.......On the user side, a lot more is to be done. A policy push requiring big size actual users who could hedge price on futures market to mandatorily hedge at least a part on Indian markets. The Reserve Bank of India (RBI) may permit banks which actively lend for post-harvest funding requirements against commodity collaterals to directly hedge for price risk on commodity markets. These regulatory initiatives will enable the NCFMs to help ‘commercialisation’ of Indian agriculture, and in creating efficient linkages between agricultural marketing, lending and price risk management. Law makers, instead of doubting the usefulness of these markets, should empower the regulator to ensure that these markets to discharge their expected economic function by passing the amendment bill to the FCR Act.
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