Commodities  Buying

We can divide bulk buying in commodities  , engineering  and packaging .

Commodities are  seasonal in  nature  and prices fluctuates as per the seasons  with supply
and demand effects on price .

Some material   have impact on price due to seasons such as cement , paint  etc are
cheaper  in rainy  season  to buy then to buy them in any other season .Similiarly for agri
commodities prices are on lower side when  we have harvesting season . Similiarly sugar  
prices ae higher side on festival season .

One has to be alert to anticipate any increase or decrease in prices . These can be
monitored through agencies giving services on prices .

The basic principle for company is to hold the stocks when prices are high and procure when
prices are low  in larger volumes . Such decisions  depends on stock in hand for a company
and   the  storage capacity available .
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