A key factor in the financial market of a country is called the commodity market. Base metals, metals, energy, crude oil, coffee, palm oil and tea are traded in this market. It is essential to create an energetic and active market to help investors cover their risk and profit from unequal prices. In India, the agricultural sector grants maximum growth. It can become an important centre for commodity trading.
in 2003, the trading mechanism was established while the commodity market is existing for over 100 years. Although the commodity market has lesser significance than stock markets, it plays an important role in India’s economic development.
For investors on the share market app, Commodity is a good used in commerce which is interchangeable with other goods of the same type. Some commodities on the share market app include grains, beef, gold, natural gas and oil. For investors on the share market app, these commodities can be a way to diversify portfolios beyond other securities.
Significance of Commodity Market in India
Citizens, for living, rely on commodities which makes commodity markets quite significant in India’s economy. The commodity market allows investors to find actual prices of several items which also include agricultural products. They ensure things don’t cause people’s losses. The commodity market has strict requirements which concern commodity quality available for trade. These policies guarantee the good quality of these products benefitting consumers and suppliers.
The role of Commodity market in India plays a pivotal role in the economic growth of the country and the protection of traders/citizens. One sector which needs growth in the commodity market is the agricultural sector because there is no proper structured post-harvest system. This leads to the loss of grains in the transmission, putting farmers at loss. India needs to grow in the commodity market to achieve food security and ensure transparency in aggregation and financing mechanisms.
For the Growth of the Commodity market in India, traders need to consolidate the market and strengthen the regulation. They also need to generate confidence amongst traders and create a market-free manipulation. Increase awareness amongst stakeholders and empower farmers with the right price information.
Conclusion
To start trading in the commodity market, start a Demat Account on the share market app. Investing in commodities is suitable for those who want to transform their portfolios beyond stocks, shares, real estate and bonds.
The Motilal Oswal app, a user-friendly platform offers a Commodity Trading account, which is safe and the best app today. Before making any investment, study the market thoroughly and note which commodity you wish to trade. Start with the cheapest commodity, and earn profit from it when its price increases in future. You should know which commodities to trade in. Motilal Oswal offers trading in Energy, Meat, Agriculture and Metals.
Our commodity market will grow in the upcoming years. Although this market is not popular as compared to other markets, it plays an essential role in influencing prices, affecting the agriculture sector positively and hedging risk.