Futures trading boosts Indian agricultural market stability and growth.
The impact of futures trading on Indian agricultural commodity market was studied using data from 2004 to 2010. Despite concerns, futures contracts have shown to increase prices but have a stabilizing effect over time. The study found that futures markets help disseminate information, leading to better price discovery and risk management, which can benefit the underlying commodity market in India. Strengthening the market structure is recommended to achieve broader goals.