PUNE, 27 June 2025: In a landmark move to protect farmers from market price volatility and help them secure fair incomes, the Maharashtra government on Friday launched a hedging desk in Pune under the Balasaheb Thackeray Agribusiness and Rural Transformation (SMART) Project.
The hedging desk, created in partnership with the National Commodity & Derivatives Exchange (NCDEX) and its research arm, the NCDEX Institute Of Commodity Markets and Research (NICR), will initially focus on cotton, turmeric, and maize before expanding to other crops.
Chief Minister Devendra Fadnavis described the initiative as a significant step toward modernising Maharashtra’s agriculture sector.
“Hedging acts like a fence protecting a farm — it shields farmers from market risks,” the CMO statement said, adding that options trading will help farmers lock in favourable prices and safeguard against sudden market downturns.
The hedging desk will train over 3,000 farmers on tools and strategies to manage risk through commodity derivatives. It will also provide real-time market intelligence, supply-demand insights, and global price trends.
Additionally, the desk will work with Farmer Producer Organisations (FPOs) and Cluster-Based Business Organisations (CBBOs) to build technical capacity on commodity contracts and risk management.
At least 50 FPOs engaged in the production and marketing of cotton, turmeric, and maize will be registered and supported to trade actively in futures markets, officials said.
A risk management cell will develop mitigation strategies, publish annual commodity risk reports, and promote the establishment of storage centres closer to farms.
“Despite successful harvests, farmers struggle with income uncertainty due to price swings,” the statement explained, adding that hedging tools will empower them to plan finances with greater confidence and invest in their operations.
A formal agreement to set up this hedging facility was signed on April 8, 2025, between the SMART Project and NCDEX. Priority will be given to farmers in cotton, turmeric, and maize belts across Hingoli, Washim, Sangli, Yavatmal, Akola, Nanded, Amravati, Chhatrapati Sambhajinagar, and Beed.
The hedging desk will not only equip farmers with price security but is also expected to transform the state’s rural economy by promoting financial literacy and resilience against market fluctuations.
