AN EVALUATION OF FARMERS’ PERCEPTION ON AGRICULTURAL COMMODITY DERIVATIVES

Abstract

Commodity derivative markets in India has a long history. The operations in this segment have however been topsy-turvy. Frequent bans on trading had somewhat retarded the growth of derivatives market in India. The adoption of liberalized economic policies saw the change in the attitude of policy makers and this led to the establishment of exchanges which offered online trading on multi-commodities. However, the stakeholder groups which ought to be benefited the most, at least in papers were often neglected. The present study is intended to find out the perception of farmers regarding the functioning of commodity futures markets in India. The study brings to light the source of information regarding derivative trading, their involvement in trading, the problems faced by farmers which keep them away from frequent trading and their opinion on overall impact of agricultural commodity futures.