NABARD and NCDEX's Price Protection Scheme Provides Relief to Spice Producers

16-Feb-2026 08:19 PM

Mumbai. A year ago, NABARD and the National Commodities and Derivatives Exchange (NCDEX) jointly launched a Price Protection Scheme, which has begun to help spice producers, especially turmeric farmers, manage market price fluctuations. Producers participating in options trading in the derivatives market have received significant relief from this scheme.

It is noteworthy that under this scheme, NABARD provides premium subsidies for put options to Farmer Producer Organizations (FPOs) in the country and in the states. Turmeric, cumin, and coriander are included under this scheme.

FPOs promoted by NABARD, the Small Farmers Agribusiness Consortium, the National Cooperative Development Corporation, NAFED, State Rural Livelihood Missions, and cooperative federations/societies are considered eligible to benefit from this scheme. The scheme has been launched in seven major spice-producing states: Andhra Pradesh, Telangana, Karnataka, Maharashtra, Gujarat, Rajasthan, and Madhya Pradesh. It is helping farmers hedge price risk.

During the first phase, the scheme covered 80 FPOs and 1.34 lakh farmers, with 6,544 tonnes of produce hedged. During the first nine months of the current financial year, Rashtronnati Farmer Producer Company, located in Washim district, Maharashtra, achieved a turnover of ₹1 crore. The business activities of other FPOs are also proving to be promising.