From Plate to Plough: Agri-futures, like China | The Indian Express

From Plate to Plough: Agri-futures, like China | The Indian Express

From Plate to Plough: Agri-futures, like China

A robust futures market helps China’s farmers get better prices for their produce. India must begin by allowing prospecting only for non-sensitive commodities.

Written by Ashok Gulati , Tirtha Chatterjee | Updated: December 5, 2017 6:03 am

(Express Photo by: Gurmeet Singh)

In November, prices of most major kharif crops crashed below their respective minimum support prices (MSPs), triggering farm distress. One of the many reasons behind this situation is that planting decisions of our farmers are based on last year’s prices, rather than the prices expected at the time of harvest. Signals indicating future prices are largely absent as agri-futures have been decimated by excessive controls and regulation. It is time to think afresh and resurrect agri-futures in India.