A SIMPLE STRATEGY
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We are thankful to the regulator and exchange for the gift of Put Options for the benefit of farmers and FPCs. Our member farmers were happy for this new tool which gave them an opportunity to secure a good price for their Mustard crop and later focus on their crop. Our experience is that prices fall in April, but our members will not be impacted because they have bought Put Option. If prices rise, they can sell the crop in the market

As a guar processor, Guarseed options have added a much-needed layer of price protection and risk management. They allow us to hedge raw material costs more effectively and plan procurement with greater confidence. This is a welcome development for the entire guar value chain.

Guarseed options are the best contract as started by NCDEX for the price risk management. Historically Guarseed is one of the most volatile commodity due to its heavy dependence on monsoon. We can now hedge our physical market positions with Guarseed Options and thereby secure ourselves from the market volatility. Exporters of Guargum can hedge their orders through the Guarseed Options. Overall we are very thankful to NCDEX for launching the options contract in Guarseed and we expect similar launch of options contracts in spices also.

The Guar seed options market fosters a healthier and more robust value chain by offering a transparent and efficient platform for risk management. This innovative tool helps navigate market complexities and secure a more predictable future for business.
The ability to manage price uncertainty allows for more confident decision-making regarding production, inventory management, and forward contracts. This provides the stability and predictability crucial for sustainable growth within the Guar seed ecosystem.

Utilizing put options provides a crucial safety net. These options allow for locking in a minimum selling price for Guar seed. This protects against downside price risk while still allowing for potential gains from price increases. The low premiums make it a cost-effective solution for safeguarding businesses in a low-margin environment.