SEBI Expands Commodity Market Awareness Drive Across Farms and Campuses
SEBI targets farmers and institutions to strengthen commodity market understanding after an investor survey flagged awareness gaps.
The Securities and Exchange Board of India (SEBI) is actively conducting targeted awareness and education programmes on the commodity derivatives market, focusing on farmers, Farmer Producer Organisations (FPOs), and students and faculty from agricultural colleges. Chairman Tuhin Kanta Pandey announced these initiatives on December 20, 2025, during the 11th International Convention of the Commodity Participants Association of India, emphasising the need to bridge knowledge gaps in rural and agricultural sectors.
Pandey's remarks were informed by a recent SEBI investor survey, which underscored the requirement for specialised awareness efforts in commodity derivatives. The programmes also extend to exporters, importers, hedgers, and micro, small, and medium enterprises (MSMEs). Additionally, SEBI is holding outreach sessions with FPO representatives to pinpoint and address barriers they face in accessing these markets, aiming to promote greater participation and effective hedging against price volatility.
To support these efforts, the National Institute of Securities Markets—a SEBI-affiliated educational body—will run training programmes to prepare instructors capable of delivering commodity market education effectively. These steps align with SEBI's broader strategy to deepen the commodity derivatives ecosystem, including ongoing work by dedicated groups examining margins, position limits, and delivery mechanisms for agricultural commodities.
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SEBI is also pursuing institutional expansion by engaging with the Reserve Bank of India and the Insurance Regulatory and Development Authority of India to allow banks and insurance companies into the market, potentially boosting liquidity. A new working group for non-agricultural commodities will soon be formed, while efforts continue to resolve Goods and Services Tax challenges for exchange-based transactions, reflecting the regulator's commitment to fostering a robust and inclusive commodity market in India.
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