Farmers’ participation in futures platform of National Commodity and Derivatives Exchange Limited (NCDEX) is picking up in Gujarat as trading on it has given nearly 20% more returns to the farmers.
By- Vimukt Dave
Farmers’ participation in futures platform of National Commodity and Derivatives Exchange Limited (NCDEX) is picking up in Gujarat as trading on it has given nearly 20% more returns to the farmers. So far, six farmer producer organisations (FPOs) have been registered on NCDEX, of which three FPOs are active on futures platform. Companies like Reliance and IFFCO Kisan Sanchar Limited are promoting these FPOs in the state to educate the farmers for better price realisation.
Recently, Rajeshwar Farmers Producer Company from Vav taluka of Banaskantha district has sold about six tonne of jeera on NCDEX and it has received about 23% more price than physical market. The FPO has 230 shareholders and is considering trading in castor next season.
“After getting sufficient education from the exchange and IFFCO Kisan experts, we have decided to participate on futures market platform and we are also expanding our member strength from current 230 to 500 in next three to five months,” said Mavjibhai Patel, managing director of Rajeshwar FPO.
The FPO has procured about 10 tonne of jeera from members at `3,220 per 20 kg, of which, it has sold six tonne at about `4,000 per 20 kg on NCDEX.
According to sources in NCDEX, the FPOs have traded more than 13,000 tonne in 13 commodities like maize, soybean, RM seed, barley, wheat, cotton seed oil cake, guar seed, castor and jeera. FPOs from Gujarat have contributed around 50 tonne and have mainly traded in guar seed, castor and Jeera.
Another FPO, Banas Farmers Producer Company, from Patan district had traded guar seed on NCDEX few months back and earned about 20% profit.
Babubhai Thakor, director of Banas FPO said, “With guidance of the exchange we have traded about 22 tonne of guar seed on futures platforms. This has given us over 20% profit than spot market. Now we are planning to trade jeera in futures.” Banas FPO has nearly 800 members and it will double it member strength by end of December this year.
The Exchange has started giving training to supportive agencies like the Small Farmers’ Agribusiness Consortium (SFAC) and National Bank for Agriculture and Rural Development (NABARD). These agencies also create awareness among traditional farmer communities and become a bridge between commodity futures and the farmers.
“NCDEX is equipping farmers with access to regulated markets and helping them in price discovery while partnering with every stakeholder in the commodity value chain. The Exchange has decided to create awareness by educating farmers across the country and is planning to reach over 3 lakh farmers by March 31, 2018,” said Samir Shah, managing director of NCDEX.