Examining the Feasibility of Tea Futures in India
Open Access
- 29 June 2020
- journal article
- Published by ACCB Publishing in Space and Culture, India
- Vol. 8 (1), 154-163
- https://doi.org/10.20896/saci.v8i1.645
Abstract
The commodity derivative market in India has gained an important place in the last few decades. However, the entry of ‘tea futures’ in the derivative market is yet to come. Tea is a substitute for coffee and has a good market worldwide. India’s contribution to world production of tea is significant, but the presence of tea futures in Indian derivative market is yet to be seen whereas coffee, being a similar commodity, has a good place in the derivatives market. This study makes an attempt to examine the feasibility of tea futures in India by studying two leading conditions for tea in comparison with coffee. The study examines the market conditions by studying the export potentiality that signifies the demand and supply; and price volatility of tea price. The observations and analysis find favourable grounds for the introduction of tea futures in the commodity derivative market to extend the benefits to various groups like tea growers and manufacturers.Keywords
This publication has 8 references indexed in Scilit:
- Do futures benefit Indian coffee producers?International Journal of Economic Policy in Emerging Economies, 2012
- Testing price volume relationships for Indian commodity futuresJournal of Indian Business Research, 2011
- Impact of Futures Trading on Indian Agricultural Commodity MarketSSRN Electronic Journal, 2011
- Do the Spot Prices Influence the Pricing of Future Contracts? An Empirical Study of Price Volatility of Future Contracts of Select Agricultural Commodities Traded on NCDEX (India)SSRN Electronic Journal, 2009
- Role of Indian Commodity Derivatives Market in Hedging Price Risk: Estimation of Constant and Dynamic Hedge Ratio and Hedging EffectivenessSSRN Electronic Journal, 2009
- Indian Agri Commodity Market, Risk Management and its Sustainable Growth: An Integrated FrameworkSSRN Electronic Journal, 2006
- Bid–ask spreads in commodity futures marketsApplied Financial Economics, 2004
- A Behavioural Approach Towards Futures Contract UsageAustralian Economic Papers, 2001