000			01347nam a2200193Ia 4500
008			220216s9999 xx 000 0 und d
100			_aZant Wouter
245		0	_aHedging price risks of farmers by commodity boards : A simulation applied to the Indian Natural rubber market
260			_bWorld Development _c2001
300			_a691-710
520			_aThis paper investigates a hypothetical hedging scheme in a domestic commodity market under which a commodity board offers a forward contract to domestic producers and local traders and covers its commitments on an international futures exchange. It is aimed to quantify welfare gains to agents in the market and costs and benefits of the board empirically. The empirical work is based on the Indian natural rubber market and the Tokyo Commodity Exchange (TOCOM) for the period 1990-95. The hedging scheme is shown to increase welfare substantially, particularly welfare of growers. The costs of such a facility for the commodity board (basis risk) are negligible. If the forward price offered on the domestic market is a small fraction below the international futures price, the board can prevent losses at only slightly lower welfare gains.
650			_aAsia
650			_aCommodities
650			_aIndia
650			_aRisk
650			_aRubber market
856			_uRPNT)
942			_cJS
999			_c60267 _d60267