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PBME Volume II ISBN: 978-81-947738-1-8
Abstract
Reaching the market for selling their agricultural commodities is of high risky venture for the farming community. A key reason for this is that they are all small farm holders who do not have their commodities' bargaining capacity in India. Apart from fighting with the risks related to climatic changes, the small farmers also face selling their Agri commodities. Suppose the farmers in India can use the service of FPOs in selling their commodities both in the spot market and the futures market. In that case, it can give at least one more option of selling their produce in a different market condition, and they can overcome the demerits of selling in traditional markets such as Mandis and APMCs.
Keywords: FPOs, Collective bargaining, Agri risk, Commodity markets
JEL Classification: Q10, Q18, Q02
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