Introduction

Wondering what a plantation is? An estate in which crops such as coffee, tea, cotton, rubber, coconut, sugarcane, rice, and tobacco etc. are grown is commonly called a plantation. A plantation economy is an agriculture-based economy involving the mass production of plantation commodity crops.

Factors Affecting Production

As per the latest updates, the plantation industry in South Indian is going through challenging times on account of the high cost of production and due to plantation commodities bringing in little or no income. Planters have sought support from the government in order to overcome the challenge of rising prices of commodities such as rice, wheat, and maize.

Price Trends

The price of rice has risen by 4.9 times, wheat 4.8 times, and gram 6.6 times. Prices of pulses such as arhar have risen by 7.1 times, moong 8.8 times, and urad 6.5 times. Tea prices have increased only by 2.5 times, and coffee prices have doubled. The change in prices of these crops affects the plantation prices today.

Conclusion

Purchasing a farm is capital-intensive and not a feasible strategy for most investors. Investors can directly invest in plantation commodities and make the most of the price changes in the marketplace. Investors can pick from a range of investment opportunities in plantation price futures in the farming industry, such as tea, wheat, sugarcane, soybeans, cotton, and coffee futures contracts.