A Study on Awareness Level of Farmers Towards participation in Agricultural Commodity Derivatives in Terai Region of Uttarakhand.

Abstract

Agricultural commodity derivatives serve as critical financial instruments for price risk management among farming communities. This study investigates the awareness level of farmers in the Terai region of Uttarakhand—a fertile alluvial belt spanning districts including Udham Singh Nagar, Nainital (plains), and Haridwar—towards commodity derivatives. Using a structured questionnaire administered to a stratified random sample of [530] farmers, the study employs descriptive statistics, independent T-test, and formation of farmers awareness index with Z-score, to identify awareness. Preliminary findings suggest that awareness remains critically low, with educational attainment, farm size, and access to financial services emerging as key determinants. The study recommends targeted extension programmes, digital financial literacy initiatives, and policy interventions to bridge the awareness gap and facilitate effective market participation.