IVPA calls for lifting suspension on oil seeds commodity derivatives
Indian Vegetable Oil Producers Association (IVPA) feels that better price risk management and price discovery can come through revoking the suspension of the oil seeds commodity derivative contracts.
Sudhakar Rao Desai, CEO of Emami Agrotech and president of IVPA said «The agri industry and agriculture commodities and ecosystem which comprises of various participants and stakeholders, who contribute substantially to India’s agri value chain and agri economy has suffered immensely due to the protracted and prolonged suspension of exchange-traded commodity derivatives. IVPA has been a strong proponent of supporting the cause of income improvisation and enhanced price risk management. „
“IVPA believes that better price risk management and price discovery can come through revoking the suspension of the oil seeds commodity derivative contracts. In light of the findings that the studies conducted by leading economic study institutions such as BIMTECH and SJM School of Management, IIT Bombay has clearly articulated – that futures trading not only aids the process of price discovery and sets pricing benchmarks for agri commodities across spot markets, eventually impacting the retail markets positively – but allows for better crop planning at the farmers end, ultimately benefiting the entire value chain,» he said.
Regarding the study, Sarthak Gaurav, professor (economics), at Sailesh J Mehta School of Management, IIT Bombay said «Our study attempts to evaluate the impact of the suspension of agricultural commodity
