What lessons can India learn from China in order to promote its agri-futures and help its farmers in better price discovery? The government, including the regulator, should provide a favourable environment for the futures trade to flourish. Abrupt interventions, with frequent changes in stocking restrictions on private trade, have reduced the prospects of agri-futures in India. It would be prudent to focus on less sensitive commodities like oilseed complex (oilseeds, meals, and oils), feed (maize), cotton, basmati rice and spices. In China, STEs, the China National Cereals, Oils and Foodstuffs Corporation (COFCO) for example, have a major presence in the agri-futures’ markets.

Source: Indian Express December 04, 2017 18:56 UTC