Benefits of cardomom value chain actors (Planters, auctioneers, processors cum graders and exporters) towards cardamom futures
By: Deepa R Nair.
Contributor(s): Philip Sabu (Guide).
Material type:
BookPublisher: Vellanikkara College of Co-operation Banking and Management 2017Description: 85p.Subject(s): Agribusiness ManagementDDC classification: 380.141 Online resources: Click here to access online Dissertation note: MBA Abstract: Commodity markets have occupied a very important place in the economic growth and progress of countries offering tremendous potential to market participants for both profit making and managing price risk on account of price fluctuations. With the present era witnessing increased dealings in knowledge of the agricultural produce on commodity exchanges. This chapter presents a Summary of findings based on previous analysis along with suggestions for improvement and conclusion.
Cardamom is primarily marketed through auction under the control of Spices Board. Auction system was introduced for the trading of cardamom with the objective of ensuring fare price to the cardamom planters. However, auctioning has not been able to meet fully this objective. In these context futures trading in cardamom was allowed by the central Government. Futures trading provide the farmers opportunity to hedge against price risk and signal about the price trends. With cardamom futures trade having existed for almost a decade, it is worthwhile to assess the impact trading in cardamom futures has had on different participants in the cardamom value chain. Futures trading were intended to bring symmetry information across market participants. Resultantly, it is expected that the planters would be able to fetch a better price for their output, by deciding the best time to sell their harvest and also ease the channels of credit to the planter through effective implementation of warehouse receipt financing. Also, exporters would be able to hedge against input price fluctuations, get standardized input of specified quality and quantity at the right time. Overall, the power of information with middlemen has to come down resulting in reduced supply chain margins.
With this objective in mind, this study is conducted to assess to the extent to which the trading in cardamom futures has realized the economic benefits with which it was introduced almost a decade back. The data required for the study were collected from 45 planters, 6 processors cum graders and 10 exporters from Idukki district. The major findings and conclusion of the study are presented in the following paragraphs.
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Theses
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KAU Central Library, Thrissur Theses | Reference Book | 380.141 DEE/BE (Browse shelf) | Not For Loan | 174157 |
MBA
Commodity markets have occupied a very important place in the economic growth and progress of countries offering tremendous potential to market participants for both profit making and managing price risk on account of price fluctuations. With the present era witnessing increased dealings in knowledge of the agricultural produce on commodity exchanges. This chapter presents a Summary of findings based on previous analysis along with suggestions for improvement and conclusion.
Cardamom is primarily marketed through auction under the control of Spices Board. Auction system was introduced for the trading of cardamom with the objective of ensuring fare price to the cardamom planters. However, auctioning has not been able to meet fully this objective. In these context futures trading in cardamom was allowed by the central Government. Futures trading provide the farmers opportunity to hedge against price risk and signal about the price trends. With cardamom futures trade having existed for almost a decade, it is worthwhile to assess the impact trading in cardamom futures has had on different participants in the cardamom value chain. Futures trading were intended to bring symmetry information across market participants. Resultantly, it is expected that the planters would be able to fetch a better price for their output, by deciding the best time to sell their harvest and also ease the channels of credit to the planter through effective implementation of warehouse receipt financing. Also, exporters would be able to hedge against input price fluctuations, get standardized input of specified quality and quantity at the right time. Overall, the power of information with middlemen has to come down resulting in reduced supply chain margins.
With this objective in mind, this study is conducted to assess to the extent to which the trading in cardamom futures has realized the economic benefits with which it was introduced almost a decade back. The data required for the study were collected from 45 planters, 6 processors cum graders and 10 exporters from Idukki district. The major findings and conclusion of the study are presented in the following paragraphs.
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