Commodity markets were permitted by the government to free farmers from the clutches of local trade
rs, who used to form a cartel and buy the farmer’s produce at prices much lesser than market prices. The online version of commodity trading was intended to ensure that such “bonded” farmers could sell their produce online to millions of prospective traders across the world in an internet based commodity exchange for price discovery of their produce. And if they felt that they were still not getting the right price, they could sell it in futures market – at an agreed price they felt could be fetched after a few months when the demand for their produce could go up, increasing the market prices of the commodity. The exchange also provided a platform to foreign traders to buy Indian goods for their own markets. But hardly any farmer trades his produce on the exchange.
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy,
Initiative:- Prof. Arindam Chaudhuri
rs, who used to form a cartel and buy the farmer’s produce at prices much lesser than market prices. The online version of commodity trading was intended to ensure that such “bonded” farmers could sell their produce online to millions of prospective traders across the world in an internet based commodity exchange for price discovery of their produce. And if they felt that they were still not getting the right price, they could sell it in futures market – at an agreed price they felt could be fetched after a few months when the demand for their produce could go up, increasing the market prices of the commodity. The exchange also provided a platform to foreign traders to buy Indian goods for their own markets. But hardly any farmer trades his produce on the exchange.For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy,
Initiative:- Prof. Arindam Chaudhuri
