International Journal of Commerce and Management Research

Authors
A Madhavi, GV Chalam

Abstract
Commodity prices are generally low during season due to market arrivals, sometimes, resulting in distress sale by farmers. The differences in season and off season prices provide information on the extent one can take contracts in derivative trading. A study of seasonality is likely to provide the basis for growers and traders the information on the price fluctuations during season and off season. The Indian commodities market has attracted the policy makers, researcher and academicians to analyze different issue relating to the functioning of commodity markets. An attempt is made in this paper to examine the existence of seasonality in select agri-commodities. More specifically, the present study is intended to address and to explore the existence of seasonality in select agri-commodities contributing to price risk to producers and traders. It is observed from the analysis that the prices of select commodities indicate that commodity average prices per quintal is gradually increasing over the period of study for all the commodities. The increase in prices are substantial in case of Guar Seeds, Channa, Turmeric and Barley. The existence of seasonality or other-wise is analysed with the help of market arrivals and prices data on month to month basis during the period of study. This analysis is expected to provide information for developing strategic in derivatives market.