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Read Our Latest Post:"Mitigating Risks in Agricultural Product Sourcing from India: Strategies for Importers" ! 🌟 Dive into our newest blog post, tailored for import-export professionals seeking valuable insights and resources. Explore a wealth of information designed to enhance your industry knowledge and global trade expertise. Click the link below to discover more and share your thoughts in the comments! #NewBlog #GlobalTrade #EUTrade #MiddleEastTrade #TheIndianExportCompany

Read Our Latest Post:"Harnessing Technology to Revolutionize Agricultural Sourcing from India" ! 🌟 Dive into our newest blog post, tailored for import-export professionals seeking valuable insights and resources. Explore a wealth of information designed to enhance your industry knowledge and global trade expertise. Click the link below to discover more and share your thoughts in the comments! #NewBlog #GlobalTrade #EUTrade #MiddleEastTrade #TheIndianExportCompany

UNDERSTANDING THE DIFFERENT TYPES OF PRICES IN AGRO COMMODITY TRADE The other day, I was interacting with a buyer who was interested in purchasing cassava chips. During the conversation, he asked, “What's the FarmGate Price?” I paused for a moment, thinking to myself, FarmGate Price? The commodity isn't coming directly from the farm, it's from the warehouse! Though I understood what he was asking, it sparked a deeper curiosity in me. His question led me to research the different types of prices that are commonly used in the agro-commodity trade, and how they affect both buyers and sellers. What is FarmGate Price? The FarmGate Price refers to the price of agricultural products as they leave the farm, without any additional costs for transport, packaging, or storage. It is the price that farmers receive directly, before the product is processed or sold in the market. This price is often lower than the market or retail price because it does not account for these added costs. However, in this case, my cassava chips were no longer at the farm. They had been transported to a warehouse, so the FarmGate Price wasn’t exactly relevant. This distinction in price types highlights the complexity in agricultural trade. Common Types of Prices in Agricultural Trade As I dug deeper into the topic, I came across a variety of price types that are important in trading commodities. These include: ➡️ Market Price ➡️ Spot Price ➡️ Forward Price ➡️ Bid Price ➡️ Ask Price (Offer Price) ➡️ Wholesale Price ➡️ CIF Price (Cost, Insurance, and Freight) ➡️ FOB Price (Free on Board) ➡️ List Price ➡️ Fair Value ➡️ Nominal Price ➡️ Auction Price Curiosity about the Floor Price My research didn’t stop there. Out of curiosity, I also stumbled upon the Floor Price. This is essentially the minimum price a seller is willing to accept for a commodity. In some cases, especially for regulated goods or within certain trading environments, a floor price is set to ensure that prices do not drop below a level that would harm producers. In agricultural trade, the floor price helps protect farmers from selling their products at prices too low to cover their production costs. It's particularly common in government-regulated markets or where cooperatives set prices to ensure fairness and sustainability. Conclusion Understanding the different types of prices in agricultural trade can give both buyers and sellers an edge in negotiations and decision-making. Whether you’re discussing FarmGate Price, Floor Price, or Market Price, each has its unique role in defining the value of a commodity. For me, that simple question about cassava chips opened a new world of insights into how prices are structured and how crucial it is to understand these terms in order to trade effectively in the agro-commodity market. #Agro #Price #MarketPrice #SpotPrice #ForwardPrice #BidPrice #AskPrice #WholeSalePrice #CIFPrice #FOBPrice #ListPrice #FairValuePrice #NominalPrice #AuctionPrice #Edge #Negotiation

The composition and destination of agricultural exports have changed The composition and destinations of US agricultural exports have changed With U.S. agricultural production growing faster than domestic demand for many products, U.S. farmers and agricultural businesses have depended on export markets to support prices and revenues. As a result, US agricultural exports have grown steadily over the past 25 years – reaching $174 billion in 2023, up from $57.3 billion in 1998. The product composition of agricultural exports has changed over this 25-year period, reflecting changes in global supply and demand. Most notably, exports of consumer-oriented products – including high-value products (HVP) such as dairy products, meats, fruits and vegetables – have shown strong growth driven by rising populations and incomes around the world, as well as as well as an increasing diversification of diets. Source: USDAERS --- More information: https://lnkd.in/esxJyqXd

The Booming Global Pulses Trade in 2024: Opportunities and Growth!! The global pulses trade is on a remarkable growth trajectory, reflecting its increasing importance in the agricultural sector. In 2023, we witnessed an 8% year-on-year increase in the global trade of pulses, reaching approximately 19.7 million metric tons (MMT). This upward trend is set to continue, with projections indicating that in 2024, the global trade volume will rise by 10%, reaching 21.7 MMT. Alongside this volume growth, the market value is expected to surge to $13-15 billion, highlighting the robust demand and economic significance of pulses. Driving Factors Behind the Growth Several factors contribute to this impressive growth. Key among them is the substantial demand from Asia, particularly India and China. These two countries alone are expected to import around 8 MMT of pulses in 2024, driven by their large populations and increasing dietary shifts towards more plant-based proteins. Pulses, including dry peas, lentils, chickpeas, pigeon peas, and mung beans, are highly valued for their nutritional benefits, affordability, and versatility in various culinary applications. Major Beneficiaries in the Global Market On the supply side, Canada, Russia, and Australia stand out as the biggest beneficiaries of the growing global pulses trade. Canada, in particular, remains a dominant player, thanks to its large exportable surplus and favorable crop yields. Russia has also increased its exports significantly, especially to China, following agreements on phyto-sanitary requirements that have facilitated smoother trade flows. Australia continues to be a key supplier, leveraging its strong agricultural sector and export capabilities. Emerging Exporters and Growing Import Markets In addition to these traditional powerhouses, we are seeing rising exports from East Africa and South Asia. Countries like Ethiopia, Tanzania, and Myanmar are increasingly contributing to the global supply, supported by their favorable growing conditions and strategic investments in agricultural infrastructure. On the import side, besides the dominant markets of India and China, there is a notable increase in pulse imports in countries such as Turkey, Bangladesh, and Pakistan. These nations are ramping up their pulse imports to meet the rising domestic demand fueled by both population growth and changing dietary preferences. The global trade of pulses is a vibrant and dynamic sector, with significant growth in both volume and value. The expected 21.7 million metric tons in trade volume and $15 billion market value in 2024 underscore the increasing global reliance on pulses as a key component of food security and sustainable agriculture.

Agricultural Exports Generate Staggering $412B Economic Output According to the latest USDA report, the value of U.S. agricultural exports in 2022 reached an impressive $197.4 billion, generating an additional $214.6 billion in economic activity. This brings the total economic output to a staggering $412 billion! For every $1 of U.S. agricultural product exported generated $2.09 of domestic economic activity on average, a high positive economic Impact. Key Highlights: - Commodities & Food Products: These exports included a diverse range of commodities and food products. - Sector Contributions:   - Services, trade, and transportation: $73.6 billion  - Business activities supported by ag exports: $70.4 billion  - Other manufacturing: $52.5 billion  - Food processing: $18.1 billion The USDA’s Economic Research Service uses an agricultural trade multiplier model to estimate the annual value of economic activity generated by agricultural exports. This model measures the employment and output effects of trade in farm and food products on the U.S. economy. To dive deeper into the details, read the full report here: https://lnkd.in/g_ZVDbSd #Trade #USDA #Agriculture #EconomicImpact #AgExports

Promoting Agricultural Exports for Pakistan: A Path to Economic Prosperity Agriculture forms the backbone of Pakistan's economy, employing a significant portion of the population and contributing immensely to GDP. As the world becomes increasingly interconnected, Pakistan's agricultural sector has a golden opportunity to boost its economic standing by expanding exports. Enhancing agricultural exports can not only diversify the economy but also ensure sustainable growth and improved living standards. Pakistan boasts a rich variety of agricultural products including mangoes, rice, citrus fruits, and textiles derived from cotton, all of which hold substantial potential for international markets. By focusing on quality improvements and adhering to international standards, Pakistani farmers and exporters can make their products more competitive globally. Incorporating modern agricultural practices, advanced technology, and effective supply chain management are crucial steps towards meeting these standards. Expanding export markets also requires robust trade policies and active participation in international trade forums. Bilateral and multilateral trade agreements can open new avenues for market access, while trade fairs and promotional campaigns can spotlight Pakistan's agricultural prowess. Government support through loans, establishment of specialised agriculture related Banks/DFIs, tailored made financial products, elimination of middle man culture in agriculture sector, agriculture expo centres, training programs, and infrastructure development can empower farmers to scale up production and quality. By collectively focusing on these areas, Pakistan can boost its agricultural exports, leading to increased foreign exchange revenues, job creation, and a more resilient economy, ultimately contributing to the nation's economic prosperity.

Last year, the value of agricultural exports reached EUR 13.4B, indicating that Hungary sold EUR 3.5B more on foreign markets than it imported. Agriculture accounted for 38 percent of the total external trade surplus of the national economy. The country’s agricultural sector extends beyond the production of raw materials, with processed products comprising 74 percent […] The post Agricultural Exports Reached Record Growth in 2023 appeared first on Hungary Today.

🌱📈 𝐔𝐫𝐠𝐞𝐧𝐭 𝐂𝐚𝐥𝐥 𝐭𝐨 𝐀𝐜𝐭𝐢𝐨𝐧: 𝐀𝐠𝐫𝐨𝐜𝐡𝐞𝐦𝐢𝐜𝐚𝐥𝐬 𝐍𝐞𝐞𝐝 𝐈𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞 𝐈𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧 𝐢𝐧 𝐏𝐋𝐈 𝐒𝐜𝐡𝐞𝐦𝐞! 📢 𝘛𝘩𝘦 𝘊𝘳𝘰𝘱 𝘊𝘢𝘳𝘦 𝘍𝘦𝘥𝘦𝘳𝘢𝘵𝘪𝘰𝘯 𝘰𝘧 𝘐𝘯𝘥𝘪𝘢 (𝘊𝘊𝘍𝘐) 𝘦𝘮𝘱𝘩𝘢𝘴𝘪𝘻𝘦𝘴 𝘵𝘩𝘦 𝘤𝘳𝘪𝘵𝘪𝘤𝘢𝘭 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘣𝘳𝘪𝘯𝘨 𝘢𝘨𝘳𝘰𝘤𝘩𝘦𝘮𝘪𝘤𝘢𝘭𝘴 𝘶𝘯𝘥𝘦𝘳 𝘵𝘩𝘦 𝘗𝘳𝘰𝘥𝘶𝘤𝘵𝘪𝘰𝘯 𝘓𝘪𝘯𝘬𝘦𝘥 𝘐𝘯𝘤𝘦𝘯𝘵𝘪𝘷𝘦 (𝘗𝘓𝘐) 𝘴𝘤𝘩𝘦𝘮𝘦 𝘵𝘰 𝘥𝘳𝘪𝘷𝘦 𝘧𝘳𝘦𝘴𝘩 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘢𝘯𝘥 𝘱𝘳𝘰𝘱𝘦𝘭 𝘨𝘳𝘰𝘸𝘵𝘩 𝘪𝘯 𝘵𝘩𝘦 𝘴𝘦𝘤𝘵𝘰𝘳. 💰 **𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭:** Indian companies anticipate investing Rs. 12,000 crore in the next 3-5 years if the PLI scheme is promptly approved. 🌐 **𝐆𝐥𝐨𝐛𝐚𝐥 𝐋𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩:** Despite being the second-largest agricultural producer globally, India ranks fourth in agrochemical manufacturing. However, with exports exceeding domestic consumption, India stands as the highest exporter of agrochemicals. 👩🌾 **𝐁𝐨𝐨𝐬𝐭𝐢𝐧𝐠 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲:** Agrochemicals play a pivotal role in increasing crop productivity and mitigating losses due to pests and diseases. With India's per capita pesticide consumption at a low of 380g/ Ha, there's immense potential for growth. 📝 **𝐏𝐨𝐥𝐢𝐜𝐲 𝐑𝐞𝐜𝐨𝐦𝐦𝐞𝐧𝐝𝐚𝐭𝐢𝐨𝐧𝐬:** CCFI suggests imposing minimum 30% customs duty on imported formulations and technical-grade products to incentivize domestic production and innovation. Additionally, they advocate for investment incentives and support for companies investing over Rs. 25 crore in the sector. 👨🏭 **𝐄𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭 𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐨𝐧:** Inclusion in the PLI scheme not only drives investments but also generates employment opportunities directly in factories and in field operations, benefiting farmers and the economy alike. 🌾 **𝐄𝐧𝐬𝐮𝐫𝐢𝐧𝐠 𝐅𝐨𝐨𝐝 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲:** Agrochemicals are vital for food security and doubling farmers' income, making their inclusion under the PLI scheme imperative. Let's rally together to support the inclusion of agrochemicals in the PLI scheme, paving the way for India to emerge as a global leader in agricultural innovation and sustainability! 🌱💼 #Agrochemicals #PLIScheme #InvestInAgriTech https://lnkd.in/gbWSJeiB

Read Our Latest Post:"Maximizing Sustainability in Agricultural Product Sourcing from India" ! 🌟 Dive into our newest blog post, tailored for import-export professionals seeking valuable insights and resources. Explore a wealth of information designed to enhance your industry knowledge and global trade expertise. Click the link below to discover more and share your thoughts in the comments! #NewBlog #GlobalTrade #EUTrade #MiddleEastTrade #TheIndianExportCompany