India’s first agri-Options unveiled for doubling farmers income

New Delhi, January 15: Finance Minister Arun Jaitley has said, development of the agriculture sector is a priority for the NDA government. He launched country's first agri-commodity options in guar seed yesterday.

“India is one of the fastest growing economies in the world and the growth is benefitting people in different sectors. But maximum population is dependent on agri-sector and unless the gains are clear and evident, the (economic) growth is not justifiable and equitable,” Jaitley said.

“Ensuring the benefits reach the agri-sector and growth is visible this is among the priority areas for us. We see in some places the problem of falling prices because of higher production. Farmers are not getting the price for their produce.”

He said many steps have been taken in the past few years to take farmers out of this situation. “There has been some impact,” he said.

The agri options initiative by the National Commodity and Derivatives Exchange Limited will give stakeholders a new set of financial instruments to hedge their price risks. Options are derivatives which give a buyer the right but not the obligation to buy or sell an underlying asset or instrument at a specific price on or before a certain date.

Agri Options initiative will protect farmers from downward price movement as well as give them an opportunity to sell their produce at higher prices in case of price increase. It will create a win-win situation for farmers, irrespective of the price movement.