The factors that may lead to drop in demand for agricultural commodities

• Decrease in the consumer’s   disposable   income
• Decrease in the price of the close substitute.
• An increase in the price of the complement.
• Unfavorable change in tastes and preferences   of the consumer
• Expected fall in the future price of the commodity
• A decrease in the size of the population.
• Unfavorable   season of the commodity
• Unfavorable   government   policy like increased   taxation of consumers.
• Reduction in the advertisement of the commodity
• Withdrawal of credit facilities offered by the government   to consumers
• Changes in extreme weather that disrupts supply chain
• Health concerns about the safety of the product
• Changes in trade policy that may restrict export.

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