Agricultural Product Derivatives - India

India

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$13.86bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -0.09% resulting in a projected total amount of US$13.80bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 1.76m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in India is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Customers in India are increasingly looking at Agricultural Product Derivatives as a valuable investment opportunity due to the potential for high returns and portfolio diversification that these financial instruments offer. With a growing awareness about financial markets and a desire to hedge against agricultural commodity price volatility, investors are showing a keen interest in derivatives linked to agricultural products.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in India is the increasing participation of institutional investors, including hedge funds and pension funds. This trend is contributing to higher trading volumes and liquidity in the market, making it more attractive for retail investors as well. Additionally, the introduction of new derivative products and trading strategies tailored to the Indian market is further fueling the growth of this sector.

Local special circumstances: India's agricultural sector plays a crucial role in the country's economy, employing a significant portion of the population and contributing substantially to the GDP. As a result, any developments or policy changes in the agricultural sector have a direct impact on the Agricultural Product Derivatives market. Government initiatives to support farmers, changes in crop production, and weather patterns all influence the demand and supply dynamics of agricultural derivatives in India.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the Agricultural Product Derivatives market in India. The country's overall economic growth, inflation rates, exchange rates, and interest rates all play a role in shaping investor sentiment and market performance. Additionally, global factors such as international trade agreements, geopolitical events, and commodity prices have a ripple effect on the Indian agricultural derivatives market, making it a dynamic and interconnected ecosystem.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.