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Risk Management in Commodities Trade

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Risk Management through Commodity Hedging for Commodity Traders, Processors and User Industries By: Vijay Sardana http://www.arpl.in All commodity companies are worried about global  uncertainties  and their impact on commodity prices. It is high time, when commodity players and processors adopt hedging to minimize their business risks.   What is Hedging? Commodity hedging is when a company offsets risks arising out of fluctuations in raw-material prices. How does it Work? For instance, if a manufacturer of agro products expects the prices to rise in the next three months, he will buy a position in the futures market at current prices to offset the likely price increase. Similarly, if the prices are likely to fall, he will sell in the futures market at current prices against the physical goods he holds. Who can Hedge? Any manufacturer that faces risks due to volatile commodity prices can use the commodity derivat...

Misplaced Agenda - Food Security

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Indian Dairy Industry needs to fill Leadership Gap for Growth

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Sir, I still remember my meetings with you  during my Tetra Pak days regarding Jaipur Dairy UHT Milk Project.  Thank You Dr. V. Kurien for proving me seat next to you after my presentation and sharing your insights about Dairy Business with me. 

In USA, People throw 165 billion, from their earnings, every year

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In one Country, USD 165 Billion Wastage Every Year Who should educate these educated consumers ? By:  Vijay Sardana US has almost 100% literacy. What is the meaning of this education, if they are world's biggest per capita food waster, waste generator and pollution creator.  Following three questions should be answered by policy makers and all concerned citizens of the world?  Why Rich and Powerful Nations create Wastage and Pollution? Are these the parameters of civilization and richness? Should School education curriculum be evaluated by UNICEF to teach civic sense and conservation of the global resources in many countries?  What is the role of mass media in these countries? On the other side Young India and Africa sleeping Hungry....  With this malnutrition and hunger, do we need Pakistan or China to destroy India's economic progress?   Do we have the right policies to ensure food security of Ind...

US wastes 40% of its food and 40% of India goes to bed hungry

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US wastes 40% of its food and 40% of India goes to bed hungry On one hand the most powerful democracy trashes food and on the other hand the largest democracy goes to bed hungry. Both talk about human rights and dignity of life. What a tragedy of democracy? The US “trashes” 40% of its food supply according to a new report published by the Natural Resources Defence Council (NRDC). The equivalent of $165bn of uneaten food is discarded each year by Americans in a time of ever-increasing food prices and drought conditions, the NRDC said. Project scientist at the NRDC Sana Gunders said that US consumers throw away every other piece of food they buy , which is money and resources “down the drain” .  On the other hand in Indian, kinds are forced into work so they can earn to eat for themselves and for their family.  Gunders added: “With the price of food continuing to grow, and drought jeopardising farmers nationwide, now is the time to embrace al...

Why & How to Measure Success of Value Creation in Supply Chain?

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Supply Chain: Why and How to Measure Success of Value Creation in Supply Chain? By: Vijay Sardana Based on my experience with various organizations, it is becoming clear that many problems related to supply chain and poor service quality is created by companies’ own team either due to ignorance, careless and their personal convenience at the cost of companies interest or taking many strategic issues lightly by ignoring the facts on ground due to lack of interest or understanding of the subject. Many Supply chain issues don’t impact cash flow immediately but gives a cumulative impact which comes as shocking surprise to many. Analyze the supply chain in your organization Purchasing and strategic sourcing has become top-of-mind activity for the senior executives of the FMCG and other consumer oriented companies. Effective supply chain management has therefore emerged as a crucial as well as of strategic advantage for businesses. The increasing competition due to globalization...

Impact of Market Forces and Patenting of Seeds on Biodiversity

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Impact of Market Forces and Patenting of Seeds on Biodiversity Now a days, all major newspapers are carrying very active debate about patents and life-forms and life saving drugs.  The Supreme Court of India is likely to hear the case in coming days. The judgement will have far reaching impact on food security and healthcare system for common man. What about food security? Another area which will get attention is related to Patenting of agriculture inputs. Keeping in mind that any agriculture system, especially food, feed and fibre which is basis for survival of life and its sustainability will ensure the well-being of the civilisation should not become a tool in the hands of few corporate.  A monopolistic situation will not only have adverse commercial interest of large number of small and marginal farmers but will also impact social and political stability of the socio-economic system and will have serious impact on moral, legal and ethical values of any socie...