Study On The Preference Of Coffee Traders To The Traditional Methods Of Trading Compared To Commodities Exchanges Dr. Satish Y.M.1, Devasimha L.2 1Professor, Department of Management Studies M.S. Ramaiah Institute of Technology Vidya Soudha, MSR Nagar, Mathikere, Bangalore-560054 2MBA Student Department of Management Studies M.S. Ramaiah Institute of Technology Vidya Soudha, MSR Nagar, Mathikere, Bangalore-56005 Online published on 8 August, 2018. Abstract Agricultural commodity exchanges provide a national level market ensuring level playing field for all the participants. Despite this it has been observed that the volume of trading is less than the traditional method. Hence, study was carried out to understand the reasons for the preference to traditional methods of trading for Coffee at Chikmagaluru, one of the prominent coffee producing districts of Karnataka. Response to the questionnaire from the fifty growers and traders were collected and analyzed. After analyzing the data using Z test with 5% significance it was observed that the primary reason for the non-preference of commodity exchanges is that the trading is not flexible in commodity exchanges. This is because exchange has limited trading option such as grades, lot size of coffee etc. Another hindrance is the numbers of participants trading coffee being very less. To address these issues, awareness about the commodity exchanges and its benefits to growers should be created with the help of NGOs and local individuals. Top Keywords Agricultural Produce Market Committee, coffee trading, commodity market, Futures contract. Top |