)
To insulate farmers from fluctuations in the prices of agricultural commodities, Uttar Pradesh (UP) will promote futures trading in farm produce. UP might perhaps be the first to motivate farmers to hedge risk on the futures platform. While the state has not said what it plans to do, elsewhere state-sponsored marketing federations have attempted to aggregate farmers' positions and hedge risk on their behalf on futures exchange.
UP is one of the major producers of potato, sugarcane, wheat and mentha. Their prices have been volatile and, except sugarcane, these are traded on the futures exchange.
The state is mulling a separate exchange. The proposed platform would facilitate spot and futures trading. Many mandis in Karnataka have partnered the spot exchange, set up by the National Stock Exchange and NCDEX, a leading futures exchange for agri commodities.
Plans for a farmer-friendly marketing set-up in UP also entail establishing mandis at the tehsil level.
Currently, the state is preparing the blueprint for the roll-out and implementation of the UP Agricultural Policy 2013. Its thrust is on increasing farm income, ending landless farm labour, boosting agro-based industries, engaging private sector and providing post-harvest management and marketing support.
Participation of the private sector in food processing would be encouraged, along with value addition in commodities at the local level. The state plans to develop a value chain and backward linkage in food processing. This would involve setting up of quality-check laboratories and developing technology and implements.
Private sector involvement would be incentivised through grants in the setting up of processing and cold storages.
Centres of excellence would be established at the state agricultural universities, research council would be strengthened and facility for specialised research be made available at the regional research centres.
"The various departments are preparing their departmental action plans covering all facets of the new agricultural policy," State Agricultural Production Commissioner Alok Ranjan had told Business Standard.
Sericulture would be promoted through women self-help groups and cooperatives.
During the current 12th Plan (2012-17), UP is targeting agricultural growth of 5.1 per cent. The industrial and services growth targets have been pegged at 7.1 per cent and 10.9 per cent, respectively.
