The key objective of research to be undertaken, facilitated and sponsored by NICR is to improve understanding of the commodity futures market in India, in order to widen and deepen participation by all stake holders. Research will include both fundamental as well as applied and policy research and NICR policy would respect academic freedom and autonomy. While narrow and technical topics would not be discouraged, emphasis will be given to research on the important problems and issues confronting the fledgling commodity futures market and macro-economic and policy research that contributes to the improved understanding of the market and an objective assessment of government policies and interventions.
The major areas of research:
A. Research on commodity futures, that would include but not restricted to:
- Analysis of empirical data and research findings from international experience, especially from emerging economies such as China, South Africa and Malaysia, with a view to undertaking comparative studies of the development of the commodity futures market in India;
- Assessment of the efficiency and performance of the commodity futures market with reference to specific commodity groups, with a view to diagnosing the causative factors of market imperfections, both in the spot and future markets and suggesting the corrective measures needed to be taken.
- Assessment of the participation of the farmer community, especially the evaluation of alternate aggregation models and evaluation of the impact of agricultural futures on agricultural production and incomes;
- Study of the relationship between the spot and futures markets, including the impact of futures on spot price variability, as well as linkages between the domestic and international spot and futures markets;
- Study of the operating and regulatory environment, including clearing and settlement issues, margins and position limits, and their impact on the development of the futures market;
B. Macro-economic analysis and policy research, that would include;
- Research aimed at widening and deepening the commodity markets, in general, and reforming the agricultural markets, in particular.
- Analysis of demand, supply, price movements and cyclical patterns of various agricultural commodities and their impact on the output of commodities;
- Study of the efficiency of the agricultural market along the entire value chain.
- Assessment of Government policies and interventions impacting the commodity markets, especially agricultural markets.
- Study the emergence of commodities as an investment class, and its relevance both for industry for risk management and to the retail investor