Author: Tirtha Chatterjee
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Farmers, especially small and marginal, do not directly trade in agri-futures market in India. Their small size, lack of trust and understanding of futures market and dependence on middlemen, are some of the main deterrents. The role of Farmer Producer Organizations (FPOs) is crucial in this context since they can procure commodities, aggregate them and ensure that size and quality standards required for agri-futures trade are met. In her Budget speech for Union Budget of FY20, the Union Finance Minister has set a target of creating 10,000 FPOs in the next five years (by 2024). NABARD has already been in this process of creating FPOs for the last few years (already has more than 3000 FPOs) and the major responsibility of scaling them with 10,000 new ones, is likely to fall on NABARD. Interestingly, NCDEX has also been trying to deepen FPOs participation in markets for the last few years. However, as our analysis shows that between April 2016 and May 2018 only a tiny fraction (0.004 percent) of overall agri-futures trade at NCDEX was through FPOs. This reflects the need for gigantic steps, if FPOs have to be involved in futures trading at any reasonable scale. The need is even greater if one considers the dire necessity of having forward looking cropping patterns, where farmers' planting decisions are based on future prices rather than last year's or even earlier year's prices. Keeping this in mind, the paper identifies the constraints in first linking farmers to FPOs and second, FPOs to futures market. Based on this research about constraints, the paper puts forward a few suggestions for the FPOs, NCDEX, as well as the government for better results: (1) Both FPOs and NCDEX need to focus initially on commodities not pereceived by the Government as 'sensitive' from food security point of view so that minimum disruption takes place in futures markets. This will help them gain confidence in the functioning of futures markets; (2) NCDEX needs to identify production centres, build delivery centres around them and encourage futures trading in these areas; (3) Resource Institutions involved in educating and hand-holding FPOs in futures trading, themselves need to upgrade their knowledge and skills about functioning of futures trading. Government policy and NCDEX both can help them in this direction; (4) Government initiatives like that of Bihar and Rajasthan can help scaling the efforts of linking FPOs to futures markets in other regions, (5) There could also be learning from small holder dominated agriculture of China, that has provided state support in linking farmers to futures, and helped customized products and reduce price distortions, (6) Government's trading arms can also be encouraged to directly participate in the futures market to give confidence to many others, including FPOs; and (7) Instruments like forwards and options have to be encouraged to invite greater participation by FPOs.
Author: Kushankur Dey
Publisher: Springer Nature
ISBN: 9811634327
Category : Business & Economics
Languages : en
Pages : 145
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Book Description
Futures markets offer numerous advantages in the marketing of agricultural commodities, and in this context, the book examines the major factors and issues that determine the participation of India’s farmers in the futures markets. These include the efficiency of the futures markets in price discovery, the convergence of spot and futures prices, the dissemination of spot price information, and the socio-economic and exchange-related issues affecting farmer participation. It also examines the factors affecting the demand and supply of participation, and the access to futures trading services. The purpose is to identify different factors that can enhance or constrain farmer participation in the futures markets, which may include market characteristics, institutional features, socio-economic issues, and behavioural aspects of farmer participation. A number of organizations related to rural development, as well as farmer producer companies have sought to facilitate farmer participation in the forward/futures market through offering aggregation and other trading services, and the book also examines these efforts towards the exchange-traded derivative markets and the direct and indirect benefits that accrue. The book also studies the efficiency of futures markets in price discovery and price dissemination applying co-integration tests, and error correction and volatility models, using available data of wheat, rapeseed-mustard, cotton, guar seed, castor, cumin and coriander futures contracts traded in the largest agricultural commodity exchanges in India. Besides, case studies are used to examine and understand the institutional roles of aggregators in aggregation efforts towards the forward/futures market. This book covers several states and locations in India to enhance the representation and validity of the findings. It also examines representative farmer organizations which have obtained institutional membership in the forward or futures markets, and identifies areas of further research. In the current scenario, the book would be of immense importance and relevance to governments, commodity exchanges/markets, aggregators, many private and development organizations, as well as interested researchers and students.
Author: Kushankur Dey
Publisher:
ISBN: 9789811634338
Category :
Languages : en
Pages : 0
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Book Description
Futures markets offer numerous advantages in the marketing of agricultural commodities, and in this context, the book examines the major factors and issues that determine the participation of India's farmers in the futures markets. These include the efficiency of the futures markets in price discovery, the convergence of spot and futures prices, the dissemination of spot price information, and the socio-economic and exchange-related issues affecting farmer participation. It also examines the factors affecting the demand and supply of participation, and the access to futures trading services. The purpose is to identify different factors that can enhance or constrain farmer participation in the futures markets, which may include market characteristics, institutional features, socio-economic issues, and behavioural aspects of farmer participation. A number of organizations related to rural development, as well as farmer producer companies have sought to facilitate farmer participation in the forward/futures market through offering aggregation and other trading services, and the book also examines these efforts towards the exchange-traded derivative markets and the direct and indirect benefits that accrue. The book also studies the efficiency of futures markets in price discovery and price dissemination applying co-integration tests, and error correction and volatility models, using available data of wheat, rapeseed-mustard, cotton, guar seed, castor, cumin and coriander futures contracts traded in the largest agricultural commodity exchanges in India. Besides, case studies are used to examine and understand the institutional roles of aggregators in aggregation efforts towards the forward/futures market. This book covers several states and locations in India to enhance the representation and validity of the findings. It also examines representative farmer organizations which have obtained institutional membership in the forward or futures markets, and identifies areas of further research. In the current scenario, the book would be of immense importance and relevance to governments, commodity exchanges/markets, aggregators, many private and development organizations, as well as interested researchers and students.
Author: Prabhu Pingali
Publisher: Springer
ISBN: 3030144097
Category : Business & Economics
Languages : en
Pages : 382
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Book Description
This open access book examines the interactions between India’s economic development, agricultural production, and nutrition through the lens of a “Food Systems Approach (FSA).” The Indian growth story is a paradoxical one. Despite economic progress over the past two decades, regional inequality, food insecurity and malnutrition problems persist. Simultaneously, recent trends in obesity along with micro-nutrient deficiency portend to a future public health crisis. This book explores various challenges and opportunities to achieve a nutrition-secure future through diversified production systems, improved health and hygiene environment and greater individual capability to access a balanced diet contributing to an increase in overall productivity. The authors bring together the latest data and scientific evidence from the country to map out the current state of food systems and nutrition outcomes. They place India within the context of other developing country experiences and highlight India’s status as an outlier in terms of the persistence of high levels of stunting while following global trends in obesity. This book discusses the policy and institutional interventions needed for promoting a nutrition-sensitive food system and the multi-sectoral strategies needed for simultaneously addressing the triple burden of malnutrition in India.
Author: Sriganesh Lokanathan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Farmers in developing countries are often unable to engage effectively in agricultural markets in their countries since these markets are prone to inefficiencies (Barret, 2005; Fafchamps, 2004; World Banks, 2002 amongst others). Small and subsistence farmers in particular tend to have unfavorable linkages to markets due to a lack of market orientation (Timmer, 1997). The commercialization of agriculture and the subsequent structural complexity it has induced in the food system has meant that poor farmers face higher transaction costs to access competitive markets (Pingali et al, 2005; Pingali, 2006). The lack of effective engagement translates into the inability of farmers to utilize market information in their livelihood decisions. These suboptimal decisions in turn restrict the possibility for farmers to leverage their produce or commodities to improve and sustain their incomes, by engaging, for instance, in financial instruments such as forward contracts. The inability to enter into such contracts precludes them from access to crop insurance and working capital loans using their produce as collateral (e.g., a forward contract or commodity backed financing using warehouse receipts). Providing access to accurate and timely market price information without physically visiting markets is the first step in reducing the transaction costs and allowing farmers to engage effectively in agricultural markets. Ratnadiwakara et. al., (2008) argue that provision of market price information in a timely manner reduces information asymmetry, which in turns allows farmers to reduce their transaction costs while also increasing their bargaining power in market transactions (also Jaleta & Gardebroek, 2007). A crucial benefit of having access to market price information (especially forward and/or future prices) is that it gives farmers more control over their crop planting and harvesting schedules which they can then optimize so as to align their agricultural outputs to meet the demand in local and external markets. This in turn would help facilitate a more stable revenue stream from their produce. ICTs can play an important role in bridging the information deficiencies and can provide access to markets. From pure market price dissemination to more sophisticated systems that link farmers to output markets, ICTs can play an important developmental role. Its potential as a poverty alleviation tool has been recognized and countless examples exist in the developing world of initiatives to improve farmers' livelihoods via ICT driven linkages to markets.
Author: Ashok Gulati
Publisher: Springer Nature
ISBN: 9813342684
Category : Business & Economics
Languages : en
Pages : 324
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Book Description
This open access book provides a clear holistic conceptual framework of CISS-F (competitiveness, inclusiveness, sustainability, scalability and access to finance) to analyse the efficiency of value chains of high value agricultural commodities in India. It is based on the understanding that agriculture is an integrated system that connects farming with logistics, processing and marketing. Farmer’s welfare being central to any agricultural policy makes it very pertinent to study how a value chain works and can be strengthened further to realize this policy goal. This book adds value to the existing research by studying the value chains end-to-end across a wide spectrum of agricultural commodities with the holistic lens of CISS-F. It is not enough that a value chain is competitive but not inclusive or it is competitive and inclusive but not sustainable. The issue of scalability is very critical to achieve macro gains in terms of greater farmer outreach and sectoral growth. The research undertaken here brings out some very useful insights for policymaking in terms of what needs to be done better to steer the agricultural value chains towards being more competitive, inclusive, sustainable and scalable. The value chain specific research findings help draw very nuanced policy recommendations as well as present a big picture of the future direction of policy making in agriculture.
Author: Carlos A. Da Silva
Publisher: Food & Agriculture Organization of the UN (FAO)
ISBN:
Category : Business & Economics
Languages : en
Pages : 236
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Book Description
This book aims to typify the extent to which contract farming is helping small farmers to access markets and meet increasingly stringent requirements, not only of "modern" food manufacturers, retailers, exporters and food service firms,by also in non-food sectors such as biofuels and forestry. It also seeks to clarify differences in the functionality of contracts depending on commodity, market, technology, public policies and country circumstances. Conceptual issues are discussed and a series of case study appraisals based on real world examples from developing regions are presented. The issuesraised by the case study authors and the key messages synthesized in the initial book chapter bring new insights and contributions to further enrich knowledge on contract farming as a tool for inclusive market access in development countries.
Author: K. McKague
Publisher: Springer
ISBN: 113737375X
Category : Business & Economics
Languages : en
Pages : 377
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Book Description
Most studies of doing business at the "bottom of the economic pyramid" focus on viewing the poor as consumers, as micro-entrepreneurs, or as potential employees of local companies. Almost no analysis focuses on the poor as primary producers of agricultural commodities a striking omission given that primary producers are by far the largest segment of the working-age population in developing economies. Making Markets More Inclusive bridges the management literature with original research on agricultural value chains in developing and emerging economies. This exciting work is the first to delve into the skills, capabilities, strategies and approaches needed for inclusive value chain development. McKague shows how NGOs and companies can connect poor producers in developing economies with the right markets to better create social and economic impact. He also analyzes one of the leading agricultural value chain initiatives in the world, which is being replicated by the Bill and Melinda Gates Foundation in several different value chains in Malawi, Tanzania, Ghana, India, and Mali. Want more? Check out these compelling videos, which provide a glimpse into the stories and examples used throughout the book. Video Trailer for Making Markets More Inclusive. Farmer Training. Kallani Rani increased the productivity of her cows, become a cattle feed seller in her village (Chapter 6), and opened a fresh milk canteen in her local market (Chapter 7). She now trains other women farmers and works to improve opportunities for women in her community (Chapter 5). Animal Health Care Services. Asma Husna trained to be an animal health worker with CARE to provide important animal health services and education to local farmers on a fee-for-service basis (Chapter 6). Cattle Feed Shops. Fulera Akter started a business as a cattle feed seller after demand for nutritional animal feed grew due to farmers' improved knowledge of nutrition (Chapter 6). Savings Groups. Coauthor Muhammad Siddiquee, the Coordinator of Agriculture and Value Chain Programs at CARE Bangladesh, discusses the value of farmer savings groups (Chapter 6). Milk Collection. Sarothi Rani became a milk collector to earn an improved income for her family and provide an important service to other dairy farmers in her community (Chapter 7). Digital Fat Testing. Introducing digital fat testing machines into the dairy value chain helped reward farmers for making investments in producing higher quality milk, as well as ensuring transparent and timely payments (Chapter 7). Microfranchising. Supporting agricultural input shop owners with training, relationships to suppliers, common branding, and standardized customer services improves the productivity of smallholder farmers and the profitability of shops (Chapter 12). Bangladesh Dairy Value Chain Learning. Reflections from some of the 40 CARE staff from 17 countries who came to Bangladesh to learn from the experience of the dairy value chain project (Chapter 15).
Author: C. Shambu Prasad
Publisher: Taylor & Francis
ISBN: 1000890589
Category : Business & Economics
Languages : en
Pages : 293
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Book Description
This book studies the management challenges and possibilities in sustaining farmer producer organisations (FPOs). It goes beyond the conventional metrics of cost-benefit analysis by drawing on 15 case studies of diverse FPOs spread across India to fill a significant knowledge-practice gap in the domain of producer collectives. The book explores issues of ownership and governance, studies the empirical basis for policy decisions on FPOs, and provides actionable insights and knowledge, keeping in mind the complexity of the institutional design of an FPO. It also discusses the envisioned role of civil society organisations in supporting FPOs and looks at the kind of institutional innovations that are needed to create a cohesive ecosystem for FPOs. A unique collaborative project jointly authored by academics and development practitioners, the book will be of use to students and researchers of agricultural economics, environment and business, agricultural development, environmental economics, rural studies, entrepreneurship, and South Asian studies. It will also be of interest to development professionals, civil society organisations, and policymakers.
Author: Ochieng, Dennis O.
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 27
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Book Description
Small farmers and traders often lack the market information they need to earn the most from their crop sales. This paper analyzes the effects of an action research experiment in central Malawi, in which four groups of smallholder farmers were provided with maize and soybean price information from a local commodity exchange during the 2019 marketing season, while four other groups of smallholder farmers did not receive this information. Using data from a panel survey of 399 farmers and 78 traders conducted before and after the main marketing season and using kernel propensity score matching approach to account for possible differences between the treated and non-treated farmers, we estimate the effects of the intervention on a number of outcome indicators. A before versus after analysis was also employed to evaluate changes in traders’ marketing outcomes. We find positive but statistically insignificant effects on maize and soybean selling prices, sales through structured markets and levels of commercialization after the intervention. We also find a negative and statistically significant effect on the quantity of maize sold by farmers, suggesting paradoxically that providing farmers with price information reduced their sales volumes. The proportion of traders aware of structured markets and their share of sales through structured markets also increased significantly after the intervention. The quantity of maize sold by traders as well as the selling prices for maize and soy-bean also increased significantly, although this may be due to factors other than the intervention. The study concludes that provision of price information alone is not enough to facilitate small farmers’ and traders’ use of structured markets. Greater effort is needed to sensitize farmers and traders on the quality and quantity requirements as well as the operations of structured markets.
