06_PankajKumnkar

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PANKAJ KUMAR

MBA (AGRI-BUSINESS)Faculty of Management Studies

Banaras Hindu UniversityVaranasi

[email protected]


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Background of Project

Objective of Study

Research Methodology Findings

Conclusion

Recommendation

Flow of presentationFlow of presentation


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Price risk of agriculture.

It has been realized by policy maker thatintroduction and proliferation of futures trading

will benefit Indian agriculture.

NABARD trying to pass on the benefits of

futures commodity market to Indian farmers.

Background of ProjectBackground of Project


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1. To study the existing marketing channel of

wheat in Uttar Pradesh.

2. To study the relationship between the spot

and future prices of wheat.

3. To study the futures price dissemination

through different sources.

Objective of the StudyObjective of the Study


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Nature of Research

Exploratory and quantitative

Data Collection

Research DesignResearch Design

Nature of Data Wheat Price Source Duration

PrimarySpot Shahjahanpur

Mandi(UP)

34 Months

SecondaryFutures www.ncdex.com 34 Months


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Survey Sample Coverage

No.

Farmers 44

Commission Agent 44

Wholesaler 11

Exchange Broker 44

Questionnaire Used

Structured, open ended and non disguised.

Sampling Technique

Judgmental and Snowball Sampling


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Study Area

Shahjahanpur, Bareilly, Hapur, Muzaffarnagar, Meerut

Statistical Tools

Correlation, Standard Deviation, Weighted Average,

Mean, Line Graph, Bar Graph

Limitations of StudyThe accuracy of the findings mostly depends on willingnessof the respondents.

Econometric analysis futures and spot prices are notconducted.

Only five districts of Uttar Pradesh have been selected forthe study


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Variable Duration(Months)

r

Independent Dependent

Spot Price Futures Price 34 +0.81

Correlation (r) AnalysisCorrelation (r) Analysis


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Months Correlation (r)

Sep44-Dec44 - .44

Jan11 -Apr44 .0 0 0

May44-Aug44 .0 0 0

Sep44-Dec44 .0 0 0

Jan11 -Apr44 - .44

May44-Aug44 - .44

Sep44-Dec44 .0 0 0

Jan11 -Apr44 - .44

Quarterly r Analysis of Spot &Quarterly r Analysis of Spot &

Futures PricesFutures Prices


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.444

.44444

.44444

.44444

.44444

.444444

.444444

Average Future Price w

Rate / qnt Shahjaha

Price Fluctuation TrendPrice Fluctuation Trend


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.444

.4444

.4444

.4444

.4444

.44444

.44444

Monthly SD of Futures Price

Weekly SD of Spot Price

Analysis of StandardAnalysis of Standard

DeviationDeviation


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Spot Price InformationSpot Price Information

S o u r c e s

P r i c

I n f o r m a

N e w s p a p e r %4

F e l l o w F a r m e %4

N e a r e s t M a n d 44%

T r a d e r s %0 0

O t h e r %4 %4 %44 %44 %44 %44

Newspaper

Fellow Farmer

Nearest Mandi

Traders

Other

%4

%4

%44

%1 1

%4

Price Information

Price Information


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Access to futures PriceAccess to futures Price

SourcesSources


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Overview of News Papers of Uttar Pradesh

Sl.No. News Paper Remark

.4 Danik Jagran, Lucknow (Hindi) Spot Price of Mandi, Share Price

.4 Hindustan Danik, Lucknow (Hindi) Spot Price of Mandi, Share Price

.4 Rashtriya Sahara, Lucknow (Hindi) Spot Price of Mandi, Share Price

.4 Amar Ujala, Kanpur(Hindi) Spot Price of Mandi, Share Price

.4 The Economics Times, Lucknow

(English)

Futures Prices,Share Price,

.4 Business Standard, Lucknow (English) Futures Prices,Share Price,

.4 The Indian Express, Lucknow (English) Share Price, Mutuals Fund

.4 Times of India, Lucknow (English) Share Price, Mutuals Fund

.4 Hindustan Times, Lucknow (English) Share Price, Mutuals Fund

.1 1 The Pioneer, Lucknow (English) Share Price, Mutuals Fund

Price DisseminationPrice Dissemination


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ConclusionConclusion1. Farmers are at the mercy of adathiyas of

Mandi.

2. Futures and spot market are highlycorrelated.

3. Spot and futures price showing similarfluctuation trend it means that both themarkets are interrelated.


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ContCont

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4. Study dont find any type of speculativeactivity in relation to wheat price.

5. Different sources having futures priceinformation is not accessible by thefarmer.


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1. There is need to reform the marketing channelso that farmers will get fair price of theirwheat produce.

2. As farmers are more dependent on adathiyasfrom sowing to selling, there is need to breakthis relationship by providing special loan tointerested farmers.

3. Strengthening of warehouse receipt financeso that it helps the farmers to become moreresponsive to market opportunities.

RecommendationsRecommendations


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4. Involvement of private players as an

aggregator who can do the futures tradingof wheat on behalf of farmers.

5. An efficient futures market can ensurebetter return to farmers, reducing theneed for government intervention throughprice support & subsidies so, it must be

encouraged.

ContCont


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7. There is need to create awareness among thefarmers about the benefits of futurescommodity market.

8. Easy availability of futures price movement ofagri commodities for farmers, this informationhelps the farmers in making decision aboutwhich crop to grow.

Cont.Cont.


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Thank YouThank You

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