History of Commodity Derivatives Market in India

For a company producing biscuits using wheat flour, wheat is the primary ______

If the price of wheat rises, it would impact the company’s ______

Taking another example of airlines industry for which fuel cost forms a major part of operating ______

If the crude oil prices rise, Aviation Turbine Fuel price also rises, which impacts the ______ of the airline companies

To mitigate this risk, airline companies may hedge their price risk by buying futures contracts of ______ oil

To understand the relevance of commodity derivatives market to processor in a better way, an example of chana dal miller named ABC Corporation is provided in ______ 2

An excerpt from the news article providing details of how Starbucks, a world’s largest coffeehouse chain, buys coffee beans using a method called ______ is also provided in Annexure 3

Banks lend to farmers, processors and manufacturers against the security of commodities pledged/ hypothecated to the ______ System

It is obvious that when the price of the underlying commodity falls, the value of the banks’ collateral reduces ______

The incidence of rising prices would result in increase in raw material cost and lead to fall in profitability and ability to ______