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Forward Farmers

One of the key problems that hamper agriculture these days is price volatility.
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Primary agricultural markets have traditionally been volatile, with problems sometimes getting out of hand by ad hoc government policies. Attempts to restore price stability with guaranteed price increases have seen limited success.
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rnrnWith crashing markets spelling ruins for many farmers, the Central Bank initiated a forward contract mechanism for agricultural produce under the lquote Govi Sahanaya Scheme quote in a few selected districts in 1999.rnrnForward contracts allow farmers and traders to enter into agreements to purchase produce at pre-determined prices on a future date. rnrnForward contracts facilitate farmers to reduce fixed marketing risks and realise less unstable prices. They will also benefit traders and consumers with stable supplies and prices.
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rnrnThe bank quote s approach brought in Regional Rural Development Banks, the Sarvodaya Seed Societies together. rnrnIn fact, the bank quote s initiative w
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