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Indian Journal of Social Research Vol.56 (2) (Mar - Apr, 2015) (191-196)

CONSTRAINTS PERCEIVED BY FARMERS, TRADERS AND NON-TRADERS AT BIKANER COMMODITY EXCHANGE LIMITED, BIKANER (RAJASTHAN)

Banshi Lal Verma* and R C Kumawat**
*Ph.D. Scholar and **Professor
Department of Agricultural Economics
S.K.N. College of Agriculture, Jobner - 303329

Abstract

In this investigation an attempt has been made to study the constraints perceived by farmers, traders and non-traders at Bikaner commodity exchange limited, Bikaner Rajasthan. For this purpose primary data were collected for the year 2007-2008. The required information was collected through personally interviewing the authorized brokers, trading members and farmers associated to the exchange. These data were then analyzed by simple percentage method to obtained objective oriented results. The major constraints faced by the traders were the lack of technical expertise in the exchange (84.62%), ignorance and unpredictable attitudes of farmers, price volatility, difficulties in predicting futures market trend, and surveillance problem. Absence of direct participation of farmers (89.21%), unawareness about the working pattern and procedure adopted by the exchange (81.58%), policy and institutional constraints, lack of integration and grouping at the farmers level, and poor accessibility of the commodity exchange at the grass root level were the major constraints faced by the farmers at the exchange. Lack of technical knowledge (81.58%), difficulties in predicting futures market trend and problems in regard to clearing, delivery and settlement (55.26%) were the major constraints faced by the non-members clients at that exchange.

Key words: Constraints, traders, commodity exchange, authorized brokers.

Introduction

India has a long history of commodity futures trading, dating back to more than 125 years. Conceptually, “Futures trading is an agreement between a buyer and a seller obligating the seller to deliver a specified asset of specified quality and quantity to the buyer on a specified date at a specified place and the buyer in turn is obligated to pay to the seller a prenegotiated price in exchange of the delivery”. Futures trading is a device for protection against the price fluctuations which normally arise during the course of marketing of commodities.

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