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India is the second most populous country in the world and is expected to become the world’s most populous country by 2027. With so many people calling the country home, it’s no wonder that the agriculture sector is experiencing high demand. In this blog post, we’ll take a look at the top five highest-demand agri commodities in India and what businesses can do to take advantage of this trend.

Commodities, in essence, are goods or products that we tend to use regularly. For example, when we are talking about agri commodities, the first name that comes to mind is spices. Aside from this, you can consider grain, oil, pulses, and various seeds to be a part of this segment as well.   

But what do we mean when we talk about “commodities with the highest demand?”

The “demand” is usually calculated through –

  • The overall traded volumes of the products 
  • The demand and supply effect 
  • Liquidity of the available options 
  • Price movements available in the community, and 
  • The increase or decrease in agri commodity prices

So, which agricultural commodities are currently in demand in the Indian market? If we are considering the aforesaid factors, then there are three types of agricultural products that come to our mind. Let’s learn more about it. 

1. Sugar 

Since 2016, the Sugar market in India has been witnessing a deficit in production. However, it rose to the throne again in 2020 and the trend’s been continuing in.2021 as well. According to a report, India consumes more than 23 million tonnes of sugar every year. And, the consumption amount increases to around 7-8 million tonnes during the winter season only. Due to this reason, it is considered to be one of the most demanding agri commodities in the country. 

Sugar mostly grows in – 

  • Tamil Nadu
  • Uttar Pradesh 
  • Andhra Pradesh 
  • Bihar 
  • Gujarat
  • Punjab
  • Haryana 
  • Karnataka 

2. Refined Soyabean Oil 

The production of soybean oil has been on the rise from 2015-16 in India. For instance, in the year of 2015, the overall production of soybean was marked at 6.9 million tonnes. However, the same number had increased to almost 9.5 million tonnes in 2016. Aside from the Indian subcontinent, it’s also being transported to other countries like the USA. So, unlike some other agri commodities, it has quite a bit of international demand as well. 

Also Read:- Soybean Price – Demand & Forecast

The major soybean-growing states in India are –

  • Maharashtra 
  • Madhya Pradesh
  • Telangana 
  • Karnataka 

3. Wheat 

Wheat’s been high in demand, especially in Middle-east India, forever. However, this massive demand, alongside the fear of drought and ever-increasing procurement by the Indian government, has boosted this agri commodity prices by a mile. Unlike sugar, wheat-based products stay on-demand throughout the year. According to Emkay Corporate, the overall domestic demand for wheat is around 82-84 million tonnes per year. 

The best wheat-growing states in India are –

  • Uttar Pradesh 
  • Punjab
  • Haryana 
  • Rajasthan 
  • Madhya Pradesh

The list of in-demand agri commodities in India is never-ending, especially due to our overall population. However, the three things we have mentioned here are definitely higher on the list than anything else. And, the way the demand for food, particularly the agricultural ones, is rising, you can expect the prices of these crops and products to increase even more in the upcoming years.

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