CM Fadnavis launches crop price risk management scheme for farmers

In a significant move to ensure fair market prices and increase farmersrsquo incomes the Maharashtra government has launched a dedicated hedging desk in PuneThe initiative part of the first phase of the Balasaheb Thackeray Agribusiness and Rural Transformation SMART Project initially focuses on cotton turmeric and maizeThe Chief Ministerrsquos Office CMO stated that the programme will eventually expand to include a wider range of cropsSupported by the National Commodity amp Derivatives Exchange NCDEX and its research arm NCDEX Institute of Commodity Markets and Research NICR this initiative aims to protect farmers from financial losses caused by fluctuating market pricesMeanwhile Chief Minister Devendra Fadnavis described it as a major step forward for agricultural development Hedging explained as a lsquofence protecting a farmrsquo is designed to minimise risks from potential future price drops while options trading allows farmers to secure favourable pricesEstablished based on recommendations from the World Bank and the projectrsquos implementation framework the hedging desk will provide crucial training and guidance to individual farmers and Farmer Producer Organisations FPOs on participating effectively in the commodity futures marketMoreover agriculture contributes 12 per cent to Maharashtrarsquos Gross State Domestic Product GSDP though crop production remains highly dependent on natural factors As several farmers often lack control over their produce prices despite successful harvestsmdashan issue the government has traditionally addressed through policies modern agricultural practices and crop insurance schemesRecognising the limited resources and market knowledge of individual farmers the government has set up this centralised Agricultural Hedging Desk in Pune The desk will collaborate with FPOs and ClusterBased Business Organisations CBBOs to offer technical insights into commodity contracts and risk management strategies reported PTIOver 3000 farmers are expected to receive training in hedging tools and strategies Additionally the desk will provide realtime market intelligence including trends supplydemand changes and global prices and promote the establishment of storage centres near farms via FPOsMeanwhile a dedicated risk management cell will analyse various risk types and formulate mitigation strategies publishing annual commodity price risk assessment reports for cotton maize and turmeric with current insights forecasts and policy recommendations Awareness and training programmes on commodity derivatives will also be conducted At least 50 FPOs involved in producing and marketing these three key crops will be registered and facilitated to trade in the futures marketA formal agreement for this hedging desk was signed between NCDEX and the SMART Project on April 8 2025 Special focus will be given to FPOs and farmers in major cotton turmeric and maize cultivating regions including Hingoli Washim Sangli Yavatmal Akola Nanded Amravati Chhatrapati Sambhaji Nagar and BeedHeadquartered in Pune the projectrsquos operations have already commenced across the stateHedging and options trading are anticipated to bring substantial benefits to Maharashtrarsquos farmers for example a farmer uncertain about future prices at sowing time can use options trading to lock in a minimum selling price safeguarding them from market volatilityUltimately this initiative aims to help farmers secure stable incomes plan their finances more effectively and feel more confident about investing in agricultureWith inputs from PTI