Demonetisation Of Rupees: It’s Impact Over Mcx Specific Sector (With Reference To Agricultural Commodity Market)

Abstract

Indian economy mainly depends on agriculture sector, around 70% population of the country survive through agriculture. This paper is based on how Demonetisation, an economic event occurs and effects on the agricultural commodity market. To show this effect this paper is based on to analyse the pre and post demonetisation of rupees scenario on the agricultural commodity market, for this purpose some agricultural commodities have been taken. These commodities are – Cotton, Cardamom, Crude palm oil and Mentha oil from MCX. Duration of the study has been taken from January 2016 to October 2016 for the Pre scenario of the demonetisation and November 2016 to August 2017 has been taken as post scenario of the demonetisation situation. For this purpose secondary data has been taken on monthly basis. In this study Paired sample T test as a statistical test has been used to analyse the data. The result being observed that the demonetisation event has significant impact over the commodity cardamom and crude palm oil whereas demonetisation event does not have any significant impact over the commodity cotton and mentha oil. Lastly researcher finds out that on some agricultural commodities are affect by the demonetisation while others are not. 

Keywords- Demonetisation, Mentha oil, Cardamom, Multi-commodity Exchange, Crude palm oil, Remonetisation.