I don't understand how exactly the futures / forward markets work. But presumably, they are meant to hedge the risks. So if a farmer can enter into a futures contract, that will shield him from the price movements experienced at the time of harvest, both up and down. Further, it would also help him in deciding how much to produce. If thats the case, then futures/ forwards markets are helpful to the farmer.But does an Indian farmer an active participant in these markets ? Is there any evidence (empirical or anecdotal) about benefits of these markets for the farmers ? If not, has any attempt made to spread awareness about these markets ? I have read some news recently about MCX and NCDEX trying to do something about it.Who are the participants in these markets then ?
Please note: Comments are moderated; I will delete comments that misbehave. The rules are as follows. Only civilised conversation is permitted on this blog. Criticising me is perfectly okay; uncivilised language is not. I delete any comment which is spam, has personal attacks against anyone, or uses foul language.