InvestorQ : Is it true that the quality of infrastructure is a major issue in India?
ramya Bhaskaran made post

Is it true that the quality of infrastructure is a major issue in India?

Answer
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Anu Biswas answered.
2 years ago


One of the big challenges for Indian agricultural commodity futures has been the quality of infrastructure. Trade and transport infrastructure makes a big difference to the pricing of agri products. In most agri products, the supply tends to be concentrated in a handful of producers. That means the availability of quality transport and trade infrastructure becomes critical to ensure that supply reaches on time and keep price in check.

Warehousing facilities also make a big difference to the prices of agri commodities. Most of the agri commodities are soft commodities as they have a shorter shelf life. This is in contrast to hard commodities like zinc, copper and nickel which have a very long shelf life. The quality of warehousing services becomes extremely critical so that agri commodities can be moved around more seamlessly. Remember, in the post-GST scenario, the movement of goods across India has become a lot simpler. Agri commodity prices are not just determined by the forces of demand and supply but also other unique factors. An understanding of these is critical to trading in agri futures.