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Price Dissemination Initiative by Forward markets Commission
The dissemination of futures prices of agricultural commodities has been identified as an important activity for the XIth Five Year Plan by the Planning Commission. The Forward Markets Commission, the regulator for commodity futures trading has been given the responsibility for implementing the Price Dissemination Project with the objective of disseminating prices ( both spot and futures) of agricultural commodities among all stakeholders of the agricultural sector. Dissemination of futures prices will serve the following objectives:
The futures prices quoted at the Exchanges can provide useful inputs to the farmers for decision making during pre sowing and post harvest period.
Information of prices can improve the bargaining capacity of the farmers and reduce the monopoly of the middlemen at the Agricultural Produce Marketing Committees (APMCS) s and rural Mandis. This would enable farmers to get best possible prices for their produce.
Dissemination of the Futures Prices would go a long way in improving farmers’ awareness and the existence of the futures markets.
2. The Forward Markets is considering the following modes of dissemination:
Placement of price ticker boards
Placement of price ticker boards in around 950 mandis/APMCs, through AGMARKNET all of which are already networked under the AGMARKNET project.
Placement of around 300 price ticker boards at rural branches of Post offices. On a pilot basis, price ticker boards has been installed in 2 post offices in Delhi- Ashok Vihar and Omkar Nagar.
Placement of ticker boards at KVKs, BDOs Tehsil Offices, and rural branches of Banks.
Price dissemination activity by National Commodity Exchanges:
The National exchanges have independently taken up the task of placing price ticker boards displaying futures prices discovered in their exchanges at prominent centres. The three National Exchanges have independently and in collaboration with each other, already placed price ticker boards in 514 locations spread over 18 states. Dissemination of future prices is also being done through Doordrshan as well as other business TV channels. The Exchanges are already providing price details to the National Channel of Doordarshan and price tickers are at present being displayed in the National News telecast.
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