BUSINESS

Boom time for commodities in India

By Vipin Mehta
September 24, 2007 13:16 IST

It is not just in the information technology sector alone that India has emerged as a global leader of innovation, entreprenuership and example. India is today the largest producer of a variety of commodities, prompting global analysts to predict that the country's commodity futures market will be ten times bigger than the stock market.

Experts say the presence of varied agro-climatic conditions along with favourable conditions for cultivation has helped India to become the world's largest producer across a range of commodities.

The government has already approved 60 agriculture export zones. In addition, it has identified four zones -- in West Bengal, Assam, Andhra Pradesh and Sikkim -- for which it will provide funds of $12.1 million under a scheme called Assistance to States for Infrastructure Development of Exports.

According to a study by the Ministry of Food Processing, India's exports in agricultural and food products constitute about 1.6 per cent of total global trade. 'Vision 2015', adopted by the Government for the food processing sector, envisages India's potential to achieve 3 per cent share in world trade of agricultural and food products.

Look at some facts on commodities production, consumption and trading in India:

The government plans to build up food grain stocks abroad to bolster food security. The idea is to use the country's bulging foreign exchange reserves to add to the buffer stock of grain currently held within the country.

The ministry of agriculture has initiated a proposal to open up the agriculture sector to foreign direct investment, thereby allowing overseas companies like Pepsi and Cargill to directly undertake and invest in farming.

Vipin Mehta
Source: PTI
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