil that are bought and sold for cash and delivered immediately.

Wholesale Market

this involves the sale of goods between business.

They not aimed directly at the consumer.

Industrial Market

The products and services are bought by individuals for their own or family use.

Consumer Market

High volume, low unit value for examples: foods, beverages, personal care products and pharmaceutical products.

Fast-Moving Consumer Goods (FMCG)

low volume but high unit value

Consumer Durables

products made form textiles or other fabric as opposed to hard goods which are made from materials like metal or woods.

Soft Goods

they are actions or activities that satisfy a need or want

Services

there is a large number of buyers and sellers. All buyers and sellers in the market have perfect knowledge.

Perfect Markets

The market in which the conditions of perfect competition are lacking. It is also deviate from the ideal conditions of perfect competition

Imperfect Markets

a market where there is only one seller, and the firm has complete control over the price and output.

Monopoly

a market where a few large firms dominated the industry

Oligopoly

a market where there are only two sellers

Duopoly

are the individuals, businesses, or institutions that participate in economic markets. They interact with each other to but and sell goods and services.

Market Players and Motives

a person who buy commodities or products

Buyer

A person who has goods to offer for willing buyers to buy

Seller

a trader who buys a goods at lower levels and store it for some time and sells when price improve.

Stockist

who operate between buyers and sellers since they facilitate trade and take some part of the price margin.

Brokers

he/she work in the market by buying goods and selling it at a later period or in a different market and gains from the price difference.

Investment motives

holds and sells commodities in the market to get profit from the fluctuations arises in the market and associated with more or risk factors.

Speculative motive

is a practice of taking advantage of a price differential between two or more market, time period etc.

Arbitrage motive

the concepts used in economics to describe the interconnectedness of industries and businesses within a market.

Forward and Backward Linkages in Market

these refers to the industries or businesses that rely on agricultural products as inputs for their own production. In other words, they are the industries that come after agriculture in the production chain.

Forward linkages

these are refers to the industries or businesses that supply inputs or resources to agricultural producers. In other words, they are the industries that come before agriculture in the production chain.

Backward Linkages

farmers enter into agreement with buyers such as processors, retailers or exporters to produce specific crops or livestock according to predetermined specification.

Contract farming

involves a large-scale agricultural operations owned and managed by corporations.

Corporate Farming

was established in 1964 which deals trade, investment and development issues.

United Nation Conference on Trade and Development (UNCTAD)

international body dealing with the rules of trade between nations

World Trade Organization (WTO)

is a popular chain retail stores in India that specialize in fresh fruits and vegetables. It is known for its commitment to quality and freshness.

Safal market

it is a rural internet kiosk initiative launched by the Indian multinational company ITC limited which aimed to connect rural communities in India to the digital world and provide various services, particularly to the farmers.

E-Choupal

it is a wholesale chain stores that primarily cater to business costumers such as restaurants, hotels and retailers. It offers a wide range of products including food, beverages, household items, and non-food items.

Metro Cash and Carry