Sunday, April, 22, 2018
  • Nation
  • World
  • States
  • Cities
  • Business
  • Sport
    • IPL
    • Commonwealth Games 2018
  • Entertainment
  • Galleries
  • Videos
  • Life Style
  • Specials
  • Opinions
  • All Sections  
    States Tamil Nadu Kerala Karnataka Andhra Pradesh Telangana Odisha
    Cities Chennai DelhiBengaluru Hyderabad Kochi Thiruvananthapuram
    Nation World Business Sport Cricket Football Tennis Other Education
    Entertainment English Hindi Kannada Malayalam Tamil Telugu Review Galleries Videos
    Auto Life style Tech Health Travel Food Books Spirituality
    Opinions Editorials Ask Prabhu Columns Prabhu Chawla T J S George S Gurumurthy Ravi Shankar Shankkar Aiyar Shampa Dhar-Kamath Karamatullah K Ghori
    Today's Paper Edex Indulge Event Xpress Magazine The Sunday Standard E-paper
Home PTI NEWS

FM launches options trading in guarseed; says will benefit

By PTI  |   Published: 14th January 2018 12:14 PM  |  

Last Updated: 14th January 2018 12:31 PM  |   A+A A-   |  

0

Share Via Email

farmers New Delhi, Jan 14 (PTI) Finance Minister Arun Jaitley today launched options trading in guarseed on the commodity bourse NCDEX and asserted that the new initiative will benefit farmers and ensure better prices in the coming days.

Higher production has led to fall in prices of some agri-commodities in some places, he said, adding that options trading is one of the major steps towards taking farmers out of this situation.

NCDEX is the second exchange after MCX to launch options trading in commodities. In October 2017, MCX had launched gold options. Guarseed is the first agri-commodity options.

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.

"I hope this initiative will provide huge benefit to farmers in the coming days," Jaitley said at the launch event.

Lauding the contribution of farmers, he said they have left no stone unturned to serve the nation. They have worked hard to turn a food shortage country to a surplus now.

However, due to higher production, they are now faced with falling prices, he said.

"We see in some places the problem of falling prices because of higher production. Farmers are not getting the price for their produce. Many steps have been taken in the last few years to take farmers out of this situation. There has been some impact," he said, adding that options trading is a step in that direction.

In the beginning, options trading may look like a small step but when its awareness increases in the coming days, it is will benefit farmers, he added.

Speaking on the occasion, NCDEX MD and CEO Samir Shah said, "The option trading is a powerful tool to hedge price risks...we are confident that this will boost the development of the agri-commodity market." Options 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, he said.

NCDEX launched guarseed options as it is one of the most liquid contracts on the exchange platform. Around 15 lakh farmers are associated with this commodity.

"This is partial fulfilment of the Budget announcement.

We are expecting more. I hope the Finance Minister will announce more for this sector to carry forward the growth," NCDEX Chairman Rabi Narayan Das said.

Niti Aayog member Ramesh Chand, Nafed Managing Director Sanjeev Kumar Chadha as well as senior finance ministry and Sebi officials were present at the event.

According to NCDEX, three options contracts in guarseed that will expire in February, March and April of this year have been made available for trading.

While market regulator Sebi had allowed exchanges to launch options in September 2016, it was only on April 26, 2017 that it clarified that the options would have futures as underlying for settlement. PTI LUX ABM .

This is unedited, unformatted feed from the Press Trust of India wire.

Stay up to date on all the latest PTI NEWS news with The New Indian Express App. Download now

O
P
E
N

More from this section

India ranks 3rd among top 10 countries for LEED green bldgs

Rallis India shares fall over 7 pc post Q3 results

NEWSALERT-WEF-PM 5

Latest

Islamic State suicide bombing in Kabul: Death toll rises to 57

J-K: Militant hideout busted, arms recovered

IPL: Chennai Super Kings beat Sunrisers Hyderabad by four runs

German Social Democrats elect Andrea Nahles as first female leader

Cauvery: DMK slams Centre, says it is not bothered about TN

Nude gunman kills three at Tennessee restaurant in US

Congress may move court if impeachment notice rejected: Party leaders 

Karnataka polls: Congress releases second list

IPL2018
Videos
Image for representational purpose.
Chinese fishing nets lose popularity among Kochi fishermen
Nirbhaya's Mother Asha Devi. (File Photo | PTI)
What about those above 12 years old?: Nirbhaya victim’s mother questions POCSO act
arrow
Gallery
Blood-stained national ID papers of a woman and voters' photos are seen on the ground outside a voter registration center, after a suicide attack in Kabul, Afghanistan, Sunday, April 22, 2018. Gen. Daud Amin, the Kabul police chief, said the suicide bomber targeted civilians who had gathered to receive national identification cards. (AP)
IN PICS | Suicide bomber strike at Kabul voter registration centre kills 31
Priests pray during a ceremony in St. Peter's Basilica at the Vatican, Sunday, April 22, 2018. (AP)
Pope Francis ordains 16 priests at Vatican, tells them always 'be merciful'
arrow

Trending

FOLLOW US

Copyright - newindianexpress.com 2018

Dinamani | Kannada Prabha | Samakalika Malayalam | Malayalam Vaarika | Indulgexpress | Edex Live | Cinema Express | Event Xpress

Contact Us | About Us | Careers | Privacy Policy | Search | Terms of Use | Advertise With Us

Home | Nation | World | Cities | Business | Columns | Entertainment | Sport | Magazine | The Sunday Standard