MUMBAI, 25 January 2021: In order to facilitate farmers with more avenues to sell their crops, National Commodity & Derivatives Exchange Limited (NCDEX) consistent efforts is now getting results after over 41 FPOs registered on their platform trader over 3000 tonnes of food grains.
At the time when farmers are protesting against governments farm bill, this can be a eye opener, where a farmers organisation are not shying away from taking alternative routes to sell produce.
Speaking on this, NCDEX EVP Aleen Mukherjee told AgriTimes, "With over 41 FPOs on board, a new era has begun where farmers directly can trade and have a alternative method of selling their produce. Our platform is for all. In or platform farmers and traders are equal."
During the past three months, over 2000 tonnes of rapeseed and 1000 tonnes of channa was tradedin option futures.
Over 100000 farmers from four states namely Rajasthan, Maharashtra, Gujarat, Madhya Pradesh participated in the trading.
NCDEX has started future options few months back and has been also conducting awareness program in two commodities , RM seed and channa to expand its reach.
NCDEX believes it will be a gamer changer in the agricultural trade in India.
Giving out more details about the options, the official said, these contracts would allow both, farmers and other participants in the value chain such as aggregators, farmers producers organisations (FPOs) and farmers producers companies (FPCs) to hedge the price risk in agricultural commodities before the actual sowing season begins.
Through this, farmers and other participants can lock their prices by paying a small premium in 'options in goods'; contracts and get the benefit of price volatility either side.
Through this mechanism, farmers and aggregators would be able to take a decision on sowing of any crops well ahead of the season by locking the price of their produce. This makes these contracts beneficial for both, farmers and aggregators.
Processing mills and other value chain participants may also lock their raw material prices in anticipation of both lean and peak supply seasons.
