Agro - Commodity Stocks: A great place to invest in and multiply your wealth over the next few years

Big fallout of the financial crisis of 2008 is the reduction or complete removal of farm subsidy by many developed countries to finance their fiscal stimulus. This together with climatic changes leading to crop failure in many places, rising oil prices leading to diversion of sugar, corn and other food products towards manufacturing of ethanol and rising population and per capita nutrition levels in the third world countries is bound to lead to food shortages in many parts of the world in the near future. This trend of rising demand for agriculture produce coupled with shrinking supply is likely to last for at least a couple of years. Companies trading in agro commodities and having well established avenues of sourcing farm production are likely to reap huge benefits in the future. Hence investors with a long term horizon, two or more years, may consider buying stocks of companies having a sound presence in agriculture and rural marketing. ITC is one such company which has over the years built a very strong foundation in trading and export of agro commodities. Moreover their rural marketing initiative - e-choupal will give them exceptional access to agricultural produce. Some other stock ideas in this regard are Karuturi Global, KS Oils and Ruchi Soya. Even sugar stocks like Balrampur Chini, Bajaj Hindustan and Renuka Sugar should benefit from rising demand for ethanol and increasing consumption levels.