To Check If There Is Feasibility of Arbitrage Advantages for Wheat in Khanna and Tarapur Market

Published: 2021-06-29 07:10:59
essay essay

Category: Social Issues

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
AGRIBUSINESS ASSIGNMENTBy: Gaurav Jaiswal (P36029)To check if there is feasibility of Arbitrage Advantages for wheat in Khanna and Tarapur market  Market PlacePrice of Wheat per QuintalKhanna Mandi (Ludhiana)1525 Rs. (Constant )Tarapur Mandi (Gujarat)1660 – 1730 Rs. (Fluctuating)         As we can see from the above table, In the month of April 2016, price of wheat in the Khanna Mandi, which is in the Ludhiana-Panjab is remain constant around 1525 Rs./quintal. While in the Tarapur Mandi of Gujarat the average price is fluctuating from 1660 to 1730 during the month of April. So the rate of the wheat is depends on the day on which we purchased the wheat from the Tarapur Mandi. If we calculate the average rate during the month it comes out to be 1688 Rs. /quintal that is 163 Rs./quintal higher than the Khanna Mandi.          If we transport wheat from Panjab to Gujarat then truck freight is around 364 Rs./ quintal (V.R.L. Transport, Globe cargo Transport) and via train it is 173 Rs./Quintal this rate will raise further with calculation of  labor cost for loading and unloading. Since the rate of transportation is higher than the average of arbitrage available we don’t get any advantage by buying from the Khanna Mandi and sell it to Tarapur Mandi.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read