Mumbai, May 2: NCDEX business head Narendra Gupta was doing the rounds in Madhya Pradesh, trying to acquaint commodity traders with the new concept. It was close to midnight when he saw a group of rustic men huddled around an internet café.
Curious, he went to check out what the men were doing. To his delight, he found that they were soya farmers catching in the last bit of action at C-BOT, the Chicago Board of Trade.
They were keen to find out how the US soya prices moved during the day. As American farmers were reeling under a bad soya crop, the Indian farmers were curious to learn how their fortunes would be impacted as a surge in global demand could drive up soya prices locally.
“Farmers generally sow a crop based on today’s prices. What we say is the choice of the crop should be based on future prices and not today’s prices,” said Ravikumar.
“We are able to disseminate prices,” he said, a facility that Indian farmers never had till today. He can now plan and choose a crop based on future trends to not only hedge risks, but also increase his earning capacity.