A Study on Price Destabilization in the Indian Soybean Market

Authors

  • Sahaj Wadhwa Kirori Mal college, Delhi
  • Kanu Jain Shri Ram College of Commerce, Delhi

DOI:

https://doi.org/10.33516/maj.v49i7.96-99p

Abstract

Futures open interest has a significant effect on spot volatility, thereby, suggesting that hedgers are causing price destabilization in the cash market. The distortions in prices across mandis and undue gains by the middleman at the expense of the primary producer of these commodities have been a cause of concern for the Indian government. The government, in turn, has tried to empower the farmers by providing minimum support price and setting up procurement mechanism of their produce. However, these actions have been criticized in the international arena with agencies like WTO and UNCTAD pushing for market determined price mechanism. There is a global perception of using the derivative markets for the purpose of price discovery and risk management.

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Published

2014-07-01

How to Cite

Wadhwa, S., & Jain, K. (2014). A Study on Price Destabilization in the Indian Soybean Market. The Management Accountant Journal, 49(7), 96–99. https://doi.org/10.33516/maj.v49i7.96-99p

Issue

Volume 49, Issue 7, July 2014

Section

Commodity Market
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