Wheat as scrip? UP farmer is all game

Prashant Srivastava / TNN / Feb 3, 2006, 01:52 IST

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NCDEX which specialises in trading of commodities such as wheat, pulses, jaggery etc., is to expand its operation in the state.

LUCKNOW: Don't be amazed if in the near future you find an anphad (illiterate) kisan of Uttar Pradesh racking his brains to find a better sale value of his produce by using 'futures' and 'options'.
This is used by the best brains in stock and commodity exchanges to get better value of asset by speculating the future prices and trading their holding on a later date.
National Commodity and Derivative Exchange (NCDEX), the biggest commodity exchange of India, which specialises in trading of commodities such as wheat, pulses, jaggery etc., is all set to expand its operation in the state.
The exchange has decided to reach the farmers of the state directly and assist them in trading their produce on the spot (as per prevalent mandi rates) or hold it back for some time so that he can sell it in the future, when the price of the commodity is high.

The modus operandi is simple. The NCDEX will be establishing a centre in the state capital with assistance from its active members in the state.
The centre will provide the farmer better know-how of agricultural practices through NGOs working in their district and when the crop is ready, the exchange will offer the farmer an opportunity to trade their produce.
This is the point where lies the difference with traditional selling. When the farmer will come to specially designated centres of the exchange to sell his produce, he will be given complete information as to what the price is today and what will be the price of the commodity in 1-6 months down the line (which in all probability will be higher than the present price).

In case the farmer decides to hold back his commodity for future sale, the sister concern of NCDEX, National Collateral Management Services Limited (NCMSL) will provide the farmer the facility of warehousing and will also give them loan assistance so that they can raise their next crop, even while the earlier yield lies in the warehouse for future sale.
The active agent of NCDEX in the state capital Sadhana Agarwal told The Times of India, "non-government agencies operating in each district will inform farmers individually on better agricultural practices.
This will include weather and soil condition, better seeds and manure, crop cycle, availability of agri-equipments and how to get them cheap and also on crop insurance.
This will be loosely a replica of currently operational Kisan Seva Kendra which are call centres erected by the state government to provide agri related information to the farmers in the villages."
Agarwal says, that "the exchange will step in when the yield is ready. Even though the farmer is free to trade his produce where ever he wants, the exchange will erect special hubs in each district of UP where he can sell the produce.

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