January 21, 2012 admin

Awareness programme on commodity exchange functioning held at CIPHET

Ludhiana, January 21: “GPRS enabled electronic ticker boards would be installed in different Krishi Vigyan Kendras (KVK’S) for facilitating farmers to get maximum of their produce and reduce risk of falling prices,” this was revealed by Zonal Project Director of Indian Council of Agricultural Research Dr A.M Narula, during an ‘Awareness on price dissemination of agricultural commodities through KVK’s here today at Central Institute of Post Harvest Engineering and Technology (CIPHET). Subject Matter Specialists from different KVK’s from north zone participated in awareness programme.
Speaking on the occasion, Dr Narula said that at first phase 40 such electronic ticker boards would be installed at selected KVK’s. “These would be displaying information of both commodity exchange and spot prices of agriculture markets,” he said, informing that better information about markets and rates on commodity exchange will benefit farmers to get possible price of their produce.
Saying that everybody is eyeing for market, Dr Naruala, said that about 10 years back very few very were aware about online trading of shares and now many have entered into this market. Slowly, farmers will start taking part in commodity market realizing its potential to fetch best prices,” he added. Director CIPHET Dr R.K Gupta said that installation of the electronic tickers linked with commodity and agriculture market would help farmers to take more informed decisions. He stressed need to create maximum awareness in farmers.
Director Extension PAU Dr M.S Gill revealed that farmers growing onions in Nasik district of Maharashtra were grossly benefited by commodity market. “They are able to protect expected price onions through future contracts,” he said, adding that but complexity of Indian agriculture scenario could not be ignored. “Around 67 percent of Indian agriculture is rain feed, thus large section of farmers cannot enter into any future contract to supply particular quality and quality of crops to any trader in commodity market,” he asserted.  Dr Desh Raj, Director Extension, CSK Himachal Pradesh Agricultural University, also advocated need for better marketing linkages for farmers.
Ashok Pancholi, Assistant Vice-President, Multi Commodity Exchange of India (MCX), said that in year 2003 government of India allowed commodity exchange to operate under regulator Forward Market Commission to remove market inefficiencies. “This was done to bridge gaps of fragmented markets, inadequate information and credit etc,” he added. “Commodity market will help in solving problems of farmers including what to produce, finance and marketing by linking through one national platform of buyers and sellers.
Vinit Singh Kaler, Domain Expert MCX, said every day around Rs 60 thousand crore of commodities are traded on commodity exchanges and five such exchanges are operating in the country.  He revealed that by opting for price protection instrument of hedging for future contracts, farmers could protect risk of falling prices of certain commodities.

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