Breaking Myths: Why Online Agro Commodity Trading Is Safer Than You Think

 Online commodity trading is a process through which buyers and sellers trade agricultural products on digital marketplaces. These are generally commodity exchanges or brokerage websites where agro commodity trading takes place.

These online platforms offer transparent processing, verified buyers and sellers, and access to real-time market data. They also provide futures contracts or spot trading options, enabling traders to excel in their business endeavors.

Online agro trading eliminates the need for traditional offline marketplaces, offering a more reliable, transparent, and far-reaching ecosystem.

Let’s have a look at the features of online agro commodity trading, providing new-age technological advantages to agricultural-related platforms. 

SEBI Oversight

Traders would prefer an environment where they can conduct business deals under the oversight of a regulatory authority such as the Securities and Exchange Board of India. This commodity market regulatory body must offer traders a secure and transparent trading system, preventing any chances of fraud and misconduct.


  • SEBI recently introduced a new set of rules to ensure transparency and the safety of traders. This new rule requires commodity exchanges and their clearing corporations to maintain 2x peak IT capacity.

Transparent Processing 

From providing traders with information about their potential clients to processing the transactions, the complete activity happens online on a digital platform. This makes the process transparent, leaving no room for anomalies and mistrust between the buyer and the seller of the agro commodity.


  • Multiple reports suggest an increase of enormous scale over the past two decades, from Rs 2,000 crore average daily trade in 2004-05 to Rs 24,000 crores in 2022-23, processed via electronic trading platforms.

Verified Buyers and Sellers

Digital platforms for agro traders provide users with a verified list of buyers and sellers. Suppose a buyer takes the initiative to import an agricultural product in bulk. Digital agro trade platforms offer them a list of verified agro exporters, establishing a trust factor for a buyer.


Online Negotiation

Between a buyer and a seller, negotiation is key to finding a common ground to move towards a deal that serves the best interest of both traders. Such a digital agro platform provides an online negotiation tool for the sake of the best possible deal.


  • Due to Online Negotiation, traders have witnessed, as per a survey, almost 40% efficiency in transaction time when compared to the earlier traditional mode. Also, the analysis reported an 80% decline in recording errors when compared to the old traditional manual methods.

Digital Verification

What agro traders would want most while they are in the process of making a deal is to have a system to verify the necessary steps. Digital verification enables a seamless experience for the agro traders, or the matter of fact, any sector’s trader.


Escrow Payment

Escrow payment method ensures the buyer’s interest, so that the product quality and quantity are as expected. Third-party digital platforms hold a buyer’s money in an Escrow account until they approve the product.


  • As per the report, ESCROW services are expected to reach past 360 billion USD in 2030, at an impressive 13% CAGR. This highlights the ESCROW mechanism widespread amongst agro commodity buyers and sellers. 

Logistics Tracking

Logistics tracking makes agro trading platforms more trustworthy amongst dealers. The fact that both parties, the seller and the buyer, can track their goods end-to-end makes it even more trustworthy.


  • Apart from the end-to-end visibility feature convincing 70% logistics professionals, the use of AI+IoT in logistics resulted in a 40% drop in lost/delayed shipments, along with a 20-30% gain in operational efficiency for the company, against the outdated traditional methods. 

Data Driven Decisions

A digital platform concept is to process data, which includes every small detail that matters for the platform to deliver personalized services and recommendations, for both the agro commodity importer and the exporter..


  • Implementation of data analytics into agribusinesses could lead to an improvement in productivity and will facilitate informed decision-making across the agricultural supply chain.

Conclusion

Overall, myths around online agro commodity trading are no longer relevant, as digital advancements have enabled platforms to streamline their processes, making their life easier. Overall, online agro trading platforms have affected millions across the globe.


Agro-Trade digital platforms, such as Tradologies, are transforming the agricultural trade in India and across the globe for buyers and sellers. Visit Tradoligie.com to learn more about its unique propositions in the market. 





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