Date:12/10/2007 URL: http://www.thehindubusinessline.com/2007/10/12/stories/2007101250391500.htm

Back ‘Participating in futures will get farmers better prices’

Our Bureau

Mumbai, Oct 11 The commodity futures market needs to be broadened and deepened with wider participation including farmers, stressed the National Workshop on Commodity Research organised by NCDEX Institute of Commodity Markets & Research.

Speaking at the workshop, Dr Arjun K. Sengupta, Chairman of National Commission for Enterprises in the Unorganised Sector, said there is a “need for broadening and deepening of the (commodity) futures market to improve its efficacy as a genuine price discovery and hedging mechanism.”

He also advocated wider farmer participation in the commodity trading platform for better price realisation for their produce. Dr Sengupta emphasised the urgent need for more inclusive economic development involving the multitude of currently marginalised sections.

Addressing the National Workshop on Commodity Research organised by NICR, Dr Sengupta wanted the institute to sponsor research on the impact of price behaviour, overt or covert impact of futures trading on inflationary pressures.

He said research effort must support participation of investors by evaluating risk management practices and internationally accepted hedging strategies in the Indian context.