Maharashtra Launches Hedging Desk for Cotton, Turmeric, and Maize Farmers

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State-backed SMART Project aims to stabilize agricultural incomes with support from NCDEX and NICR

In a bold policy intervention aimed at insulating Maharashtra’s farmers from unpredictable market swings, the state government has launched a Hedging Desk under the SMART Project (Balasaheb Thackeray Agribusiness and Rural Transformation Project). This initiative, flagged off by Chief Minister Devendra Fadnavis, will initially serve growers of cotton, turmeric, and maize, with a gradual rollout to cover other crops.

The Hedging Desk, headquartered in Pune, offers farmers a strategic mechanism to protect themselves against losses arising from price volatility in agricultural markets. The desk operates in partnership with the National Commodity & Derivatives Exchange (NCDEX) and its research arm NICR, and is in line with recommendations from the World Bank.

What the Hedging Desk Does

The desk functions like a financial shield — helping farmers lock in prices or hedge against price drops using options trading and futures contracts. Over 3,000 farmers are expected to undergo intensive training sessions in commodity risk management, futures trading, and real-time market intelligence.

The desk is structured to serve Farmer Producer Organizations (FPOs) and Cluster-Based Business Organizations (CBBOs), empowering them with guidance on commodity contracts and encouraging the development of on-farm storage infrastructure. A Risk Management Cell will also conduct annual Commodity Price Risk Assessment Reports, initially covering cotton, turmeric, and maize.

District-Wide Focus and Long-Term Vision

According to the agreement signed on April 8, 2025, between NCDEX and the SMART Project, the initiative will focus on districts with a high concentration of the three pilot crops: Hingoli, Washim, Sangli, Yavatmal, Akola, Nanded, Amravati, Chhatrapati Sambhajinagar, and Beed.

The long-term goal is to help farmers stabilize incomes, reduce dependency on erratic market forces, and enhance financial planning. The availability of option trading tools gives farmers the ability to pre-fix minimum selling prices, reducing the anxiety around price crashes after harvest.

Support and Contact Channels

For hands-on guidance, the Hedging Desk has appointed a team of experts including crop analysts, risk consultants, and training officers. Farmers and organizations can reach out via the following contacts: