The Intergovernmental Team (IGG) of FAO has advised the probability of introducing efficient futures marketplace for tea trade.
In its track record paper, the IGG has noticed, “With espresso as a precedent, tea futures contracts seem to be achievable. And, while not a panacea to all of the producers and exporters challenges, futures provides an efficient way of dealing with the price tag and earnings fluctuations.”
It expressed surprise that while there is a lively futures marketplace for cocoa and espresso, there is no futures marketplace for tea.
“One cause is that cocoa and espresso are seasonal with greater hazard