Futures ban hurts farm produce firms using exchange platform to hedge risks

Companies say farmers have lost an important and certain source of income because of the suspension

Dnyaneshwar Sakharam Kohale’s farmer producer company (FPC) was getting a price that was at least Rs 100-150 per quintal more than the market rate till 2021.

Kohale found that by hedging the risk of the commodities that his FPC called Parivartan sold through exchanges, his realisation improved.

Parivartan mostly acted as an aggregator of crops such as soybeans and chana for farmers (both members and non-members) in and around Washim district of Maharashtra.

However, the market regulator’s sudden decision to suspend the futures in two of the main commodities that Parivartan hedged its risk in NCDEX dealt a blow to