Currently, farmers’ share in the overall agri-futures trading in India is negligible. There could be several factors behind this ranging from their lack of understanding how futures markets work to constraints emerging from lack of liquidity or even fulfilling regulatory requirements.

With increasing farm distress in the wake of falling farm prices in 2017, the State Government of Madhya Pradesh (GoMP) came out with an innovative scheme called Bhavantar Bhugtan Yojana (BBY), a price deficiency payment (PDP) scheme, to support farmers.