Price Volatility and Absence of Risk Hedging Mechanisms

Problem Statement

Extreme price volatility and lack of accessible price risk management tools (e.g., futures/forwards contracts) leave farmers financially vulnerable to sudden market shifts post-harvest.

Innovation Opportunities

• Micro-Futures and Forward Contract Platforms: Simplified digital platforms to enable small and marginal farmers or FPOs to lock in prices for a portion of their expected harvest, hedging against future price drops.
• Digital Warehousing Receipt Integration: Solutions to digitise warehouse receipts and integrate them with local banks for easy access to post-harvest credit, allowing farmers to store produce and sell when prices improve.