Farmers or FPOs can lock selling price at sowing time to manage price risk
Ashok Dalwai, CEO of the National Rainfed Area Authority, said at NCDEX Commodities Award 2022 that people in the value chain use futures and options to protect themselves from price risks and make sure their businesses can stay open. He said that with put options, farmers or FPOs can lock in their selling price at the time of planting, which is a great way to manage price risk.
The National Commodity and Derivatives Exchange of India (NCDEX), the country’s largest agriculture-based commodity exchange, NCDEX Commodities Award 2022 held in Mumbai on Thursday.
Mr. Dalwai further talked about how important it is to have a strong, well-regulated futures market because it helps build a strong marketing infrastructure for agriculture, especially in the area of storage.
The Hindu BusinessLine won the NCDEX Commodities Award 2022 on Thursday for being the best daily newspaper in the print media to cover commodities.
In different categories, awards were given to 58 people and organizations. Four FPOs, one from each of the states of Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan, were given awards for using the best farming and agri-marketing practices.
Two Resource Institutions were also given awards for helping FPOs in a big way. In the group of institutional participants, the winners were Tata Mutual Fund and Alpha Alternatives.
Arun Raste, the Managing Director of NCDEX, said that the Commodity Awards, which were started as a small way to thank stakeholders three years ago, have become so popular that the awards’ scope and categories need to grow.
He also said that the exchange is committed to building up the commodity derivatives market so that the country has a strong platform for risk management.
Narinder Wadhwa, the National President of the Commodity Participants’ Association of India, said that the Association wants to work with the regulator, the exchange, experts, exchange members, and other people in the value chain to help the market grow.
He said that CPAI has planned a series of programs to teach our members, FPOs, and other participants about hedging and help them learn new skills.