Agricultural Arbitrage Advisor: A Data-Driven Tool for Identifying Inter-State Agricultural Price Arbitrage Opportunities in India

India ranks among the largest producers of agricultural commodities in the world, yet its agricultural markets remain fragmented across state boundaries. The Agricultural Produce Market Committee (APMC) system has contributed to considerable price variation for identical commodities across states. For traders and farmer-producer organizations capable of moving produce between states, these gaps represent genuine commercial opportunities. However, identifying them currently requires manual processing of raw government data, which is slow and error-prone. This study builds a data pipeline and a decision-support tool called the Agricultural Arbitrage Advisor. Historical daily price and arrival-quantity data were extracted from the AGMARKNET portal across all fifteen commodity groups. The data was cleaned, standardised, and loaded into a MySQL database using Python. A volume-weighted average price was computed for each commodity, state, and date, using arrival quantity as the weighting variable. These weighted prices were compared across states on a shared reference date to identify the cheapest and most expensive states. A minimum arrival quantity filter of 10 units was applied to exclude thin markets. The logic was exposed through an interactive Streamlit web application. As of 19 September 2026, the database contained 1,551,269 records across 32 states, 15 commodity groups, and 416 commodities. Of these, 346 produced valid recommendations. The largest spreads appeared in high-value commodities such as Chili Red, Arecanut, and Ginger. Maharashtra, Uttar Pradesh, Karnataka, and Madhya Pradesh appeared most often as the cheapest sources, while Keralam, Tamil Nadu, and Gujarat appeared most often as the most expensive destinations. The Chili Red spread between Uttar Pradesh and Maharashtra remained positive on all 64 days over a 90-day window. The study contributes a repeatable methodology for identifying spatial arbitrage opportunities in India's agricultural spot markets. It has practical value for traders, aggregators, farmer-producer organizations, and policy researchers.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-10-18
DOI
https://doi.org/10.5281/zenodo.23450514
Primary Topic
Economics of Agriculture and Food Markets
Type
preprint
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preprint

Agricultural Arbitrage Advisor: A Data-Driven Tool for Identifying Inter-State Agricultural Price Arbitrage Opportunities in India

Adityavardhan J P
Zenodo (CERN European Organization for Nuclear Research)
Economics of Agriculture and Food Markets
preprint

Agricultural Arbitrage Advisor: A Data-Driven Tool for Identifying Inter-State Agricultural Price Arbitrage Opportunities in India

Adityavardhan J P
preprint en

Abstract

India ranks among the largest producers of agricultural commodities in the world, yet its agricultural markets remain fragmented across state boundaries. The Agricultural Produce Market Committee (APMC) system has contributed to considerable price variation for identical commodities across states. For traders and farmer-producer organizations capable of moving produce between states, these gaps represent genuine commercial opportunities. However, identifying them currently requires manual processing of raw government data, which is slow and error-prone. This study builds a data pipeline and a decision-support tool called the Agricultural Arbitrage Advisor. Historical daily price and arrival-quantity data were extracted from the AGMARKNET portal across all fifteen commodity groups. The data was cleaned, standardised, and loaded into a MySQL database using Python. A volume-weighted average price was computed for each commodity, state, and date, using arrival quantity as the weighting variable. These weighted prices were compared across states on a shared reference date to identify the cheapest and most expensive states. A minimum arrival quantity filter of 10 units was applied to exclude thin markets. The logic was exposed through an interactive Streamlit web application. As of 19 September 2026, the database contained 1,551,269 records across 32 states, 15 commodity groups, and 416 commodities. Of these, 346 produced valid recommendations. The largest spreads appeared in high-value commodities such as Chili Red, Arecanut, and Ginger. Maharashtra, Uttar Pradesh, Karnataka, and Madhya Pradesh appeared most often as the cheapest sources, while Keralam, Tamil Nadu, and Gujarat appeared most often as the most expensive destinations. The Chili Red spread between Uttar Pradesh and Maharashtra remained positive on all 64 days over a 90-day window. The study contributes a repeatable methodology for identifying spatial arbitrage opportunities in India's agricultural spot markets. It has practical value for traders, aggregators, farmer-producer organizations, and policy researchers.

Zenodo (CERN European Organization for Nuclear Research)
Economics of Agriculture and Food Markets
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