MUMBAI: Allowing options trading in commodity futures may go a long way in helping farmers hedge risks, said Reserve Bank of India in its Financial Stability Report.
“The commodity derivatives market in agri commodities has developed…However, farmers are not seen to be significantly benefiting from such platforms so far,” the central bank said. RBI said the commodity derivatives market has been largely restricted to futures contracts.
There are also liquidity problem in the absence of institutional players that could be affecting the price discovery process.
