Connecting Farmers to Markets

FPO update – March 2020

 Snapshot FPOs On-boarded 260*
224
FY 19-20
135
FY 18-19
64 5,26,451
FY 17-18
2,56,952
FY 16-17 2,09,283
s
1,22,085
260*
Farmer Producer Organisations
No. of farmers representing the FPOs
(FPOs) *Cumulativefigures
have opened accounts

5,26,451
Farmers represented by all FPOs Repeat trades by FPOs
40 35.7
13 35
States covered 30
24
25 22 21
17 20
15 11 11 12.4
Commodities traded
10 6
5
99 0
FPOs Traded on the NCDEX platform FY 16-17 FY 17-18 FY 18-19 FY 19-20

Quantity traded ('000 MT) No. of FPOs

34,219
Traded Quantity MT

Progress 2016-20 (Traded Quantity MT)

2,34,721
Farmers represented by trading FPOs

68,665 11,698 24,337 30,519 34,219

Farmers registered for Price
dissemination (SMS Service)

*(All figures 2016-19) FY 16-17 FY 17-18 FY 18-19 FY 19-20

*Cumulativefigures

*GeofinComtrade Limited has surrendered their membership, so 19 FPO accounts have become inactive. Efforts are being made to
re-register the FPCs with other members.

Connecting Farmers to Markets 1 March 2020

Quantity Traded (MT) FY 19-20
COMMODITY WISE TOTAL TRADED QUANTITY COMMODITY WISE TOTAL DELIVERIES
Turmeric, Castor, Chana,
Turmeric, Castor, 40
110
Jeera, 105 100 210 COCUD,
100
140
Wheat, Chana, 80
140 Dhaniya,
50 Jeera, 27

Maize, RM Seed,
970 20

Soybean,
Soybean,
1,675 RM Seed, 350
200

Summary
Cumulative
S.No. Particulars FY 19-20 Jan-20 Feb-20 Mar-20
2016-20
1 FPOs On-boarded 36 2 1 1 260
2 Total Farmers Base 2,62,875 61 1,900 50 5,26,451
3 FPOs Traded 31 5 7 5 99
4 Farmers Base of FPOs Traded 1,83,788 1,58,987 1,60,754 6,394 2,34,721
5 Commodities Traded 10 3 3 4 17
6 Quantity Traded (MT) 3,700 218 165 155 34,219
7 Traded Turnover (Rs in Lakh) 1,399 148 56 64 8,445
8 Delivery Given (MT) 617 112 50 29 5,222
9 Delivery Taken (MT) 0 0 0 0 70
Turnover of Delivered
10
Quantity (Rs. Lakh) 309 63 18 20 1,151
11 Farmers Base 1,377 178 75 44 10,376
Note: 3 FPOs participated in Soybean options and 1 in Guar Seed option with total traded volume of 60 MT.

Connecting Farmers to Markets 2 March 2020

State – Stats February2020
Particulars Gujarat Madhya Pradesh Maharashtra

FPOs Traded 3 1 1

Farmer base of traded FPOs 1,495 4,584 315

Quantity traded in MT 55 20 80

Total number of FPCs on-boarded 0 0 1

Farmer base of on-boarded FPCs 0 0 50

Commodities traded Jeera, COCUD Soybean Soybean, Chana

Districts representing traded FPCs Patan, Anjar Agar Washim

Reliance
Active RI Grant Thorton ATMA
Foundation

Commodities traded since April 2016

Barley Chana Castor COCUD Dhaniya Guar Seed

70 MT 420 MT 280 MT 2,280 MT 120 MT 80 MT

Jeera Kapas Maize Pepper RM Cake RM Seed

144 MT 24 MT 16,020 MT 16 MT 40 MT 780 MT

Soy Meal Soy Oil Soybean Turmeric Wheat

20 MT 80 MT 13,275 MT 150 MT 420 MT

Connecting Farmers to Markets 3 March 2020

 Important guidelines issued by GOI –
COVID19

Date News Link

Union Agriculture Minister launches new

https://pib.gov.in/newsite/PrintRelease.aspx?relid=2009
2-Apr-20 features of e-NAM platform - Important steps
41
in our fight against covid19
Note on Advisories to farmers during https://icar.org.in/content/state-level-advisories-farmers-
2-Apr-20
lockdown due to COVID 19 during-lockdown-due-covid-19
https://mha.gov.in/sites/default/files/3rd%20Addendum%
Ministry of Home Affairs - Lockdown
2-Apr-20 20dated%202.4.2020%20to%20Lockdown%20measure
measures
s_0.pdf
Guidelines for farmers and farming sector
during lockdown period due to COVID-19 https://icar.org.in/content/guidelines-farmers-and-
2-Apr-20 (Hindi Assamese Bengali Gujarati Kannada farming-sector-during-lockdown-period-due-covid-19-
Khasi Malayalam Manipuri Marathi Mizo hindi-assamese
Oriya Punjabi Tamil Telugu)
State level advisories to farmers during https://icar.org.in/content/state-level-advisories-farmers-
2-Apr-20
lockdown due to COVID 19 during-lockdown-due-covid-19
Govt gives benefits to farmers on crop loan https://pib.gov.in/PressReleasePage.aspx?PRID=16092
30-Mar-20
repayments due to covid19 82
https://icar.org.in/content/guidelines-applicable-farmers-
Guidelines for farmers and farming sector
28-Mar-20 and-farming-sector-during-lockdown-period-due-covid-
during lockdown period due to
19
Guidelines for harvesting going on or going
to commence shortly w.r.t curb the https://cdn.s3waas.gov.in/s3d18f655c3fce66ca401d5f38
27-Mar-20
transmission/spread of menace of Corona b48c89af/uploads/2020/03/2020032866.pdf
virus
https://dgrpg.punjab.gov.in/wp-
Advisory Regarding Permitting the Running
content/uploads/2020/04/No.-3422-51-dt.-31.03.2020-
27-Mar-20 of Harvester Combines for maintenance and
Advisory-for-Permitting-Harvester-Combines-for-
Harvesting of Wheat
Maintenance-and-Harvesting-of-Wheat.pdf
https://investharyana.in/content/pdfs/advisory%20industr
25-Mar-20 Advisory Regarding Industries
ies.pdf
https://cdn.s3waas.gov.in/s302522a2b2726fb0a03bb19f
24-Mar-20 Amendment to Lockdown
2d8d9524d/uploads/2020/03/2020032416.pdf
https://www.telangana.gov.in/PDFDocuments/COVID-
COVID-19 – The Epidemic Diseases Act,
22-Mar-20 19-The-Epidemic-Diseases-Act-1897-LOCKDOWN-
1897- LOCKDOWN – Orders - Issued
Orders-Issued-G.O.No.45.pdf

Connecting Farmers to Markets 4 March 2020

 NCDEX Footprint
NCDEX is actively engaged in training farmers, handholding the Farmer Producer Organisations (FPOs) and
connecting them with the Exchange platform in several states across the country. We have successfully on-
boarded 260 FPOs so far.

Punjab - 2

Rajasthan - 48 Uttar Pradesh - 4

Bihar - 10

Gujarat - 33

Jharkhand- 1

Madhya Pradesh - 37
Maharashtra - 113
Chhattisgarh - 2

Telangana - 4
Karnataka - 3
Andhra Pradesh - 2

Kerala -1

The number of FPOs in each State represent those FPOs who have either traded or opened a trading account
with NCDEX. In the month of March, 2020, 2 training programs were held across 2 states, around 63 farmers
participated in these training programs.

Connecting Farmers to Markets 5 March 2020

Events & Trainings

5-March-20 - A training program was conducted in 12-March-20 - An A training and interactive session
partnership with Ambuja Cement Foundation, conducting in association with NABKISAN & NAF at
Rajasthan, 23 farmers participated Kanchepuram, Tamilnadu.

7-March-20 - Awareness Session on Commodity

Derivatives Market at Directorate of Marketing &
Inspection, Faridabad.

Connecting Farmers to Markets 6 March 2020

 Important Links
• Frequently Asked Questions for FPOs
https://www.ncdex.com/Downloads/Download/pdf/FAQ_for_FPO_17092018.pdf

• Usage plan of regulatory fees foregone by SEBI

https://www.ncdex.com/Downloads/NCDEXImpact/PDF/Plan%20for%20utilization%20of%20re
gulatory%20f ees%20forgone%20by%20SEBI%202019-20.pdf

•Circular on Early Pay-in Facility for Farmer Producer Organisation (FPO)

https://www.nccl.co.in/wp-content/uploads/2018/09/FAQ-on-Early-Payin-of-commodities-for-
FPO-clients.pdf
Soybean
Chana
• NCDEX under its price dissemination policy offers you to avail the SMS facility. We
encourage you all to register yourself to avail price SMS service, details of which is available
Guarthrough
Gum this link.
https://www.ncdex.com/HelpDocuments/PDP-SMS-Registration_process.pdf
Refined Soy Oil Futures
• State-wise List of the Warehouses Registered with WDRA
https://wdra.gov.in/web/wdra/registered-warehouses

• Covid-19: Locked down?

Best time to invest your time on learning new skills!
Get enrolled for NICR Commodity Certification Courses.
https://lnkd.in/f74hgcR

Mandi.com is a weekly show

NERL - Making collateral aired on DD Kisan channel,
financing easier for farmers twice every Sunday at 8:05
in India through eNWR A.M. and 5:30 P.M.

All Episodes of Mandi.Com

are available at
https://www.ncdex.com/Downloa
ds/NCDEXImpact/PDF/Ncdex%20
https://lnkd.in/fDm5qPe Mandi.com_29022020.pdf

Connecting Farmers to Markets 7 March 2020

KhetiKeSikander
Pariwartan Organic FPC: Making future bright with future trades in Soybean

This might be a classical story of a community success
driven by the conviction of a few individuals. But the
catch is that these few individuals were not some highly
educated men having earned adorable degrees in
leadership programs, instead they were farmers with
decades of farming as their background. What makes
them a unique farmer lot is their iron determination to use
modern marketing tools.
lots on the same rate of Rs. 2950 per quintal. Even at
that time, the selling price in mandi was at Rs. 2600 per
quintal. Finally, in January 2018, when the crop was
selling at Rs. 2900 per quintal in the mandi, the FPC sold
200 quintals of the commodity at Rs. 3754 per quintal
under the May contract.

These farmers from Washim in Maharashtra are working

under the name of Pariwartan Organic Farmers
Producer Company Limited which was founded by 25
farmers in early 2016 with the help of Agriculture
Technology Management Agency (ATMA). In their quest
to search for a modern alternative market, some of the
FPC’s representatives visited Pune to participate in a
seminar where for the first time, they got to know about
futures market. It was an interesting subject, but a
complex one. All that the FPC officials could understand
was that hedging and delivery based trading were the
way out for them to beat the limitations of a traditional
market. To make it more workable, the FPC officials
requested ATMA to organize a workshop on the future
markets at Washim so that more farmer members could
participate in it and understand the concept.
During 2019-20, the FPC worked on NCDEX platform
with more confidence. It sold 2 lots of soybean in August
for November contract when the price was at Rs. 2900
per quintal. As the season progressed the rates started
to climb up during untimely and unproportionate rains.
The FPC gradually kept on selling more lots of soybean
on Futures to hedge its physical produce. “In total, we
sold 170 MT soybean on NCDEX. Although the trades
were not favourable as the excessive rains at the time of
harvesting swung the prices of soybean northward, we
could still make decent profits due to various exemptions
and reimbursements given by NCDEX, which alone
accrued up to around Rs. 5 lakh,” said Dnyaneshwar
Tukaram Dhekade, Director of Pariwartan FPC.

The fabulous results witnessed by farmer members of

Pariwartan FPC has developed a strong confidence
among farmers. And now, as Mr. Dhekade says, the FPC
has no fear or hesitation in using Futures platform as a
By that time, soybean had already been harvested and tool to augment its marketing experience and use
half of it was sold in the mandi. To sell the balance half, Futures market to hedge and as an alternate market
the FPC decided to register on National Commodity and platform.
Derivatives Exchange Limited (NCDEX).At that time
soybean was selling in the range of Rs. 2500-2700 per
quintal in the local mandi. But the rate on NCDEX was
Rs. 2950 per quintal. The FPC, then contacted a
microfinance company and succeeded in securing a loan
of Rs. 15 lakh. With this amount they started buying
soybean from farmer members by paying them Rs. 50
above the mandi price. After purchasing 300 quintals
from around 35 farmers, Pariwartan FPC sold 3 more

Connecting Farmers to Markets 8 March 2020

 Gujarat – State in Focus
Highlights*

NCDEX Commodities – Castor Seed, Cotton Seed
Oil Cake, Jeera, Coriander, 29MM Cotton, V-797
Kapas, Guar Seed & Guar Gum

NCDEX Delivery centres – Deesa, Patan, Kadi,
Gondal, Bhabhar, Rajkot, Surendernagar, Unjha

Number of FPOs registered on Exchange
platform: 34

Number of Farmers associated with 34 FPOs:
57,012

No. of FPOs participated till date: 11

Number of Farmers associated with 11 FPOs:
8,024

Total commodity deposited by FPOs: 122 MT

Total traded commodity by FPOs: 1,574 MT

Commodities traded by FPOs: Jeera, Dhaniya,
COCUD, Soybean, Castor & Guar Seed

Commodities deposited at: Deesa & Unjha

Financial assistance provided to FPOs: Ananya
Finance, FWWB, NABKISAN & Samunnati Finance

Participating Members: Karvy Comtrade and
Kunvarji

Partner Organisations for capacity building in the
state: NABARD, Reliance Foundation, GUJPRO,
Sadguru Foundation, IFFCO Kisan Sanchar Ltd.,
ShikshanAneSamajKalyan Kendra &
Technoserve
Connecting Farmers to Markets
Gujarat is a north-western Indian State, bordered by
Rajasthan to the northeast, Daman and Diu to the
south, Dadra and Nagar Haveli and Maharashtra to the
southeast, Madhya Pradesh to the east, and the
Arabian Sea and the Pakistani province of Sindh to the
west. Its capital city is Gandhinagar, while its largest
city is Ahmedabad. The State took its name from the
word ‘Gujara’, the land of Gujjars, who ruled the area
during the 700’s and 800’s. Endowed with varied
terrain and numerous sacred sites. In its urban center
of Ahmedabad is the Calico Museum of Textiles,
displaying antique and modern Indian fabrics. Spiritual
leader Mahatma Gandhi's base from 1917–1930 was
Sabarmati Ashram, where his living quarters remain on
view. The Jama Masjid (Friday Mosque), built in the
15th century, has a huge courtyard and a columned
design. Gujarat has shown good progress in
agriculture. The economy of Gujarat is largely
dependent upon agriculture. More than 50 percent of
the total available land is being used for agriculture.
The main food crops are bajra, jowar, rice and wheat.
Major commercial crops or cash crops are groundnut,
tobacco and cotton, linseed, sugarcane, etc. Other
important cash crops are isabgul (Psyllium husk),
cumin, mangoes and bananas.
NCDEX IMPACT FY 19-20

Around 5,473 farmers have traded on the
NCDEX platform through 10 FPOs with
traded volume of 405 MT in COCUD,
Castor, Jeera & Dhaniya

13 FPOs, representing 38.119 farmers
have registered with the Exchange

Anjar FPCL, Banas FPCL & Rajeshwar
FPCL have delivered 27 MT of Jeera

Girimala FPCL & Banas FPCL have
delivered 40 MT of Castor
9 March 2020
NCDEX Indices
NKrishi
3900
3700
3500
3300
3100
2900
2700
2500
01-Jun-19

01-Jul-19

01-Sep-19

01-Oct-19

01-Nov-19

01-Dec-19

01-Jan-20

01-Feb-20
01-Mar-19

01-Apr-19

01-May-19

01-Aug-19

01-Mar-20
Link for Nkrishi Index: - https://www.ncdex.com/Indices/NKrishiIntro.aspx

NKrishiis an agricultural commodities index computed by NCDEX. It aims to provide a reliable benchmark for the
traded Agri-commodities in India. It is based on simple and transparent methodology.

The components of NKrishi are selected from diverse sub sectors of the Indian Agri industry and accounts for
nearly 70% of the trading on the NCDEX platform. Commodity selection is based on both endogenous (liquidity)
and exogenous (importance in Indian/Global commodities market) criteria.

The NCDEX AGRI futures index is constituted by the top ten liquid commodities traded on the NCDEX platform. It
is a value-weightedindex; weights are assigned to each component based on national production and the traded
value. Equal importance is given to both parameters to calculate the final weights of the index components. The
index is computed real-time; using the price of the near month traded future contracts.

NKrishi is a rolling index, i.e. periodically futures contract held in the index are rolled over onto next near month
contracts as current month contracts approach expiration. NKrishi components and their weights are rebalanced
every three months based on the production values and liquidity situation prevailing in the market place.

Currently, NKrishi comprises of Castor seed, Chana, Cotton seed Oil Cake, Dhaniya, Guarseed, Jeera, RMseed,
Soybean, Turmeric& Wheat.

In the start of March’19NKrishi index value was around 3298.23. It has its minimum value2909.31in March’20.
NKrishi has shown a positive movement for some time and has made a high of 3653.25 in May’19 which is 10.76%
above its low for the shown period in the chart and it has a drop from 3616.02 in Feb’20 to 2909.31 in Mar’20
which is 19.54% drop.

Oil Complex
3000
2500
2000
1500
1-Mar-19

1-May-19

1-Jun-19

1-Jul-19

1-Aug-19

1-Sep-19

1-Oct-19

1-Nov-19

1-Dec-19

1-Feb-20

1-Mar-20
1-Apr-19

1-Jan-20

Oil and Oil Seeds Index components are Oil and Oil Seeds which are a part of the NKrishi Index. It is an equal
weighted index. This means that each constituent in the index carries an equal weight in index value calculation.
Currently, Oil and Oil Seeds index comprises of Castor Seed, Cotton Seed Oil Cake, Rape Seed Mustard Seed
and Soybean.

Connecting Farmers to Markets 10 March 2020

 Partner Ecosystem

Members

Promoting
Agencies

Financing
Agencies

Supporting
Agencies

Consulting
/ Training
Agencies

Connecting Farmers to Markets 11 March 2020

Disclaimer
--------------------------------------------------------------------------------------------------------------------------------------------------------
This Report is for general information of the recipients. The views and opinions expressed in this document may or
may not match the views of the reader. It does not constitute a personal recommendation or take into account the
particular investment objectives, financial situations, or other needs of the reader. This document is not intended to
be and must not be taken as the basis for any investment decision. It should be noted that the information
contained herein is from publicly available data or other sources believed to be reliable. We are not soliciting any
action based upon this material. Neither NCDEX, nor any person connected with it, accepts any liability arising
from the use of this document.

Connecting Farmers to Markets 12 March 2020