The Hindu Business Line : ‘Farmers not aware of online futures trading benefits’

Madurai, Oct. 2 The outcry against online trading in commodity futures as the cause for the rise in prices is misplaced. The futures market is intended to benefit the real producers and lack of awareness about its dynamics among farmers is preventing them from reaping the benefits, according to Mr V.V.Ganeshan, Assistant Vice-President, National Commodity And Derivatives Exchange Ltd.

He told Business Line that the futures market is still in the process of development. Necessary awareness about the market and the infrastructure for building the same is yet to take shape. The multi commodity exchanges have started functioning only recently. The quantum of business dealt with is small in size compared to production. To claim that the present rise in the prices of various commodities is due to the online trading in commodity futures is therefore misplaced. Market is influenced by several factors. While production has risen in respect of certain commodities, the demand also has gone up, he said.

“No one can influence the market as there is a regulator in the form of the Forward Market Commission,” he pointed out when asked about the influence of multinational companies and retail conglomerates.

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‘Farmers not aware of online futures trading benefits’