The farmers producer organisations’ (FPOs) are increasingly participating in commodity bourse- NCDEX (National Commodity and Derivatives Exchange) to sell their assorted farm goods which has led to higher price realisation for their members through hedging. On the NCDEX platform during April-November 2025-26, farmers collectives have sold over Rs 444 crore worth of agricultural commodities – cotton, cumin, castor, coriander, turmeric, cotton seed oil cake and guar-seed.
These collectives started to use the commodity platform from FY25.
NABARD has started to provide premium assistance to farmers’ collectives for facilitating put options on spices on commodities – coriander and cumin, which has allowed FPOs to lock in prices at pre-sowing level.
Hedging Advantage
Sources said that Maharashtra based Naadbramha Agro Farmer Producer Company sold over Rs 75 crore of agricultural commodities – turmeric, guarseed and cotton seed oil on NCDEX, followed by Madhya Pradesh based Soyamassagro Farmer Producer Company, which sold commodities valued over Rs 44 crore in FY26.
“We are aiming to do trading of around Rs 100 crore by the end of current fiscal on NCDEX platform,” Namdeo Budhewar, CEO, Naadbramha agro farmer producer company, based in Nanded, Maharashtra, told FE.
Similarly, Gujrat based Santalpur Farmers Producer Company, has sold about Rs 22 crore, and Sambhal Krishivikas Producer Company from Rajasthan does sales of around Rs 18 crore on the commodity bourse this fiscal.
Trade on the platform has ensured that 39 farmers’ collective have clocked sales in excess of Rs 1 crore in FY26.
“We support FPOs by providing market access, training, and risk management tools to enhance produce sales across the country. These efforts connect FPOs to exchange platforms, enabling hedging in 23 commodities across 16 states, with 1.13 million farmers represented by 624 farmers’ collectives,” Arun Raste, MD, NCDEX told FE.
Raste said through NCDEX e-Markets (NeML), FPOs buy and sell produce on spot markets and farmers collectives use NCDEX’s futures and options trading to hedge price risks.
Demand for Market Expansion
Meanwhile, commodity exchange MCX also initiated onboarding of the FPOs on their platform.
According to an agriculture ministry official, trading on commodity exchanges provides farmers’ collective access to price discovery, transparent transactions and a wider buyer base.
Farmers’ groups have also stated that more commodities should be opened up for future trade while the Securities and Exchange Board of India has extended the suspension of trading in derivative contracts for seven agricultural commodities – paddy (non-basmati), wheat, chana, mustard seed and its derivatives, soybean and its derivatives, crude palm oil, and moong till March 31, 2026.
5.6 million farmers parf 10,000 FPOs
According to the ministry, over 5.6 million farmers have joined 10,000 FPOs in five years under the central scheme aimed at boosting collective bargaining, lower input costs, and higher sales. With women holding 38% share, FPOs clocked Rs 15,282 crore turnover, aided by govt support and digital platforms.
In FY25, 340 FPOs have crossed Rs 10 crore sale turnover, while over 1100 farmers collectives have reported sales exceeding Rs 1 crore. Cumulative turnover of these farmers’ collectives have crossed Rs 15,282 crore.
Over 9,450 FPOs are currently on board the government’s e-commerce platform ONDC. Over 200 collectives are selling their products on platforms such as GeM while sales of agri-produce have also commenced in a significant way via Amazon and Flipkart.
Several farmers’ collectives formed in the last five years through the central sector scheme have also carried out procurement of oilseeds, pulses and grain under minimum support price (MSP) to boost their businesses.