Ban or no ban, brokerage firms and commodity exchanges are determined to spread awareness among farmers on futures trading.
The Central government's decision to ban futures trading in several commodities has not deterred the firms from going in for a big awareness drive in Punjab, India's wheat bowl.
Financial Markets International (FMI) and National Commodity & Derivatives Exchange (NCDEX) have already launched such programmes in the state.
Main purpose of the campaign is to empower farmers with information technology. Bharat Kissan Union activists have also supported these companies in their drive.
At a recent meeting in Moga, Shetkari Sanghatana leader and Member of Parliament Sharad Joshi said, "I do not mind future trading, provided it benefits farmers."
One major benefit of these companies' campaign is that they are ready to bear the hoarding cost as well.
Normally, debt-ridden farmers in the state try to sell their produce as soon as possible so as to pay back the loans they had borrowed from money lenders.
Now, with companies ready to pay the hoarding cost, farmers can always wait.
Top FMI and NCDEX officials addressed the farmers at the meeting. They talked about futures trading and its positive factors.
NCDEX officials said farmers can use the online trading platform of NCDEX to hedge the price risk by selling forward their expected production.
They emphasised that NCDEX provides an effective platform for price risk management for all segments of players farmers/producers, traders, processors, exporters/importers and end users of the commodity even as farmers can use price signals on the exchange platform to decide which crop to grow in the next season.
