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

com

Flow of presentation

Background of Project Objective of Study Research Methodology Findings Conclusion Recommendation

Background of Project

Price risk of agriculture.

It has been realized by policy maker that introduction and proliferation of futures trading will benefit Indian agriculture.

NABARD trying to pass on the benefits of futures commodity market to Indian farmers.

Objective of the Study

1.

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

2.

3.

Research Design
Nature

of Research

Exploratory and quantitative

Data

Collection
Wheat Price Source Duration

Nature of Data
Primary

Spot

Shahjahanpur Mandi (UP)

34 Months

Secondary

Futures

www.ncdex.com

34 Months

Survey Sam C ple overage

N o. Farm ers C m om ission A gent W holesaler Exchange B roker 4 4 4 4 1 1 4 4

Questionnaire Used Structured, open ended and non disguised. Sampling Technique Judgmental and Snowball Sampling

Study Area
Shahjahanpur, Bareilly, Hapur, Muzaffarnagar, Meerut

Statistical Tools
Correlation, Standard Deviation, Weighted Average, Mean, Line Graph, Bar Graph

Limitations of Study
The accuracy of the findings mostly depends on willingness of the respondents. Econometric analysis futures and spot prices are not conducted. Only five districts of Uttar Pradesh have been selected for the study

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)

Spot Price

Futures Price

34

+0.81

Quarterly r Analysis of Spot & Futures Prices

Months
Sep44 -Dec44 Jan11 44 -Apr May44 -Aug44 Sep44 -Dec44 Jan11 44 -Apr May44 -Aug44 Sep44 -Dec44 Jan11 -Apr44

Correlation (r)
-4 4 .4 11 .1 11 .1 11 .1 -4 4 .4 -4 4 .4 11 .1 -4 4 .4

Price Fluctuation Trend

44 4 4 44 . 44 4 4 44 . 4 44 4. 4 4 44 4. 4 4 44 4. 4 4 44 4. 4 44 . 4

Average Future Price wheat Rate / qnt Shahjahanpur

44 4 4.4 44 4 4.4 4.4 44 4.4 44 4.4 44 4.4 44 44 .4

Analysis of Standard Deviation Monthly S of F D utures Price

W eekly S of S Price D pot

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 % 11 % 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

Price Dissemination
O verviewof N sP persof Utta P des ew a r ra h S o. l.N 4 . 4 . 4 . 4 . 4 . 4 . 4 . 4 . 4 . 1. 1 N sP per ew a D anikJag n, L now(H ra uck indi) H indus n D nik L now(H ta a , uck indi) Rs a htriyaS hara L now (H a , uck indi) Am r Ujala, K npur(H a a indi) T E he conom T es L now ics im , uck (E lis ng h) B ines S nda , L now(E lis us s ta rd uck ng h) T Indian E pres , L now(E lis he x s uck ng h) T esof India L now (E lis im , uck ng h) H indus n T es L now(E lis ) ta im , uck ng h T P he ioneer, L now (E lis uck ng h) F uturesP rices, S re P ha rice, S hare P rice, Mutua F ls und S hare P rice, Mutua F ls und S hare P rice, Mutua F ls und S hare P rice, Mutua F ls und R a em rk S ot P p rice of Mandi, S hare P rice S ot P p rice of Mandi, S hare P rice S ot P p rice of Ma ndi, S re P ha rice S ot P p rice of Mandi, S hare P rice F uturesP rices, S re P ha rice,

Conclusion
1.

Farmers are at the mercy of adathiyas of Mandi.

2.

Futures and correlated.

spot

market

are

highly

3.

Spot and futures price showing similar fluctuation trend it means that both the markets are interrelated.

Cont
4.

Study dont find any type of speculative activity in relation to wheat price. Different sources having futures price information is not accessible by the farmer.

5.

17

Recommendations
1.

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, there is need to break this relationship by providing special loan to interested farmers. Strengthening of warehouse receipt finance so that it helps the farmers to become more responsive to market opportunities.

2.

3.

Cont
4.

Involvement of private players as an aggregator who can do the futures trading of wheat on behalf of farmers.

5.

An efficient futures market can ensure better return to farmers, reducing the need for government intervention through price support & subsidies so, it must be encouraged.

Cont.
7.

There is need to create awareness among the farmers about the benefits of futures commodity market.

8.

Easy availability of futures price movement of agri commodities for farmers, this information helps the farmers in making decision about which crop to grow.

Thank You