Informatics Publishing Limited

S. Vijayachandra Reddy ¹, G. P. Shivaswamy ¹, Chidanand Patil ², J. S. Binkadakatti ³

Affiliations
1 Department of Agricultural Economics, University of Agricultural Sciences, Dharwad karnataka, IN
2 Department of Agri-Business Management, University of Agricultural Sciences, Dharwad karnataka, IN
3 Department of Agricultural Extension, University of Agricultural Sciences, Dharwad karnataka, IN

Abstract

Trading in commodity derivatives on exchange platform is a device to attain price discovery and better price risk management, in addition serving macro-economy with improved resource allocation and generating income levels. India's first organized futures market, Bombay Cotton Trade Association Ltd., being set up 1875. Since the inception (2003) of national online trading on multi-commodity exchange platforms, the trade volumes have grown exponentially. The objectives of the present study were to study the necessities, expansion, roles and organisational problems existing in the National Exchanges. Secondary data were collected from the official web sites of Forward Market Commission (FMC) and National Level Commodity Exchanges related information for the period 2005 to 2010 and also from recognized journals and publications to facilitate effective information. The result showed that, the share of Multi-commodity Exchange (MCX), Mumbai recorded the highest turnover in terms of value of trade during 2009, followed by the National Commodity and Derivatives Exchange limited (NCDEX) and National Multi-commodity Exchange (NMCE), respectively. The risk associated with marketing of agricultural commodities can't be disregarded in physical markets. The marketing should be made more broad-based by allowing banks and others to participate in commodity futures by outline the rules efficiently as a result both producers and consumers get benefits. The Forward Market Commission (FMC) should regulatory initiatives, to prevent market manipulation and ensure market integrity, financial integrity and customer protection. However, there are several obstacles to be overcome to be decided for prolonged development of the market, possible only through comprehensive and coordinated efforts by regulatory bodies and government involved in the commodity exchange activities.

Keywords

Commodity Future Market, Obstacles, Turnover

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Amrutha. T. Joshi ¹, Siddayya ², S. Vijayachandra Reddy ³

Affiliations
1 Dept. of Agricultural Economics, UAS, Raichur-584104, Karnataka, IN
2 Centre for Water and Land Resources (CWLR), NIRD & PR, Hyderabad-500 030, IN
3 National Academy of Agricultural Research Management (NAARM), Hyderabad – 500 030, IN

Abstract

Background: Agricultural marketing plays an important role in Indian agriculture in general and farmer's economy in particular. The use of information technologies provides transparency in agri-business and making appropriate decisions in marketing of agricultural produce.

Objectives: The study was conducted in north eastern Karnataka regions with an objective to identify and assess the extent of use of electronics and communication technologies (ECTs) in marketing of agricultural commodities and also to investigate the nature and extent of economic benefits by use of ECTs to farmers and other stakeholders in marketing of agricultural commodities.

Methodology: Random sampling procedure was used during the study period and sample size consists of 120 farmers (sample respondents). Both primary and secondary data was used in the study during the period from 2011- 2014. The Primary data collected from the farmers with respect to the electronic facilities available in the market for the sale of their produce and its utilization.

Results: The findings of the study reveal that, the farmers were not directly benefitted as in the case of either the traders or other market functionaries. The illiteracy of farmers and limited access or no access makes the web portals redundant for them.

Application/Conclusion: The tangible, electronics devices used in the markets would ease the marketing process and help the farmers in realizing the quality and quantity of their produce and a remunerative price for their produce. The presence of e-balance and e-tendering process involved in selling and buying process has reduced market operation time. Thus these electronic equipments had no direct impact on the price mechanism but alleviated the buying and selling processes. Further, the use of electronic devices and communication technologies in agricultural marketing are effective tool to improve the marketing efficiency in business and transparency in transaction of agricultural produce.

Keywords

Electronic and Communication Technologies (ECTs), Agricultural Marketing, Produces, Prices and Decision Making.

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