Connecting Farmers to Markets FPO update May 2018

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1 Connecting Farmers to Markets FPO update May 2018 Connecting Farmers to Markets 1 28 August 2016

2 Snapshot No. of farmers representing the FPOs 70 Farmer Producer Organisations (FPOs) traded on the NCDEX platform 62,264 Farmers represented by trading FPOs ` Apr-18 Feb-18 Dec-17 Oct-17 Aug-17 Jun-17 Apr-17 Feb-17 Dec-16 35, , , , , , , , , , , , , , , , ,469 80,916-50, , , , , States covered T R AD E D Q U AN T I T Y I N M T 16 Commodities traded 145 FPOs have opened accounts 163 FPOs in the process of opening trading accounts Connecting Farmers to Markets 1 07 June 2018

3 Summary (Mar May 2018) S.No. Particulars Till - April Mar 18-Apr 18-May Cumulative (FY-16-19) 1 FPOs On-boarded Farmers Base 2,09, ,822 2,12,442 3 FPOs Traded Farmers Base of FPOs Traded 62,264 11,642 4,471 10,789 62,264 5 Commodities Traded Quantity Traded (MT) 24, ,937 7 Traded Turnover (Rs in Lakh) ,811 8 Delivery Given (MT) 3, ,305 9 Turnover of Delivered Quantity(Rs. Lakh) Delivery Taken (MT) Farmers Base 5, ,295 Commodities traded on the Exchange platform since April 2016 Jeera 27 MT Kapas 24 MT Pepper 16 MT Wheat 200 MT Soy Meal 20 MT RM Cake 40 MT Chana 110 MT Castor 80 MT Guar Seed 60 MT Turmeric 50 MT Cocud 1,250 MT Barley 70 MT RM Seed 560 MT Soybean 9,340 MT Maize 14,010 MT Soya Refined 80 MT Connecting Farmers to Markets 2 07 June 2018

4 FPO engagement NCDEX Footprint NCDEX is actively engaged in training farmers, handholding the Farmer Producer Organisations (FPOs) and connecting them with the Exchange platform in several states across the country. We have successfully on-boarded 145 FPOs so far. Punjab - 1 Uttar Pradesh - 3 Bihar - 8 Rajasthan - 19 Gujarat - 9 Madhya Pradesh - 17 Maharashtra - 78 Chhattisgarh - 2 Telangana - 4 Karnataka - 2 Andhra Pradesh - 1 Kerala -1 The number of FPOs in each State represent those FPOs who have either traded or opened a trading account with NCDEX. Connecting Farmers to Markets 3 07 June 2018

5 State in Focus Background Highlights NCDEX Commodities Rabi (Barley, Wheat, Mustard Seed, RM Seed Oil Cake, Chana & Jeera) and Kharif (Soybean, Guar Seed & Guar Gum) NCDEX Delivery centres Jaipur, Bikaner, Kota, Jodhpur, Sriganga Nagar, Nokha, Baran, Ramganj Mandi, Alwar, Tonk Number of FPOs registered on Exchange platform: 19 Number of Farmers associated with 19 FPOs: 20,847 No. of FPOs participated till date: 5 Number of Farmers associated with 5 FPOs: 10,552 Total commodity deposited by FPOs:250 MT Total traded commodity by FPOs:630 MT Commodities traded by FPOs: Barley, Cocud, RM Seed, Soybean, Wheat Commodities deposited by FPOs at: Kota & Jaipur Financial assistance provided to FPOs: NABKISAN and Samunnati Finance Participating Members: Karvy Comtrade Ltd, Geofin Comtrade Ltd, Religare Commodities Ltd and SMC Comtrade Ltd Partner Organisations for capacity building in the state: Srijan, Reliance Foundation, SFAC, Access Development and Rajeevika Rajasthan: Rajasthan, located in the north-western part of the country, bordered with Pakistan in West and Northwest, on the North and Northeast by the states of Punjab, Haryana, and Uttar Pradesh, on the East and Southeast by the states of Uttar Pradesh and Madhya Pradesh, and on the Southwest by the state of Gujarat. The state has an area of 342,239 square kilometres. In the west, Rajasthan is relatively dry and infertile; this area includes some of the Thar Desert, also known as the Great Indian Desert. In the south-western part of the state, the land is wetter, hilly, and more fertile. The climate varies throughout Rajasthan. Average rainfall varies; the western deserts accumulate about 100 mm (about 4 in) annually, while the Southeastern part of the state receives 650 mm (26 in) annually, most of which falls from July through September during the monsoon season. Rajasthan has two principal crop seasons: Rabi sown in the months of October and November and harvested in the months of March and April. Principal crops: Barley, Wheat, Gram, and Oil Seeds (Rape and Mustard). Kharif sown in the months of June and July and harvested in the months of September and October. Principal crops: Bajra, Jowar, Maize and Ground Nuts. NCDEX Impacts The Organisations working with NCDEX to promote Farmers' participation on Futures platform, such as Access Development, ATMA, MACP, Grant Thorton and Reliance Foundation NCDEX conducted IPFT training for Farmers in Ujjain (Madhya Pradesh), Chauth ka Barwada (Rajasthan), Sirhind (Punjab) & Modasa (Gujarat) making them aware on importance of farm gate quality, price risk management and hedging Jamwa Ramgarh FPC has been promoted by Reliance Foundation which undertook reverse trade, i.e., bought Cocud through exchange platform and took delivery from NCDEX s Kadi warehouse in Gujarat Girimala FPC of Mehsana (Gujarat) and Parth Farmers FPC of Sawai Madhopur (Rajasthan) took delivery of Cocud from Kadi and Akola Aranyak FPC have taken pre-harvest positions of Maize at ~Rs 1200 for 1100 Tonnes on the Exchange and have deposited ~175 Tonnes for the month of May 2018 Connecting Farmers to Markets 4 07 June 2018

6 Events & Training FPO Training 03-May An - An IEP was conducted at Chauth ka Barwada, Rajasthan, 45 farmers participated. Concept of Future Trading, Hedging, Price Risk Management & Delivery Process was discussed. 04-May In association with Kamalnayan Jamnalal Bajaj Foundation, NABARD & CAIM a training program was conducted at Wardha, Maharashtra in which 22 farmers participated. 05-May A training program was conducted in partnership with ATMA & MACP at Nagpur, Maharashtra with 10 FPOs 07-May Farmers participated in awareness program held in association with ATMA and MACP at Aurangabad, Maharashtra 08-May A training 08-May-2018 In program in partnership with association with Grant ATMA & MACP at Jalna, Thorton a training Maharashtra. 12 FPOs program was conducted participated. at Jalgaon, Maharashtra, 13 FPOs participated 09-May Farmers participated in a training organized by NABARD at Araria, Bihar 09-May FPOs participated in a training program conducted at Dhule, Maharashtra in association with Grant Thorton 09-May A FPO Awareness Meeting was conducted with Gandhi Research Foundation at Jalgaon, Maharashtra, in which 2 FPOs participated. 15-May In association with Reliance Foundation a training program was conducted at Modasa, Gujarat in which 20 farmers participated. 15-May In association with Reliance Foundation a training program was conducted at Modasa, Gujarat in which 20 farmers participated. 17-May In association with Reliance Foundation a training program was conducted at Modasa, Gujarat in which 20 farmers participated. Connecting Farmers to Markets 5 07 June 2018

7 24-May An IEP was conducted at Ujjain, MP in which 60 Farmers participated. Concept of Future Trading, Hedging & Delivery Process was discussed. 24-May A training program was conducted in partnership with ATMA & Grant Thorton at Amravati, Maharashtra in which 12 FPOs participated. 24-May An IEP was conducted at Sirhind, Punjab in which 40 Farmers participated. Concept of Future Trading, Hedging & Delivery Mechanism was shared with the participants. 28-May farmers participated in a training program conducted In association with ATMA and Grant Thorton at Akola, Mahasrashtra 30-May Farmers representing 2 FPOs participated in IEP conducted at Modasa, Gujarat 31-May In association with NABARD a training program was conducted at Himmat Nagar, Gujarat in which 25 FPOs participated. Concept of Quality specification, Futures Trading, Hedging & Delivery Process was shared with the participants. The Mandi.com show, aired on DD Kisan channel. It is a weekly show, aired twice every Sunday, at 8:00 A.M. and 5:30 P.M. All Episodes of Mandi.Com: NCDEX FPO Media Coverage Dossier May 2018: Connecting Farmers to Markets 6 07 June 2018

8 Kheti Ke Sikander Girimala FPO: Milking Prosperity in a Dry and Arid Land Gujarat is not known for opulence in natural resources, especially when it comes for creating a friendly environment for agriculture. Aravali, a district with more proximity to the landscape of Rajasthan, is among those which face acute water shortage and have not so productive soil. So, it was an obvious choice for Reliance Foundation when in , they began to look for lending support to farmers for capacity building through village associations. The Foundation chose 18 villages in Meghraj block and formed farmers associations in each village involving farmers. The first move for village associations was to work for overall agriculture development by focussing on irrigation, soil fertility and supply of good quality seeds. The help and continuous guidance received, the farmers managed to increase the productivity by But with more production farmers began to face the problem of plenty. The foremost of them were the issues related to storage and transportation. These need led to requirement of an umbrella organization encompassing all the village associations for better coordination and solving the challenges of increased production and market. Girimala Farmer Producer Company (FPC) It was when in 2016, Reliance Foundation helped them establish Girimala FPO which was subsequently registered as a company. The FPC then started procurement and trade in castor and cocud (cotton seed oil cake). In FY17-18 season, the FPC procured 10 MT castor from 8 farmers and offered them Rs per quintal when the mandi rate for same castor was only at Rs But for such an adventurous business proposition, they must have had a place where they could sell it at even higher rate. And that place they found in agri commodity exchange National Commodity and Derivatives Exchange (NCDEX). Girimala FPC sold castor at NCDEX platform for Rs per quintal. Thus at one hand, the 8 farmers were given Rs. 250 more per quintal for their crop as compared to the prevailing price in mandi and, on the other hand the FPC also hedged their price risk and by selling the produce on Exchange platform. Similarly, the FPC traded 2 lots (1 lot= 10 MT) of cocud on NCDEX at Rs and Rs respectively for each lot and the current prevailing market price is Rs per quintal. Even after incurring transport cost the landed at FPC is at Rs per quintal which is much almost Rs300 cheaper than the prevailing market price. Along with such direct trading activities, the FPC has taken up some other projects too in its hand to help its member s farmers in increasing their household income. Collection of neem seed is one of such activities. To milk the opportunity provided by the government s initiative to produce neem coated urea, Girimala FPC has tied up with GNFC and is selling neem seeds to it at prices as high as Rs per kg. This is helping the female members of the households to be meaningfully engaged in economic activities. The FPC has also tied up with Jain Irrigation to provide infrastructure of drip irrigation at discounted prices. With so many innovative cost saving and marketing ideas, Girimala FPC plays significant role in improving the economic lives of its member farmers. This also shows how even small and marginal farmers with due collectivization can use the available market tools to their benefit. In nutshell, Girimala FPC has shown what kind of potential an organization of farmers can unleash to change the lives of its members even in an area where both water and fertile soil are not less than luxuries. Connecting Farmers to Markets 7 07 June 2018

9 NCDEX Indices Dhaanya May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Dhaanya is an agricultural commodities index computed by NCDEX. It aims to provide a reliable benchmark for the traded Agri-commodities in India. It is based on simple and transparent methodology. The components of Dhaanya are selected from diverse sub sectors of the Indian Agri industry and accounts for nearly 70% of the trading on the NCDEX platform. Commodity selection is based on both endogenous (liquidity) and exogenous (importance in Indian/Global commodities market) criteria. The NCDEX AGRI futures index would be constituted by the top ten liquid commodities traded on the NCDEX platform. It is a value weighted index, weights are assigned to each component based on national production and the traded value. Equal importance is given to both parameters to calculate the final weights of the index components. The index is computed real-time, using the price of the near month traded future contracts. Dhaanya is a rolling index, i.e. periodically futures contract held in the index are rolled over onto next near month contracts as current month contracts approach expiration. Dhaanya components and their weights are rebalanced every three months based on the production values and liquidity situation prevailing in the market place. Currently, Dhaanya comprises of Barley, Castor seed, Cottonseed Oil Cake, Dhaniya, Guarseed, Jeera, RMseed, Chana, Soybean, and Turmeric. At the beginning of Apr 17 Dhaanya index value was around Since then the value has decreased by 10.4%, reaching a minimum of Bearish trend in all commodities since April-2017 is the cause to the fall in Dhaanya Spices Spices Index components are spices which are a part of the Dhaanya Index. It is an equal weighted index. This means that each constituent in the index carries an equal weight in index value calculation. Currently, spices index comprises of Dhaniya, Jeera, and Turmeric. Connecting Farmers to Markets 8 07 June 2018

10 Partner Ecosystem Members Promoting Agencies Financing Agencies Supporting Agencies Consulting / Training Agencies Connecting Farmers to Markets 9 07 June 2018

11 Disclaimer This Report is for general information of the recipients. The views and opinions expressed in this document may or may not match the views of the reader. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or other needs of the reader. This document is not intended to be and must not be taken as the basis for any investment decision. It should be noted that the information contained herein is from publicly available data or other sources believed to be reliable. We are not soliciting any action based upon this material. Neither NCDEX, nor any person connected with it, accepts any liability arising from the use of this document. Connecting Farmers to Markets June 2018