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PANKAJ KUMAR MBA (AGRI-BUSINESS) Faculty of Management Studies Banaras Hindu University Varanasi Email-arpanpankaj@gmail.

com

Flow of presentation
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Background of Project Objective of Study Research Methodology Findings Conclusion Recommendation

 NABARD trying to pass on the benefits of futures commodity market to Indian farmers. .  It has been realized by policy maker that introduction and proliferation of futures trading will benefit Indian agriculture.Background of Project  Price risk of agriculture.

To study the futures price dissemination through different sources.Objective of the Study 1. 2. To study the relationship between the spot and future prices of wheat. . To study the existing marketing channel of wheat in Uttar Pradesh. 3.

ncdex.com 34 Months Secondary Futures 34 Months .Research Design  Nature of Research Exploratory and quantitative  Data Collection Wheat Price Source Duration Nature of Data Primary Spot Shahjahanpur Mandi (UP) www.

open ended and non disguised.Survey Sam C ple overage N o. Farm ers C m om ission A gent W holesaler Exchange B roker 4 4 4 4 11 4 4 Questionnaire Used Structured. Sampling Technique Judgmental and Snowball Sampling .

Weighted Average. Econometric analysis futures and spot prices are not conducted. Hapur. Bareilly.☺Study Area Shahjahanpur. Meerut ☺Statistical Tools Correlation. Bar Graph ☺Limitations of Study The accuracy of the findings mostly depends on willingness of the respondents. Muzaffarnagar. Line Graph. Only five districts of Uttar Pradesh have been selected for the study . Standard Deviation. Mean.

Marketing Channels of wheat F arm er C h an n el 4 Ch an n el 4 K a c hA d a t h i y a ha 4% 4 4% 4 4% 4 4% 4 4% 4 4% 4 C h an n el 4 4% 4 4% 4 4% 4 Small (< 4 Hactare) 4 Large (> 4 Hactare) 4 4% 4 4% 4 4% 4 4 % P u c c ad a t h i y a A G o v e r n m e n t A g e F coi eu sr M i l l e r C o r p o r a t e H o u s e s nl 4% 4 M arke tin g C h an n el 4% 4 Co n su m e r 4 % Channel 4 Channel 4 Channel 4 .

Correlation (r) Analysis Variable Independent Dependent Duration (Months) r Spot Price Futures Price 34 +0.81 .

0 0 0 .4 0 .4 0 .0 0 -4 4 .0 0 -4 4 .Quarterly ‘r’ Analysis of Spot & Futures Prices Months Sep44 -Dec44 Jan11 -Apr 44 May44 -Aug44 Sep44 -Dec44 Jan11 -Apr 44 May44 -Aug44 Sep44 -Dec44 Jan11 -Apr44 Correlation (r) -4 4 .0 0 0 .4 -4 4 .4 .

4 4 44 4. 44 4 4 44 . 4 44 . 4 4 44 4. 4 4 44 4. 4 Average Future Price wheat Rate / qnt Shahjahanpur .Price Fluctuation Trend 44 4 4 44 . 4 44 4.

4 44 4.4 44 4.4 44 4 4.4 Analysis of Standard Deviation Monthly S of F D utures Price W eekly S of S Price D pot .44 4 4.4 44 44 .4 44 4.4 4.

Spot Price Information Price Information Sources N ew spap er F e llo w F a r m e r N e arest M an d i T ra d e r s O th e r P r ic e I n f o r m a t io n 4 % 4 % 44 % 0 0% 4 % Other 4 % 1 1% 4% 4 4 % 4 % 4% 4 4% 4 4% 4 4% 4 Traders Nearest Mandi Fellow F armer Price Information Newspaper 4 % .

Access to futures Price Sources .

4 . S re P ha rice. 4 . L now(E lis us s ta rd uck ng h) T Indian E pres . L now (E lis uck ng h) F uturesP rices. S hare P rice. 4 . 4 . 4 . K npur(H a a indi) T E he conom T es L now ics im . Mutua F l’s und S hare P rice. l. L now(E lis he x s uck ng h) T esof India L now (E lis im . 4 . S re P ha rice. 4 . Mutua F l’s und S hare P rice. Mutua F l’s und R a em rk S ot P p rice of Mandi. Mutua F l’s und S hare P rice.Price Dissemination O verviewof N sP persof Utta P des ew a r ra h S o. S hare P rice F uturesP rices. S hare P rice S ot P p rice of Mandi. 11. uck ng h T P he ioneer. uck (E lis ng h) B ines S nda . uck indi) Rs a htriyaS hara L now (H a . L now(H ra uck indi) H indus n D nik L now(H ta a . N sP per ew a D anikJag n.N 4 . uck ng h) H indus n T es L now(E lis ) ta im . uck indi) Am r Ujala. S hare P rice S ot P p rice of Ma ndi. . S re P ha rice S ot P p rice of Mandi. 4 .

Conclusion 1. Spot and futures price showing similar fluctuation trend it means that both the markets are interrelated. Futures and correlated. . spot market are highly 3. Farmers are at the mercy of adathiyas of Mandi. 2.

Cont… 4. 17 . 5. Different sources having futures price information is not accessible by the farmer. Study don’t find any type of speculative activity in relation to wheat price.

there is need to break this relationship by providing special loan to interested farmers.Recommendations 1. 2. 3. There is need to reform the marketing channel so that farmers will get fair price of their wheat produce. . As farmers are more dependent on adathiyas from sowing to selling. Strengthening of warehouse receipt finance so that it helps the farmers to become more responsive to market opportunities.

An efficient futures market can ensure better return to farmers.Cont… 4. it must be encouraged. 5. reducing the need for government intervention through price support & subsidies so. . Involvement of private players as an aggregator who can do the futures trading of wheat on behalf of farmers.

Easy availability of futures price movement of agri commodities for farmers. 7. . 8.Cont…. this information helps the farmers in making decision about which crop to grow. There is need to create awareness among the farmers about the benefits of futures commodity market.

Thank You .