7.3.Post-harvest concerns The major risk factors facing the farmers today in the post- harvest stage are:
(i)
Whether the farmer should sell his produce in the spot market or the futures market.
To give him this choice, so that he derives the best price, robust warehousing and grading/assaying facilities are needed, in proximate areas. Also, credit flows are needed, so that while futures sales are effected later, his intermediate cash flow requirements are met by bank loans.
(ii)
If selling in the spot market, which spot market should he be selling in?
Transparency of pricing and separation of sale and physical delivery elements,
would help farmers.
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