cover image: A Note on Futures Trading and Jute Futures Market

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A Note on Futures Trading and Jute Futures Market

1940

"The last but by no means the least important of the functions of the middlemen to become the work of specialist is the assumption of risk due to price fluctuations.” Just as banks and transport agencies have developed to relieve the middleman of his worries in regard to the suppl7 of credit and facilities for transport of goods so the futures markets have come into existence to take over the ri [...] It is the stipulation for future delivery that makes such transactions possible and as both the buying and selling interests are evenly balanced in such a market the resultant price is governed not by the relation of the seasonal supply to the effective demand of the few months following the harvesting of the crop but by the relation in which the supply would stand in the calculation of the opera [...] The various trades which utilise the system of hedging may be illutrated as follows from the cultivation of cotton in the Southern States of the United States of America to the export of the manufactured article from Eu rope. Since the farmer usually grows quite a small amount of cotton on his land in many cases he cannot avail himself of the opportunity afforded by the futures market of hed [...] The Committee proposed that all sections of the trade should have an effective voice in the management of the futures market and following the example of the Iombay Cotton Futures Market they recommended that the management of the m arket and the framing of"13 bye-laws should be entrusted to a Governing Body consisting of the represetatives of balers shippers loose jute dealers mills and b [...] The Government of Bengal then after a careful consideration of all the points raised in the memorials refused to take any action for the suppression of the East Tndia Jute Association Limited and advised the trade to hold a coference of the various sections with a view to evolving a suitable scheme for the working of the futures market.
government politics public policy
Pages
15
Published in
India
SARF Document ID
sarf.146072
Segment Pages Author Actions
A Note on Futures Trading and Jute Futures Market
1-15 N.R. Sarker view