Market Volatility
A soybean farmers's cooperative in Madhya Pradesh wanted to protect their members against market volatility for their crops. They availed a price index insurance cover that pays out in case seasonal average market price falls below a trigger level.
Who Can Benefit
- Agriculture Producers
- Food & Beverage Companies
- Energy Distribution Companies
- Importers & Exporters
- Commodity Traders
Price Volatility
Sample Policy
A soybean farmers' cooperative in Madhya Pradesh took a price index cover that pays out when the seasonal average market price falls below a trigger level.
Coverage Terms
POLICYHOLDERSoybean Farmers' Cooperative
LOCATIONMadhya Pradesh
DATA SOURCESoybean Price for Indore Mandi from Agmarknet
PAYOUT BASED ONAverage of Daily Modal Price during Coverage Period
COVERAGE PERIOD15th October to 15th November
PAYOUT LEVEL₹5,000 - (Average of daily modal price during coverage period) per quintal
MAX PAYOUT LEVELSeasonal Average Market Price of ₹1,000 per quintal
MAXIMUM PAYOUT₹4,000 per quintal
Payout Sheet
For illustration purposes, a sample of one cover is presented below. Generally, covers using multiple indices are offered for comprehensive coverage.
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