Hedging Desks Launched for Cotton, Turmeric, and Maize Under Smart Project – CM Devendra Fadnavis

Ensuring Market Prices to Maximize Farmers’ Profits

Mumbai : To boost farmers’ incomes and ensure they get fair market prices for their produce, the first phase of the Smart Agricultural and Rural Transformation Project—named after Balasaheb Thackeray—has launched “hedging desks” in Pune for cotton, turmeric, and maize. The initiative will be expanded to additional crops in future phases. These hedging desks enable farmers to protect themselves from price volatility in future markets. The project is a joint effort of the National Commodity & Derivatives Exchange (NCDEX), regulated by SEBI, and the National Institute of Commodity Research (NICR). Chief Minister Devendra Fadnavis called the initiative a significant step forward for agricultural development.

What Is a Hedging Desk?

Hedging acts like a protective fence for farmers’ incomes—similar to doors and gates guarding a home from external threats. Its main purpose is to reduce the risk of falling prices by using futures market instruments and options trading to lock in future prices. Guided by the World Bank and project implementation plans, the hedging desks aim to help farmers and Farmer Producer Organizations (FPOs) participate in future markets. They provide training, guidance, and expert advice on price risk management.

Why Farmers Need Hedge Protection

Agriculture contributes 12% of Maharashtra’s economy, but crop output still relies heavily on natural factors. While crop yields might be predictable, market prices are not, leaving farmers unsure of returns. To address this uncertainty, the government currently offers policies, improved farming techniques, and crop insurance. The new hedging desks bring a market-focused safety net, aiming to stabilize farmer incomes.

How the Hedging Desks Operate

These desks will serve FPOs and Cluster-Based Business Organizations (CBBOs) by providing expert advice on commodity contracts and risk management. Over 3,000 farmers will be trained on hedging strategies, market trends, supply-demand shifts, and real-time price intelligence. FPOs will also receive incentives to establish storage centers near farms.

Through the “Risk Management Cell,” risks will be reviewed and policy solutions formulated. Annual Commodity Price Risk Assessment Reports will be prepared for maize, cotton, and turmeric, detailing current status, forecasts, and policy recommendations. Additionally, at least 50 FPOs will be registered for futures trading in these crops.

NCDEX & Smart Project Partnership

On April 8, 2025, NCDEX and the Smart Project signed a Memorandum of Understanding to establish hedging desks exclusively for Pune-based FPOs and farmers casting cotton, turmeric, and maize, with priority regions including Hingoli, Washim, Sangli, Yavatmal, Akola, Nanded, Amravati, Chhatrapati Sambhajinagar, and Beed.

Positive Impact from Hedging and Options Trading

Through hedging and options trading, farmers can mitigate losses due to price falls. For instance, before planting, if a farmer fears price decline, an option contract can lock in a minimum price. Despite market anomalies, hedging ensures a guaranteed return, fostering income stability. This encourages farmers to plan better, invest in their farms, and achieve financial security.

Who to Contact for More Information

FPOs, CBBOs, and individual farmers can reach out to the Smart Project implementation office in Pune:

• NameRolePhoneBabasaheb JejurkarQuality Expert9405002800Dr. Bramhanand DeshmukhCrop Analyst9561421509Neeraj ShuklaNCDEX–NICR Hedging Desk Consultant9323614626Gautam AthawaleRisk Analyst9420419470Nidhi Mishra(NCDEX Contact)9029391806

Email: hedgingdesk.smart@gmail.com

Details on training and the hedging desk are also available via NCDEX’s website under “About Us”.

The launch of the hedging desks marks a major milestone—empowering farmers to manage price risk and achieve stable incomes, transforming agriculture into a sustainable and profitable business.