Maharashtra Launches Hedging Desk for Farmers

Mumbai, Jun 27 (PTI) In a bid to ensure fair market prices and increased income for farmers, the Maharashtra government has launched a hedging desk in Pune under the first phase of the Balasaheb Thackeray Agribusiness and Rural Transformation (SMART) Project.
This desk will initially focus on cotton, turmeric, and maize crops. Over time, the initiative will be expanded to include more crops, a statement from the Chief Minister's Office (CMO) said.
With the support of the National Commodity & Derivatives Exchange (NCDEX) and its research wing NCDEX Institute Of Commodity Markets and Research (NICR), this initiative aims to help farmers avoid losses due to market price fluctuations, it said.
Chief Minister Devendra Fadnavis described it as a major step forward for the development of the agriculture sector.
Hedging, like a fence protecting a farm, safeguards farmers from the risks caused by price fluctuations in the market. Its main purpose is to reduce the risks arising from potential price drops in the future. Farmers can also benefit from options trading, which allows them to lock in favourable prices, the statement said.
Based on the recommendations by the World Bank and the project implementation framework, the hedging desk has been established to provide training and guidance to farmers and Farmer Producer Organisations (FPOs) on participating in the commodity futures market.
Agriculture contributes 12 per cent to Maharashtra's Gross State Domestic Product (GSDP), yet crop production is still heavily dependent on nature.
Farmers often lack price control over their produce, despite successful harvests. To tackle this uncertainty, the government has supported them through policies, modern agricultural practices and crop insurance schemes.

Recognising the limited resources and market knowledge of individual farmers, the government has now set up a dedicated, centralized Agricultural Hedging Desk in Pune, it said.
The hedging desk will work with FPOs and Cluster-Based Business Organisations (CBBOs) to provide technical insights on commodity contracts and risk management strategies.
Over 3,000 farmers will be trained in hedging tools and strategies.
The desk will provide real-time market intelligence on trends, supply-demand changes and global prices. It will also promote setting up storage centres near farms through FPOs.
A risk management cell will analyse different risk types and formulate mitigation strategies. It will publish annual commodity price risk assessment reports for cotton, maize and turmeric, offering current insights, forecasts and policy recommendations. Awareness and training programmes on commodity derivatives will also be conducted.
Additionally, at least 50 FPOs involved in the production and marketing of cotton, maize and turmeric will be registered and facilitated to trade in the futures market.
A formal agreement was signed on April 8, 2025, between NCDEX and the SMART Project for establishing this hedging desk. Special focus will be given to FPOs and farmers in regions cultivating cotton, turmeric and maize, particularly in Hingoli, Washim, Sangli, Yavatmal, Akola, Nanded, Amravati, Chhatrapati Sambhajinagar and Beed.
The project is headquartered in Pune, and operations have commenced across the state.
Hedging and options trading in selected agricultural commodities are expected to deliver significant benefits for Maharashtra's farmers. For instance, a farmer uncertain about future market prices at the time of sowing can lock in a price using options trading. This guarantees a minimum selling price, insulating them from market volatility, the statement said.
Ultimately, this helps farmers secure stable income, plan better financially, and feel more confident about investing in agriculture.