Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


An Empirical Study On Socioeconomic Factors Affecting Producer's Participation in Commodity Markets in India

Author(s): Basha

India is an agricultural country, and agricultural goods and trade are vital to its economy. It has been decades since India's small and marginal farmers' pricing risk was reduced through better agricultural marketing. A futures market was created to stabilize prices, decrease poverty, and promote economic growth. Investors can use future derivatives to protect their cash market positions. Agricultural commodities futures market has yet to garner considerable producer participation. Overarching purpose is to explore socio-economic aspects determining producer participation in Indian commodity markets. Futures markets were created to help farmers manage their risks. However, producers in emerging markets like India are unable to actively participate in futures markets. For risk management and trading in commodity markets, this study seeks to uncover socioeconomic characteristics that influence producer decisions in India. It examines the policy framework required to promote commodities markets in India. The study used convenience sampling. 150 persons were interviewed using structured questions. A logit model revealed the primary determinants impacting commodity futures adoption in the area. This was done using the SPSS statistical software. It tries to identify institutional, socioeconomic, and farmer involvement factors that hinder or promote farmer participation in futures markets in India and Abroad

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