India is predominantly agriculture orients economy more than 70% of people depend on agriculture as the primary occupation it is the major employer and determines the health of economy and development and growth of an economy. this sector is affected by many problems like lack of financial facilities and other infrastructural issues, the structure of Indian agriculture has made it venerable to price challenges , farmers are not able to get better price for their produce vowing to market inefficiencies and regulatory problems and other deficiencies , Hence to strengthen the price discovery mechanism in order to get better price for the agricultural products and to foster development of the sector ,to impact the life of people depended on the agriculture in a country which has remained one of the largest producers in world most of the commodities since time immemorial there is an urgent need to safe guard interest of various stake holders by providing them adequate hedging facilities through development of commodity derivatives