The Hindu Business Line : Ticker boards at local markets

Kochi, Jan 19 The Forward Market Commission (FMC) has decided to install ticker boards for commodity prices in regional languages in various local markets in the country.

Spot and Future

These ticker boards will display both spot and future prices of commodities in a local language of a particular area on a regular basis to help farmers to fetch better pricing for their commodities, Mr B.C.Khatua, Chairman, FMC, told reporters here on Saturday. The installation of the ticker boards will run throughout the 11th Plan period, he said.

Better Info

The FMC will bear 65 per cent of the cost for installing ticker boards and the remaining by various commodity exchanges. Of the 7,500 local markets (mandis), only 2,500 have computerised system of price indicators, he said adding, that the ticker boards will create awareness and more participation among the farming community in commodities futures.

Advantages

Mr Khatua pointed out that the level of farmers in commodities participating in the US, Canada and Australia is limited to only 20 to 25 per cent. But it does not mean that they are not interested in commodities futures. They are getting good price realisation from the commodities market because of using better technology, he added.

Integrated market

The FMC Chairman also suggested setting up of an integrated market throughout the country for uniform pricing. There should be fiscal and non fiscal measures for market integration and the new Warehousing Act will help in attaining a common market. The European market is much more integrated and India is also looking for such a model, he said.

He is also of the view that there should be a common platform for different regional exchanges for price stability. These exchanges have good domain knowledge on particular regional commodities. As these exchanges are working in the producing areas, the delivery time is so short. The objective of FMC is to cash in on the positive aspects of regional exchanges, he said.

Federal Bank model

He also called upon banks and co-operative societies to adopt the Federal Bank model of giving credit to farmers in commodities market as it would enhance farmers’ participation.

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