To inform and educate investors about the edible oil segment and various factors affecting the commodities within the segment, NCDEX IPFT, in association with SEA, held a webinar under the ‘Commodity ki Paathshala’ series organised by Moneycontrol.
The exclusive discussion on ‘Edible oil segment and price risk management in current times’ moderated by Manisha Gupta, Editor, Commodities& Currencies, CNBC-TV18, saw top experts Atul Chaturvedi, President, SEA; Vipin Gupta, CEO, Louis Dreyfus Company; Vijay Kumar, MD& CEO, NCDEX, and Nirav Desai, MD, Nikhil Commodity& Derivatives Pvt. Ltd, deliberate on the edible oil sector, impact of COVID-19, price disruptions, and more.
During the session, commodities stalwarts gave an overview of the global and domestic agriculture sector, adding there were high expectations from soya bean, groundnut, especially the mustard crops. They also discussed weather affecting the crops in India and countries including Russia and the United States.
As the virtual discussion progressed, experts spoke about the importance of hedging for price risk management. They explained how several factors including weather, biofuels, currency fluctuations, demand disruption, etc., affect the commodities market, due to which hedging becomes important.
Further, the panellists added the FPOs must be encouraged towards hedging as risk management was not a choice anymore but the necessity to survive the volatile world. They deliberated on using futures and options for risk management. Recently, NCDEX has initiated the programme for FPOs to familiarize them about benefits of the Put Options in fixing the sale price in advance, making it the most cost-effective hedging tool.
The webinar also saw discussion on farm bills, key learnings from 2020, government’s oilseed mission, and outlook for 2021.
Watch the insightful discussion here:This is a partnered post.