PRICE VOLATILITY OF AGRICULTURE COMMODITIES: ISSUES AND CHALLENGES

Agricultural marketing performs an essential position no longer solely in arousing production and utilization, however in expediting the stride of economic progress. Due to the special characteristics of unindustrialized commodities, its marketing is different from other commodities. The particular features of primary segment which are divergent from the manufacturing segment are: destructibility of the product, seasonality of production, large quantity of goods, difference in quality of goods, unusual supply of products, small size of holdings and scattered production, and processing of their products. The significance of agricultural vending has become much evident in the contemporary preceding with the expanded marketable surplus of the production pursuing the high-tech onwardness. However, its dynamic elements are foremost significance in promotion of socio economic development of a nation.
Due to all these special characteristic of the agriculture, agricultural market functions are huge in range varying from post harvesting process, grading distribution, till it reaches final consumer. Some products have to move far places and some locally, some have to be moved quickly (perishables), some slowly. As a result of this the prices, of agricultural commodities are volatile or fluctuating with their own defined cycle. This is an really issue in agriculture market and challenge to the policy makers which need more to be researched so as to see that price volatility may be controlled to get good reward for producers and also to maintain the consumers sovereignty.
With background, in this paper an attempt is made to analyse the trend of price volatility of major agriculture products in India. The main aim of this paper is to analyse the nature and trend of agricultural commodity price in Indian market. The paper is descriptive and analytical in nature. Major findings of the research are that price of agricultural commodities fluctuation shows both larger cycle and small cycle of fluctuation.