Agriculture Commodity Crises: An International Evidence for 2007-2008

Abstract

Crises, the term is more furious than other. The consumption of human being is purely based on agriculture. The scenario of 2007-08 was most terrific than ever. The financial crises had changed the shape of international monetary system. The storm was ruined the livings of many investors, at the same time it had changed the look of agriculture commodities also. The nature of crises was not that much of financial crises but the frequency was more volatile ever.

When India is concerned, the crises had made a serious downfall of agro commodity segment. This year had experienced lots of changes of price moments in the international scenario along with national effects. The GDP of India has shown a drastic fluctuation, though the fluctuation was minor, but we can’t ignore the consequences of crises. If we look after the average fluctuation, we can understand the agro commodity has a stronger fluctuation than other indices.

Many investors were switched over to energy segment at the time of agro commodities crises. This inverse relationship shows a wider investor behavior in energy segment, which may cause due to rise of oil price.