An Abstract On Commodity Exchange and Derivatives trading in Agricultural marketing With respect to India Authored by: Prof.

Prasanna Venkatesh1 Naveen Hampannavar2 (naveen22h@gmail.com)

Commodity exchanges and derivatives trading plays a key role in the marketing of a number of agricultural commodities as it provides the industrial and farming communities with a transparent price discovery platform it also enables them to hedge their price risk and price volatility. The growth of Indian commodities futures trading towards an efficient, transparent and well-organized market has thrown open a window of benefits and opportunities to Indian producers and traders. . The hedging and price discovery function of the future markets promote more efficient production, storage, marketing and agro-processing operations and help in improving overall agricultural marketing performance. Agriculture contributes about 22% GDP of Indian economy. It employees around 57% of the labor force on total of 163 million hectors of land Agriculture sector is an important factor in achieving a GDP growth of 8-10%. All this indicates that India can be promoted as a major centre for trading of commodity derivatives. The purpose of this research is to find out the

Keywords: commodity exchanges, derivatives, hedging

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Professor, MATS Institute of Management and Entrepreneurship, Bangalore-78 PGDM, , MATS Institute of Management and Entrepreneurship, Bangalore-78