The President of the Federation of Karnataka Chamber of Commerce and Industry (FKCCI), K. Shiva Shanmugham, said the agri-business is one of the key areas for sustainable economic growth and provides a wide range of business opportunities for entrepreneurs.
Speaking after inaugurating the Hedgers and Prospective Hedgers Awareness and Education Seminar on Agri-business and Commodities Price Risk Management, organised jointly by The Hindu Business Line , NCDEX, FKCCI, HKCCI and SBM here, Shanmugham said with the agri-industry being identified as one of the priority sectors for expansion and growth in India and considered a sunrise industry, the opportunities for sustainable growth of agri-business are tremendous.
Shanmugham said both time and spatial price uncertainty pose challenges to all stakeholders in the agriculture sector. He said there is enough evidence to suggest that price uncertainty and volatility has resulted in several companies going bankrupt while farmers had come to the brink of poverty.
Commodities trading
He said commodities trading in India, with globalisation and liberalisation, has witnessed a massive resurgence, turning itself into one a rapidly growing area in the financial sector. “Planned and sustained growth of any sector depended on prudent demand and supply management.” We need to evolve a system which not only yields adequate return to its producers, but also ensures timely supply at desired prices to the consumers .
Shanmugham said the derivatives markets stabilises the intensity of the price variations, brings a balance between demand and supply and act as a price regulator to farmers and traders and also encourages competition. He also demanded the Union Government to lift the ban on export of red gram.
Lauding the initiative taken by The Hindu Business Line for holding seminars on agri-business in different parts of the State, Shanmugham said already two seminars have been held in Bangalore and Mysore, and one each would be held in Hassan, Shimoga, Mangalore and Belgaum
The Deputy General Manager of SBM, N. V. L. Ratan, gave an insight into the role of the banks in agri-business and also various loans extended to the agriculture sector. He appealed to the farmers to repay loans in time to enable banks to recycle the repaid amount into the agriculture sector for its growth.
HKCCI President, Umakant Nigudgi, welcomed and Secretary, Basavaraj Hadgil, proposed vote of thanks.