Price volatility refers to the rapid and significant fluctuations in the price of goods and services. It can impact various sectors, including agriculture and commodities. Such volatility affects consumers and producers alike. In India, it influences inflation rates and economic stability. Understanding price volatility is crucial for policymakers. It helps in formulating effective economic strategies and ensuring market stability.
In 2021, the Government of India suspended futures derivatives trading for several agricultural commodities. This decision aimed to combat rising prices of essential goods like gram, wheat, and...