Indian farmers face price volatility due to inefficient commodity futures market.
The article evaluates how well agricultural commodity futures markets work in India. Researchers looked at different models to see where price discovery happens for various commodities. They found that the efficiency of futures markets in India varies depending on the maturity period of contracts. Some markets lead spot markets in predicting prices, while others show increased volatility with shorter maturity periods. Low participation by farmers in hedging is a major issue that needs attention in policy decisions.