Pune |
In a major push to modernize agriculture and shield farmers from market volatility, Maharashtra Chief Minister Devendra Fadnavis inaugurated a dedicated Hedging Desk in Pune under the Balasaheb Thackeray Agribusiness and Rural Transformation (SMART) Project.
The initiative, launched in collaboration with the National Commodity and Derivatives Exchange (NCDEX) and its research arm NCDEX Institute of Commodity Markets and Research (NICR), aims to help farmers protect their incomes against unpredictable price movements.
The Hedging Desk is a special support center set up to help farmers protect themselves from sudden market price changes for their crops. It acts like an insurance system for crop prices.
Here’s how it works:
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Farmers usually face big losses when crop prices drop after harvest.
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This desk helps them use tools like hedging and options trading to lock in better prices in advance.
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If prices fall later, farmers still get the pre-decided (better) price.
The Hedging Desk will initially focus on cotton, turmeric, and maize, with plans to gradually expand to other crops. Farmers will be introduced to hedging and options trading—market tools that allow them to reduce risk and secure better prices for their produce.
Chief Minister Devendra Fadnavis called the move a major milestone for the agriculture sector, stating that it would help reduce risk and increase financial resilience among farmers.
“Hedging, like a fence protecting a farm, safeguards farmers from the risks caused by price fluctuations in the market. Its main purpose is to reduce the risks arising from potential price drops in the future. Farmers can also benefit from options trading, which allows them to lock in favourable prices,” The Chief Minister emphasized while launching the desk.
The project headquarters are based in Pune, with implementation planned across key agricultural districts including Yavatmal, Sangli, Akola, and Chhatrapati Sambhajinagar.
The Hedging Desk will support farmers in:
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Understanding commodity price trends
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Participating in options and futures markets
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Minimizing losses from sudden price drops
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Making informed crop planning decisions
Officials stated that farmers will also receive training on how to effectively use market instruments to reduce risks and maximize returns.
With this launch, Maharashtra becomes one of the first states in India to institutionalize hedging mechanisms at the farmer level, marking a significant step towards integrating traditional agriculture with modern market strategies.
