Futures trading ban fails to cool retail prices in India, say reports

Quick Summary:

The lack of domestic hedging options would force domestic hedgers to access international futures markets, exposing them to basis risk.

The studies also found that without futures contracts, farmer-producer organisations (FPOs) were not able to hedge against price fluctuations, making them vulnerable to market volatility.

Basis risk is the residual risk faced by hedgers, which is the difference between spot and futures prices for a commodity.

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Article Details

Category: BusinessFinance

Markets: India

Topics: Agri futures trading Retail prices SEBI Agri economy

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-12 @ 23:28:46 (17 hours ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 467 words

Reading Time: 3 minutes read

Sentences: 20 lines

Sentence Length: 24 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Business Standard

News ID: 23557958

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Official Website: business-standard.com

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Coverage Areas: India

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