Indian Agri Commodity Market, Risk Management and its Sustainable Growth : An Integrated Framework

Any country's Agri-food chains consist of complex network of inputs and outputs providing linkages between farm producers and end consumers. Agri chain involves a big list with varying interests, of stakeholders. On the macro level, it is very difficult to analyze agri food sector in totality due to its direct and indirect linkages with other sectors like industries which agricultural inputs, agri processors farm produce into a variety of food main products, by products, joint products and distributors to consumers. In Indian context, Agriculture plays major role in contribution to national gross domestic product, international trade (export/import) and national food security, so it great political and economic importance. Hence it is very much of interest here to study sustainability aspect of Indian Agricultural Commodity Market in new economic regime of the LPG (Liberalization, Privatization and Globalization). This paper tries to outline the various risk management practices and tools available in India for agriculture for sustainable growth. Role of banks and FIs (Financial Institutions) has been outlined here for providing innovative services for price risk management by different members of value chain