InvestorQ : Can the commodity markets help India achieve food security?
priya Shah made post

Can the commodity markets help India achieve food security?

Answer
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Dawn Cherian answered.
2 years ago


How does the government of India achieve food security through the commodity markets? We recently saw a report about grains worth over Rs.800 crore that were destroyed in Punjab due to bad warehousing. Currently, this is the risk that the farmer is forced to take. These farmers can use the futures market more effectively by selling futures on their grains and locking in a price. This will ensure that farmers are not susceptible to the fluctuations in the prices. Currently, farmers are being hit by weak pulses prices due to oversupply in the Indian market. This can be overcome by selling futures on these pulses at a price that is remunerative for the farmer. In many Western markets, farmers actively use the futures market to hedge their price fluctuation in case of agricultural products.