The agricultural sector is subject to a number of risks that should not be neglected but, on the contrary, regularly monitored in order to preserve and ensure a certain security with regard to the environment that encompasses it.
Ali Muhammad Lakdawala, procurement in-charge at India’s premier FMCG conglomerate at ITC Ltd compagnie in India tells us about these possible risks.
His knowledge of the Asian market also allows us to better understand the difficulties but also the evolutions we may encounter there.
You follow the agri markets’ trends very closely, but not only. What’s in your opinion the major event influencing prices ?
Weather & Geopolitical will be key drivers for world agri market. Already El Niño has shown the heads up but we need to be watchful on its intensity and impact. In case of Brexit it will change the whole format for agri markets.
During ComRisk last year your talk mainly focused on the trade war between the US and China. How has the situation evolved since last May? How has it impacted the commodities sector ?
"Post presentation last year, the trade tensions has only escalated : markets has gone in "PROBLEM of EXCESS or also can be termed as RESOURCE COURSE" for exporting nations. China will be and always remain a dominant force but we should also not forget that world's largest democracy is the next big thing in the global commodity market."
You’ve been participating to ComRisk since the first edition. You’re based in India, so what makes you come back to this Europe-based gathering every year ?
Firstly it’s an honour to address such a diverse gathering.
Also the format of the conference is unique, wherein under one roof all types of commodities gets covered and it also gives a new perspective to commodity players who trade only in one segment (ie) Agri/Metals/Energy to discuss and apply different strategy or interchange strategy. Also it provides new insight on Commodity Risk Management.
For more lively debate, why not book your place at Comrisk 2019 -- It's free!