dissemination of price information for growers and impact on consumer

Camera

Dissemination of price information for growers & its impact on consumer 

dissemination of price information for grower & its effect on consumer  

big paragraf

PRICE DISSEMINATION PROJECT Introduction: Price discovery and dissemination The dissemination of spot and futures prices of agricultural commodities to all agriculture sector participants, especially the farming community across the country has been identified as an important activity in the XIth Five Year Plan by the Planning Commission. The Forward Markets Commission (FMC), as the regulator of the Commodity Futures Market in India, has been given the mandate for implementing the directives of the Planning Commission for dissemination of agricultural commodity prices across the country. In response to this directive, the Forward Markets Commission formulated the Price Dissemination Scheme which is being implemented by it across the country in partnership with the Department of Agriculture and Marketing, Ministry of Agriculture, and the five National Commodity Exchanges – The Multi Commodity Exchange of India (MCX), The National Commodity Exchange of India (NCDEX) and the National Multi Commodity Exchange of India (NMCE), ACE Derivatives and Commodity Exchange Limited (ACE), Indian Commodity Exchange Limited (ICEX). The Commodity Futures Market in India comprises five National Commodity Exchanges - MCX, NCDEX, NMCE, ACE and ICEX and 18 Commodity Specific (Regional) Commodity Exchanges. These Exchanges perform the critical economic functions of price discovery and price risk management. The price signals – futures prices – emanating from the exchange platform indicate the traded value of the underlying commodity, i.e., the prices at which willing buyers and willing sellers are prepared to trade. The prices discovered on the Exchange are driven by commercial decisions on supply and demand and on the willingness to buy and sell price risk. It takes into account all public and non public ‘price impacting information’ for determining the equilibrium price in the market. Commodity futures prices, thus, serve as a mechanism for price discovery either for the present price or for determining expected future prices and therefore acts as a good “predictor” of what prices will be in future. Here, it may be clarified that the Exchange platform does not control prices in any way and that they only provide a platform for discovery of prices by traders using the exchange platform. The Price Dissemination Project endeavours to capture the prices discovered on the exchange platform on a 2 t h A X I F i v e Y e a r P l a n P r oj e c t real time basis and make it available to all stake holders in the agriculture supply chain, especially farmers to enable them to take rational and informed decisions about cropping pattern and marketing strategies and thereby increase their Farm Income. Benefits to the Agricultural Sector Agriculture producers and agribusinesses face a diverse array of marketing and production alternatives. Each time a marketing or production decision is made, farmers or agribusinesses must estimate what impact this decision will have on their income or risk management plan. None of these are more difficult to answer than, “What price can I expect? “. A producer may ask “which crop will I plant given my known input costs and expected harvest time prices?” or “should I sell now or sell forward or store my crop?”. A trader may ask, “ at what forward price shall I buy from the producer and sell forward to agribusinesses?”. Similarly, agribusinesses must determine price expectations to know what forward price to offer. The Price Dissemination Project endeavours to provide an answer to all these questions by bringing to the mandis both physical market prices reported by the AGMARKNET and the futures prices of all agricultural commodities discovered on the three Exchange platforms – MCX, NCDEX and NMCE on a real time basis. It is expected that other two Exchanges ICEX and ACE will be participating in the project and supports its cause. Benefits – both direct and indirect – that would accrue to the agriculture sector from the implementation of the price dissemination project are as follows : ! Access to the physical market prices of agricultural commodities prevailing in the designated and surrounding mandis. ! Access to futures prices of agricultural commodities discovered through a transparent price discovery process in the Commodity Exchanges. ! Integration of rural, urban and global

Economic man refers to an idealized human being who acts rationally and with complete knowledge, who seeks to maximize personal utility or satisfaction. Economic man is an assumption of many economic models, and is also known as home economicus.

what is computer

Degree oriented education system of india