ABSTRACT
Sustainability conditions have become more relevant than ever before in defining the progress of agricultural commodity markets and their resilience. This paper evaluates the efficiency of agricultural commodity derivatives in India concerning sustainability-based policies, especially the National Mission on Natural Farming (NMNF). The research is based on secondary data on key agricultural commodities listed in MCX, over a considerable time range, in order to identify sustainability policy effects and market dynamics. Econometric methods are used, including the Unit Root Test stationarity test, Ordinary Least Squares regression, the ARCH-LM, and GARCH volatility processes, and the Granger Causality test. These techniques can be used to conduct an intensive analysis of the market efficiency, volatility clustering, and price behavior of agricultural commodity derivatives within the leverage of sustainability initiatives. This study brings new evidence on how sustainable trading regimes can enhance market efficiency and build long-term stability and enhanced market involvement in agricultural commodity markets, producing benefits on both sides. Besides providing strategic advice to market participants and regulators, this study intends to establish an effective and sustainable agricultural derivatives market structure in India.
