Mumbai, June 27 (IANS) To ensure fair market prices and increased income for farmers, the Maharashtra government, on Friday, launched a hedging desk in Pune under the first phase of the Balasaheb Thackeray Agribusiness and Rural Transformation (SMART) Project, officials said.

This desk will initially focus on cotton, turmeric and maize crops.

Over a period of time, the initiative will be expanded to include more crops, officials added.

With the support of the National Commodity and Derivatives Exchange (NCDEX) and its research wing NCDEX Institute of Commodity Markets and Research (NICR), this initiative aims to help farmers avoid losses due to market price fluctuations.

Chief Minister Devendra Fadnavis described it as a major step forward for the development of the agriculture sector.

A formal agreement was signed between NCDEX and the SMART Project for establishing this hedging desk.

Special focus will be given to Farmer Producer Organisations (FPOs) and farmers in regions cultivating cotton, turmeric and maize, particularly in Hingoli, Washim, Sangli, Yavatmal, Akola, Nanded, Amravati, Chhatrapati Sambhajinagar, and Beed.

The project is headquartered in Pune, and operations have commenced across the state.

"Hedging and Options Trading in selected agricultural commodities are expected to deliver significant benefits for the farmers across the state. For instance, a farmer uncertain about future market prices at the time of sowing can lock in a price using options trading. This guarantees a minimum selling price, insulating them from market volatility. Ultimately, this helps farmers secure stable income, plan better financially, and feel more confident about investing in agriculture," said the government in a statement.

The hedging desk will work with FPOs and Cluster-Based Business Organisations to provide technical insights on commodity contracts and risk management strategies.

More than 3,000 farmers will be trained in hedging tools and strategies.

The desk will provide real-time market intelligence on trends, supply-demand changes, and global prices.

It will also promote setting up storage centres near farms through FPOs.

A Risk Management Cell will analyse different risk types and formulate mitigation strategies.

It will publish Annual Commodity Price Risk Assessment Reports for cotton, maize, and turmeric, offering current insights, forecasts, and policy recommendations.

Awareness and training programs on commodity derivatives will also be conducted, said the government statement.

Additionally, at least 50 FPOs involved in the production and marketing of cotton, maize, and turmeric will be registered and facilitated to trade in the futures market.

--IANS

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