A price protection scheme jointly launched by NABARD and the National Commodities and Derivatives Exchange (NCDEX) a year ago has begun to help farmers, particularly cultivating turmeric, manage price volatility by taking part in options trade in the derivatives market.
Under the scheme, NABARD subsidises premiums for put options for farmer-producer organisations (FPOs) across seven states. The crops covered under the scheme are turmeric, jeera (cumin) and dhaniya (coriander).
FPOs promoted by NABARD, Small Farmers Agribusiness Consortium, National Cooperative Development Corporation, NAFED, State Rural Livelihood Missions and cooperatives have been made the eligible organisations. It has been launched in Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Karnataka.
