Futures market helps in price risk management

The Financial Express (July 18, 2011) | Agricultural commodities traded in the international and domestic markets have revealed notoriously volatile prices, exposing commodity-dependent developing countries to extreme economic uncertainties. An emerging economy like India, which is moving steadily towards trade liberalisation, is getting more exposed to price risks due to uncertainties in international trade. India has liberalised its imports in various agro-commodities lately and more so to tame food inflation.