With the Centre supporting hedging mechanisms for cotton and maize through exchanges and commodity boards, soyabean farmers in Maharashtra have voiced frustration over being excluded from futures trading — a key tool to manage price risk in agriculture.
🔍 What’s Happening?
The hedging desk initiative is being rolled out to help cotton and maize growers lock in prices and reduce market unpredictability.
Soyabean, despite being a major Kharif crop and facing frequent price volatility, has not been included in the official hedging support system.
Maharashtra soyabean farmers argue this exclusion deepens their exposure to market crashes during peak harvest.
💬 Farmers Say:
“We are the largest soyabean producers in the country. Why are we not allowed futures access like cotton and maize farmers?” — a farmer leader from Latur.
📈 Why Futures Matter for Farmers
Price Protection: Futures trading allows farmers to secure a price for their crop before harvest.
Better Planning: Knowing future rates helps in managing input costs.
Market Transparency: Futures prices can guide real-time rates in mandis.
🏦 Regulatory Concerns
Authorities and commodity exchanges cite concerns over volatility, lack of awareness, and past regulatory curbs as reasons for cautious inclusion of new crops like soyabean into futures.
❓FAQs
Q1. What is a hedging desk in agriculture?
A: It’s a system that helps farmers use commodity futures to lock in prices in advance, protecting against market swings.
Q2. Which crops currently benefit from hedging desks?
A: Cotton and maize have been prioritized by regulatory authorities.
Q3. Why is soyabean excluded from futures trading?
A: Concerns include market volatility, speculative activity, and lack of farmer training.
Q4. What do Maharashtra farmers want?
A: They want inclusion in the futures market to safeguard their earnings, especially amid uncertain monsoon and price conditions.
published on 30 june
Publisher : SMITA
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