Charu Bhatia, Senior News Editor, Business Remedies, in conversation with Mr. Kunal Karan Parakh, Founder and CEO of Full Circle Commodities From agricultural commodities to precious metals, global trade is shaped by a complex combination of demand, supply, weather, geopolitics, regulations and market sentiment. In such an environment, the role of a reliable intermediary becomes critical in connecting buyers and sellers across geographies while helping them navigate uncertainty and build trust. Based in Jaipur, Rajasthan, Full Circle Commodities (FCC) is a global agricultural commodity indenting firm that acts as a trade agent and intermediary for clients across international and Indian markets. The company deals in more than 30 commodities, including grains, pulses, oilseeds, vegetable oils, coffee, raw cashew and precious metals.
The company’s Founder and CEO, Mr. Kunal Karan Parakh, traces his association with the commodities market to his student years, when an introduction to commodity markets sparked an interest that eventually developed into a long-term career. Mr. Kunal is an MBA and a certified FRM professional with experience spanning commodity derivatives and international agricultural trade, he discusses the evolution of the sector, geopolitical disruptions, technology, compliance, India’s growing influence and why traceability could become the next major differentiator in global food trade.
Question: You are the founder of Full Circle Commodities. What is the company all about, and how has your journey been in this area since its initiation?
Answer: I would say the beginning of this business and the very thought behind it was that you don’t choose commodities; commodities choose you and they happen to you. In 2003, while pursuing my degree in Finance, my professor introduced me to the concept of the commodity market, and I was fascinated by it. In 2004, I joined TradeSwift as a management trainee. The real turning point in my career came when I joined the commodity derivatives desk at Kotak, where I spent 11 years. That was where my global learning happened and where I experienced significant growth in this area.
Commodity Derivatives markets in India have an interesting history. They were banned for trading in 1965 during the Morarji Desai government and reopened only in 2003. Therefore, when I entered the sector, it was still a developing market. Today, Full Circle Commodities is a global agricultural commodity indenting firm based in Jaipur. I am its Founder and CEO. We act as a trade agent and intermediary, helping clients source and trade agricultural commodities across international and Indian markets. We deal in more than 30 commodities, including wheat, corn, barley, sorghum, lentils, chickpeas, pigeon peas, oilseeds, vegetable oils, coffee, raw cashew and precious metals.
India meets a percentage of its pulse requirements through imports. We work with international clients looking to export agricultural commodities from countries such as Australia, Myanmar, East and West Africa, Canada and Russia, while countries such as India, China and other South Asian markets are major destinations. Our role is essentially to establish a reliable communication and business link between importers and exporters.
Question: What are some of the major challenges in the commodities market?
Answer: It is a highly volatile market. Prices can change depending on several factors, including climate conditions, international relations and trade policies. Another challenge is the lack of a fully formalised structure in certain parts of world, like in least developed nations. Two parties from different countries do not necessarily trust each other easily. This is where our role becomes important. We introduce the right associates and help both parties establish a level of trust before entering into a transaction.
Question: How is Full Circle Commodities different from other commodity trading/indenting companies?
Answer: I think the difference lies in how innovative and structured we are in our functioning. Instead of jumping to conclusions or reacting impulsively, we try to assess the actual market conditions. For instance, there were predictions in March about the negative impact of El Niño on agricultural production and trading. However, the impact eventually turned out a lot later. FCC remained focused on understanding the actual conditions rather than simply following predictions. We advised our clients to start procurement in June end and helped them source raw materials at an efficient price. Over-predicting can also be dangerous in this field. We focus on providing first-class assistance to both buyers and sellers. Another important differentiating factor is our business model. Many companies eventually move from indenting into their own trading operations. We have remained committed to being an indenting company. Our objective is to facilitate transactions and provide value to buyers and sellers without becoming a competing trader ourselves.
Question: What has been the impact of the Middle East crisis and wars on your business?
Answer: The impact has been huge and it is ongoing. Wars and geopolitical conflicts can significantly affect commodity trade. The Russia-Ukraine war, for instance, has had a major impact on global agricultural commodity trade, particularly wheat and yellow peas. The supply chain disruption has been driven substantially by maritime challenges in the Azov-Black Sea region, which has historically handled a significant share of regional grain exports. The Middle East crisis has also affected us considerably. Dubai is an important transit point for international trade. When additional charges are imposed for 4-5 months, it becomes necessary for us to communicate with the concerned parties and convince buyers or sellers to bear the additional costs. Such situations require negotiation, communication and, above all, trust between the parties.
Question: What are your views on the compliance framework for trading agricultural commodities between countries?
Answer: There is a structured legal framework for international agricultural commodity trading. 80 per cent of the world grain trade is governed and executed under GAFTA across more than 100 countries. There are pre-established rules for trading, and countries adhere to these frameworks. Such structures bring transparency into international trade and help transactions take place more smoothly between countries. For an indenter, understanding these regulations and ensuring that the parties involved are operating within the established framework is extremely important.
Question: Where do you think India stands in the global agricultural commodities market?
Answer: India has a very large consumer market, and that creates substantial demand. Along with China, India plays an important role in influencing global commodity markets. India is emerging as a dominant player in global agricultural commodities. Its demand can influence prices and determine how and where commodities are traded. At the same time, India also exports several agricultural products to international markets, which gives the country an important position on both the demand and supply sides. This combination makes India a significant market for global commodity players.
Question: How do you view the role of technology in the agricultural commodities market?
Answer: In today’s interconnected and highly technological world, information travels at an unprecedented pace, and that is extremely important for traders and indenters. However, technology has also increased the responsibility of indenters. With information moving so quickly, it has become essential to verify the authenticity and credibility of information and then decide on the timing to act on it. Technology can provide access to information, but information itself has to be verified. It is therefore crucial for professionals in this sector to remain educated about technological advancements and understand how to use them effectively.
Question: What bigger trend do you see emerging in agricultural commodities trading?
Answer: Most growing sectors change across different periods. Between 1965 and 1975, industries such as steel, automobiles and cement were major areas of demand. Later, durable consumer goods became important. With the development of technology, mobile phones and the internet emerged as major growth areas. In agricultural commodities, I believe the next major issue will be food adulteration and authenticity. The next phase of growth in the food industry will belong to organisations that can provide authentic and transparent information about their products. Traceability is going to be a game changer. Buyers increasingly want to know where a product has come from, how it has been handled, is there any adulteration in it and whether its quality can be verified. Businesses that can provide reliable information and transparency will have the key to success.
Question: What is the difference between trading agricultural and metal commodities?
Answer: The processes are quite different. In metal trading, the process is generally faster and the buyer can receive the product relatively quickly. Agricultural commodities, on the other hand, can take months to reach the buyer. At every stage, including shipment, documentation and contract execution, considerable time may be involved. There is also significant price risk because agricultural commodities are influenced by weather and other external factors unlike metals where there is no consistent hedging mechanism to manage price risk. Maintaining the required quality of a crop is another challenge, as agricultural quality can depend on several factors. Metals are comparatively stable in terms of their physical characteristics. Agricultural commodities are more dynamic because the product itself is influenced by nature and the conditions under which it is grown, stored and transported.
Question: What do you precisely do in the precious metal space?
Answer: We help investors enter into cash and carry arbitrage trades. We source and later sell the metals between credible market players across India.
Question: What are your future plans for the expansion of Full Circle Commodities?
Answer: Apart from India, we have representative offices in Vietnam, Indonesia, Tanzania and West Africa. We want to establish registered offices in other countries as well, including markets in South America and China. Our broader objective is to serve clients in the best possible way and make international commodity trading less stressful for them. We want buyers and sellers to be able to transact with confidence, knowing that the other party is reliable and that there is a trusted intermediary facilitating the relationship.
