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Futures trade or contract is the exchange trade standardized contract for delivering particular asset at pre-agreed price, quantity, quality, time and location. The futures trade can be followed as mechanism for protecting against the price fluctuations. In India, currently three commodity exchanges and two stock exchanges and regional commodity exchanges are regulating futures trade in agriculture commodities. Since large quantities are traded in exchanges, futures trade at individual farmers may be sometimes difficult. The small and marginal farmers can aggregate and trade their produce in exchanges through organization likes Farmers Producer Organizations.

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Futures Trade in Agriculrure.pdf