Effect of Climate Change on Prices of Agricultural Commodities

The study finds out the effect of climate change on prices of agricultural commodities. If natural disasters are result of climate change then it has an immediate effect of prices of agricultural commodities. The effect of such change in price is seen mainly on seasonal vegetables. Primarily, the crop production fails due to heavy rain prolonged heat wave resulting to drought. Thus it affects supply of commodities to the markets. Taking advantage of the situation, the middlemen takes advantage. The farmers are further pushed to a miserable situation on two aspects, one due to loss of production due to natural disaster and secondly by the middlemen in the value chain offering no better price than normal situation. If the vegetable is perishable to a lesser extent then the middlemen’s margin may be less. Here the state government has little role in controlling the price of vegetable apart from enforcing lower amount of commodities stored by retailers and wholesalers. Even trying to enforce stringent measures by the state governments have seldom provided relief to consumers. In this light, the study intends to study the effect of climate change on agricultural commodities.