New Opportunity to Farmers, the Commodity Hedge

Abstract

In an ironic manner, we get news by the NCRB ( National Crime Records Bureau) , as 16,632 farmers, including 2,369 women, killed themselves last year (2014), con stituting 14.4% of the total number of suicides in the country. A Situation of Farmers study undertaken by the NSSO ( National Sample Survey Organization) of the Government of India indicates that 40% of farmers, given a choice wish to get out of agriculture. Agriculture is subje cted to high risks because of the volatile nature of the factors invol ed. Herein, we poring on Price Movement risk to get a reasonable return on the time and money invested by farmers to get rid of aforesaid issue up to a great extent. T o address it, integration of Farmer Producer Company & Commodity Futu re market (hereafter-Commodity Market) looks to be o ne plausible solution via Hedging to offset the afores aid risk.