POST HARVEST PROFILE OF POTATO - Agmarknet

co-operative marketing of agricultural produce including potato and to ensure thefarmers to get ready market as well as remunerative price for their produce.7.4 Forward and Future Markets:In terms of price discovery and risk management the forward and future marketshave been identified as an important tool for price stabilization. Presently, forward andfuture market system is followed in certain agricultural commodities including potato.► The forward market supports two economic functions namely price discoveryand price risk management which enables the traders and stockiest to protect againstthe risk of adverse fluctuation of prices.. It is governed under the Forward ContractRegulation Act 1952.► The future market facilitates the trading of potato for the purchase or sale of thecommodity for future delivery where contracts are made on a future exchange on thebasis of standard quality, quantity, delivery time, locations and the price. This makes thesupply chain efficient and provide better price to the farmers.In India, the National Commodity and Derivative Exchange (NCDEX) andMulti Commodity Exchange of India Limited (MCX) started the future contract ofpotato as follows:(I) NATIONAL COMMODITY AND DERIVATIVE EXCHANGE (NCDEX) :POTATO FUTURES CONTRACT SPECIFICATIONS, NOVEMBER 2006.(Applicable to all futures contracts expiring in March 2007 and thereafter)Type of contract : Futures Contract SpecificationsName of commodity : Potatoes Fair Average QualityTicker symbol : POTFAQDELTrading system : NCDEX Trading SystemBasis : Ex-warehouse Delhi gross weight inclusive of all localtaxes and levies.Unit of trading : 15 MTDelivery unit : 15 MT packed in jute bags of 51 kgs gross weight basiswith tare weight of the bags being minimum 650 gmsQuotation/ Base value : Rs per quintalTick Size : 10 paisaPotato as per following specification shall be acceptablefor physical deliveryWidth Size (potato width size by one dimension or theother)Less than 35 mm -10% max.More than 80 mm -15% max.56