Health Facilities Purpose The Terminology

Question: You have to think about your clinical experience to date and recognize an issue important to research, for example, wound consideration, nursing care methods and so forth. You are then required to build up a quality improvement proposition on this subject of intrigue. The substance of the proposition will include: the foundation and centrality of the venture; explanation of the issue; criticalness or significance of the issue; the reason of the task/or clinical inquiry; suppositions and definitions; survey of related writing; diagram of the undertaking system; utilization of fitting improvement approach and so on. Answer: Presentation Foundation Every day in wellbeing offices, the duty of thinking about the patients is moved from one or a group of care suppliers to another. This activity emerges in an occupied and interruptive setting which commonly portrays a medical clinic. This procedure is known as handover, handoff or end-of-move report. It is basically done through correspondence and hence, for this ventures reason, the phrasing handoff will be utilized. Data, obligation, and authority are the three crucial things that are moved for the continuation of care or the board as arranged (Farhan, Brown, Vincent, Woloshynowych, 2011). Different medical clinic areas, for example, the crisis division have the issue of congestion and overburdening, and they generally handle basic cases that require most extreme consideration. It implies that the handoff procedure must be careful to maintain a strategic distance from any far-fetched circumstances, for example, delays in treatment, inadequate mediations, and patients leaving without being taken care of, and more terrible off, pointless passings. Every now and again, handoffs have been directed in different ways, and they rely upon the jobs of the parental figure, customs, conditions and pecking orders (Fernando, Adshead, Dev, Fernando, 2013). The use of a normalized handoff rule has been recognized as the most effective method of guaranteeing the patient is securely overseen. A data arrangement of overseeing clinical subtleties known as Electronic Medical Record (EMR) is devoted to the control, assortment, profiting and capacity of patient data that can help in the conveyance of care (Han, 2014). A portion of these frameworks are programmed and handle data, for example, specialists remedies, nursing care notes, results from the research facility and others. Since there comes up short on an appropriate procedure of normalizing handoffs, the capability of EMR isn't augmented. While handoffs happen at all clinic offices, this venture centers around those that happen between the crisis office and the nursing staff of the inpatient unit. Criticalness The handoff procedure was set for certain modifications as an objective under the National Patient Safety program. The patients data move is a basic issue in that any interference of correspondence among human services suppliers has added to the occasions alluded to as Sentinel. The Joint Commission (TJC) characterizes a sentinel occasion as a sudden happening that may cause genuine mental or physical impedances, and even demise to at least one patients, additionally, it isn't credited to the patients ailment as a characteristic course. For example, injury because of the consistent supplanting of a given medicine with another (The National Patient Safety Foundation and the AAPM, 2013). Identifying with sentinel occasions, it has been built up that between 64%-74% of the events are identified with a breakdown in correspondence (Weyand, Kang, Junck, Heiner, 2014). Ineffectively conveyed handoffs have been recognized as the reason for poor patient fulfillment, postponed remedy and treatment, and expanded confirmation of patients with minor issues. The most revealed issues incorporate forgetting about basic data and its error. Plans have been built up to expand the utilization of EMR for normalization of handoffs. It is far-fetched that the greater part of the data is shared verbally than it is recorded in EMR. Additionally, a few factors, for example, work culture, convention, and setting entangle the use of EMR in human services offices (The National Patient Safety Foundation and the AAPM, 2013). Nursing suggestions. As much as an organized procedure of correspondence has been set up to manage nursing practice, there is no proof recommending best practice in handoffs. Specialists have not completed a quality report about the subject. Examples of correspondence among specialists and attendants had the most noteworthy interference rates at 30%. This finding on medical caretakers and doctors correspondence likewise affirms that insights regarding the patients substituting condition and needs are insufficient and in this manner makes a progression of blunders in reasonable cases. The expectation of handoffs is guaranteeing that there is progression of care, distinguish and convey a patient reaction to intercessions and address any adjustments in the state of the patient. Lingard (2014) underscores that the focal point of value results in cooperation is correspondence (Goldszmidt, Dornan, Lingard, 2014). Care of patients is a mind boggling movement where diverse wellbeing laborers work together in an offer to reestablish full usefulness. A social insurance condition has a ton of blended issues extending from interferences, bedlam, trouble and others. It is basic to fathom the uniqueness of the setting of handoffs process during affirmation from the crisis division. It was built up that vulnerabilities in data innovation, correspondence, the earth, designation of obligations and stream of patients impact the crisis office handoffs. This venture is intended to give a chance to medical caretakers from all units to comprehend handoff as a nursing technique and connect with them in figuring the most ideal path workable for quality improvement. A chance to improve care is basic to propelling the nursing calling (Duncan, Montalvo, Dunton, 2011). Issue Statement. The subtleties introduced by a medical caretaker on the job to another or other consideration suppliers during a difference in shifts is vital for the administration of the patient. A noteworthy number of patients may pass on account of insufficient arrangement of handoff data. Achievement in the general result of treatment and care in crisis office rotates on the idea of normalized handoffs. Valuable time might be squandered on the ignorant points of interest, for example, accessibility of research center outcomes. For example, passing up the primary issues like imparting the reason for the patients issue as dull injury may prompt a ton of time wastage rather than a quick mediation through medical procedure and serious consideration treatment. An examination completed on 264 doctors of the crisis division distinguished that 31% of the respondents detailed in any event one unfavorable occasion credited to handoffs. A comparative report noticed that 74% of the handoffs are directed in a typical zone inside the division. 90% of them announced that there is no arrangement with respect to the procedure. half demonstrated that the doctors get quiet data verbally from the medical caretakers and their partners. They state it gets uncontrolled when they acquaint with one another (Flanigan, Heilman, Johnson, Yarris, 2015). An audit of the writing demonstrates that there is a huge mortality and horribleness caused when wellbeing laborers defer starting best practice mediations on account of feeble between move reports. Concerning this task, a considerable measure of research has been attempted abroad. There is the restricted writing on examine about this subject especially in the field of nursing in Australia (Bish, Kenny, Nay, 2013) . Criticalness Of The Problem The proposition is basic for medical caretakers and other wellbeing laborers since it would give rules on a portion of the noteworthy methods for improving handoffs and at last the results of wellbeing mediations. They would pick up information and ability in wellbeing advancement and brisk reaction in a crisis office as the cures address the crisis reaction which coordinates between move moves. Moreover, patients and families would be edified on their privileges in a crisis office with the goal that quality is constantly anticipated. Proficient improvement would likewise be cultivated particularly the callings of nursing and medication as the venture fuses nearby and universal strategies on human services. Reason Of The Project The purposeful numbness of utilizing handoff rules by medical attendants and other medicinal services suppliers isn't right and must be corrective. Besides, the greater part of the medical clinics don't lay the best techniques in helping patients and urging their staff to maintain best practice in all offices, explicitly the crisis segment. Likewise, there are insufficient nursing calling put together research concentrates with respect to the subject consequently advancing the uncontrolled issues in the handoff procedure. The most ideal method of improving adherence to the rules is the utilization of EMR and activating awareness in each social insurance expert to upgrade moral standards, for example, do no mischief and regard for mankind (Halstead, 2012). Suspicions And Definition Of Terms Suspicions. The suspicions distinguished about the importance of this proposition incorporate; All the crisis divisions have an unmistakable strategy on the handoff procedure. It is on the grounds that the task recognizes holes in the strategies and proposes how quality can be improved. All clinics have a crisis office and in-tolerant areas so that there is at any rate an underlying administration of cases before they are alluded; this is on the grounds that the task centers around handoffs between a crisis division and the inpatient segment. The emergency clinics have the ability of introducing EMR frameworks. It is a proposal in this venture to help improve handoff and advance great patient results. The nursing writing on the theme is adequate to make dependable suggestions regarding the matter. All clinics have adequate staff who are associated with the handoff procedure. Culmination of the accessible r

A separate piece :: essays research papers

A. Title and Author - A Separate Peace by John Knowles B. Story Setting - The story begins at the Devon school, which is a private academy in New Britain at 1958. Be that as it may, the remainder of the story happens through a flashback of his days when he was an understudy at Devon during 1943. C. Principle Characters - Gene Forrester - Gene is the storyteller of the novel and shows up at two distinctive timespans: as a moderately aged man returning to Devon fifteen years subsequent to being an understudy there, and, for most of the novel, as a sixteen and seventeen-year-old understudy during World War II. The epic is written in the past tense, and we accept that Gene's portrayal is activated by his re-appearance of his old fashioned when he is thirty-two. What's more, despite the fact that the more seasoned storyteller appears long past the enthusiastic unrest that denoted his student days, the occasions of his years at Devon are told as though they were happening in the present, as though our storyteller were as yet sixteen years of age. The Quality that we experience for the main part of the novel is, in the same way as other of his colleagues, at a liminal stage in his life-the youth among childhood and masculinity. This change is additionally accentuated by the war, Gene being in the last long periods of opportunity before the assaults of a universal war can lawfully guarantee him. Apparently Gene is one of the top understudies in his group and a capable competitor. These qualities procure him regard nearby and, in particular, the companionship of Phineas, whom Gene regards more than any of his individual colleagues. In any case, deep down, Gene is tormented by the darker powers of human instinct, powers that go after the disturbance of youth. Quality's adoration also, love for Finny is adjusted and damaged by his furious desire of him, by a profound weakness in himself, and, in view of his frailty, a need to contend with and "defeat" his companion no matter what. Quality's interior passionate fights are the significant wellspring of contention and strain in the novel. Phineas - Called Finny by his cohorts, Phineas is Gene's nearest friend at Devon and, for our storyteller, the focal point of the novel. Finny is five feet eight and a half inches tall and gauges one hundred fifty pounds. Without a doubt, Finny is the superhuman marvel of games and physical concordance at Devon, far outperforming any opposition from his schoolmates, Gene notwithstanding. In addition, Finny's physical ability coordinates that of his character he is a charming, pleasant, and enticing youngster.

Read This, Then That Two Books About Superman

Read This, Then That Two Books About Superman I dont know about you, but my interest in Superman as a character has never been terribly great. It amounts to a bit of frustration when I encounter him in comics (and dodgy films), because its so bothersome to feel like people are doing so little with such a potentially interesting character. Beyond that, my interest in him is almost purely academic, because hes such an old character and predates so many superheroes. Now and then, though, I react to Superman works with tremendous enthusiasm, and I realized that two of them are very interesting next to each other. Youll see what I mean when we get into em. Kavalier Clay by Michael Chabon Michael Chabon is one of those authors I am deeply suspicious of. Hes a brilliant, award-winning writer with a tremendous range, hes good-looking, hes charming and well-spoken, he can write in multiple mediums and its just too much. I assume hes a robot, or hes assembled out of a lot of smaller authors, standing on each others shoulders inside a trenchcoat. No I dont watch too many cartoons, mother. At any rate, his novel Kavalier Clay is a prime example of his remarkable writing. It won the Pulitzer Prize, and it deserved the hell out of it. Its the story of Joe  Kavalier, a stoic young man with a difficult early life who comes to America in a strange way, in 1939. While here, he meets a young Sammy  Clay, and they become fast friends. Eventually, they also become working partners when they discover that Kavalier has a remarkable talent for drawing, and Clay is an excellent writer. Slowly, they enter into the world of comics, and soon find themselves creating one of the first superheroes, the Escapist. The book is a long, biographical look at their lives, the highs and lows, the ebb and flow of their friendship, the difficulties in the world around them as World War II happens. It also is a remarkable history of the early pulp fiction scene and the early superhero comic scene â€" and if the names have been changed to protect the innocent, a cursory knowledge of comic history will reveal to you who everyone is. In that regard, its a pleasure. I love fictionalized history, especially when its a period I know something about (and early pulp and comics is a fascinating world, and I love it much like I love animation history. Youll perhaps join me in this love after reading this novel). The superhero that Kavalier and Clay create is perhaps not explicitly him, but he is definitely Superman, and they are definitely Joe and Jerry, his creators. Its fascinating to look behind-the-scenes at the early days of an iconic character, not only dealing with editors and censorship (and Joe McCarthys communist witchhunt), but other interesting areas, like that period in World War II when superheroes themselves went to war, or sold war bonds and stamps, or just appear in propoganda. You dont finish the book with an accurate history of Superman, because its all been fictionalized, but you do have a functional history of the time period. And also all of your feelings stomped on a bit, because it is a gorgeous, powerful novel. Its Superman! by TomDe Haven This is another early-20th Century novel about Superman, but we take a different approach here. While Kavalier Clay is a behind-the-scenes look at the character, his creators, and the world in which his stories and his fame grew, Its Superman is instead a realistic and literary look at what the character and his world would be like, if he actually landed in Kansas during the Great Depression, was raised by farmers, and went out into the world as a person named Clark Kentwho happened to not be from this world, and who happened to have incredible powers. And eventually, what would happen when the lure of television and films appealed to him and he went out to Hollywoodland, itself in its early days. When I talk about how the book reads something like The Grapes of Wrath by John Steinbeck, I think I put people off, who are expecting a dense and classic work of literature that theyll perhaps be forced to read in schools and write an essay about. Really, that isnt what I mean at all. Its Superman is a serious literary sort of book, sure, but it always seems aware of the fun of its central character, and how alien he is in the world around himmetaphorically, in the way so many young people feel, and literally, in that he is a superpowered alien. So where we went behind the scenes in the last book, here we take the same time period and the same character, and put him squarely in front of the camera, so to speak. Between the two of them, you get a fascinating look at Superman in the early 20th century, which in my humble opinion is where he fits best. You get a rounded look at early 20th century culture â€" particularly pop culture, and the ways it influenced and was influenced in turn by the world events happening around it â€" and you get a rounded look at the notion of Superman, treated as a fiction and as a real person. Bonus Read: This remains one of my favorite PICTURES of Superman, incidentally The two books I mentioned up there are completely fine on their own, youll get the whole picture I wanted to offer youbut I wanted to suggest a comic for you as well, for further reading, and thats All-Star Superman by Grant Morrison and Frank Quitely. Volume one, at the very least. Even if you arent typically a Superman fan (and as I said, Im really not), I really urge you to check this one out. The Superman on display is very different to ones we typically see. Hes sweet and clever, compassionate, funny, and drawn less like a walking slab of barely hung-together muscles (I know he isnt always, but sometimes) and more like an actual person, wearing actual cloth. The stories are fun, and always beautiful. Its the first â€" and nearly the only â€" time Ive felt someone really understood the potential of Superman and exploited it to full effect. Theyre some of my favorite comics, and I revisit them repeatedly. Also, theres a single page encounter on top of a skyscraper between Superman and a young goth girl, and it broke my heart in the best way possible. Its worth reading for that. (And for the less heartbreaking moments, mind you). Sign up to The Stack to receive  Book Riot Comic's best posts, picked for you. Thank you for signing up! Keep an eye on your inbox.

Essay Absolute Monarchism - 700 Words

The prevailing government of Europe from 1900-century back was absolute monarchism, this form of government worked very well considering the belief of all people in god and the teaching. Monarchist use this belief to justify this rule in. if they could make the people believe that they were ordained position by god then they had no worries because the people belief in god was so prevailing that it was not mentionable in private to go against it. Napoleon and Louis XIV were the ideal rules to use this type of ruling. Napoleon and Louis XIV were the same type of rulers by using the divine right monarchy to control the people of their country, which was France. Napoleon and Louis way of ruling and other similarity were so alike that they†¦show more content†¦Ã¢â‚¬Å"I gave orders to the four Secretaries of state no longer to sign anything whatsoever without speaking to me: likewise to the controller, and that he should authorize nothing as regards finance without its being regis tered in a book which must remain with me(R 17). Louis wrote this to his heirs as advice on how to rule. He kept everyone under a close eye, he could not trust. . He even went as far as to invaded the postal system â€Å"The king was informed of what was passing for many years before anybody knew it was that of opening letters†(R 24). If the letter say anything against the king or France the writer of the letter were exiled without even trial. : â€Å"In fact Napoleon crowned himself emperor since he did no recognize the pope’s authority as superior to his own†(R 138). Napoleon would not even let the pope honor him as the king of France. It was like he was saying that I am more divine than you, I am more superior to god than you because I am the divine ruler. Appropriately, Napoleon found divine sanction for his power. The imperial Catechism made the people believe that Napoleon was the divine ruler. Peists use to ask the commoners â€Å"What are the duties of Christians towards those who govern them and what in Particular are our duties towards Napoleon I, our emperor†(R 142). . The Christians would answer, â€Å" Christians owe to the princes who govern them, and we in particular owe to Napoleon I, our emperor,Show MoreRelatedThe Theory of Absolutism Essay3273 Words   |  14 PagesThe Theory of Absolutism Absolute monarchy or absolutism meant that the sovereign power or ultimate authority in the state rested in the hands of a king who claimed to rule by divine right. But what did sovereignty mean? Late sixteenth century political theorists believed that sovereign power consisted of the authority to make laws, tax, administer justice, control the states administrative system, and determine foreign policy. These powers made a ruler sovereign. OneRead MoreThe Church Of The Martyrs1494 Words   |  6 Pagescentury but did not fully blossom until the fourth century. There are hundreds of monasteries and thousands of caves still used today that are scattered around Egypt. Monasticism has three forms; monarchism, the Coenobitic System, and the communal system. Monarchism consist of the hermits who live in absolute seclusion, they only visit a monastery when they need guidance on something specific. These hermits are also known as Anchorites; the very first Anchorite was Saint Paul who according to the teachingsRead MoreEssay on Ap Euro Review Packet1669 Words   |  7 PagesThe Whigs were a party in the Parliament of England, Parliament of Great Britain, and Parliament of the United Kingdom, who contested power with the rival Tories from the 1680s to the 1850s. The Whigs origin lay in constitutional monarchism and opposition to absolute rule. Both parties began as loose groupings or tendencies, but became quite formal by 178 4, with the ascension of Charles James Fox as the leader of a reconstituted Whig party ranged against the governing party of the new ToriesRead MoreThe Soviet Union and Nazi Germany in the 1930s as Totalitarian States1265 Words   |  6 Pagesone-party rule, elitism, strict party discipline, purges against enemies and political dissidents, planned economy, strong armaments, indoctrination, encouragement of nationalism, an official doctrine that everybody has to believe, and absolute obedience of individuals to the State, etc. In the 1930s, to a large extent, the Soviet Union under Joseph Stalin and Nazi Germany under Adolf Hitler could be deemed totalitarian states. The rise of totalitarianism in Europe wasRead MoreThe Views And Components Of Classical Liberalism1227 Words   |  5 Pagesdecided to homogenize with the new technology or educate themselves, either path making them more relevant in the economic and legal sectors of countries. Moreover, classical liberalism allowed the United States to veer from the English thought of Monarchism and birthright, and instead stressed the views of pluralism and meritocracy. As working class citizens secured economic and legal influence, affluent families and families that carried power in the previous generations compromised with and accommodatedRead MoreThe Iranian Political Dynamic1468 Words   |  6 Pagessystem. The Iranian political system is based on an agglomeration of politics and religion. The head of this unique political system is the supreme religious leader: the Ayatollah. Notably, the Shite clergy rule over Iran and as such, it embodies the absolute supremacy of Islam. The political system is also a fusion of theocracy and democracy. On one end, it limits pluralism and on the other it allows election of leaders through a public general election. The constitution of Iran allows popular sovereigntyRead MoreCompare and Contrast between Angkor Wat and the Pyramid o f Giza1646 Words   |  7 Pages(1983, p.23), first dynasty that was established in Egypt were the Menes, who united the upper and lower Egypt and reestablished a new ruling system which period known as the old kingdom. During the old kingdom, the pharaoh, or the great house, has absolute control and organized Egypt into a strong centralized government (Beers, 1983, p.23). Next, the citizens in the both periods are strongly believed in their religions that assisted in the completion of the two structures. Suryavarman II, who wasRead More The Importance Of The Press Essays2570 Words   |  11 Pagesgreat revolutions. Monarchism is an ideology that believes in the absolute rule of a quot;royalquot; family. The king and/or queen have the power to make decisions without question from anyone. The series of revolutions which included the English Reformation, the American and French Revolutions, and to a lesser extent the revolts in Upper and Lower Canada, were all confrontations over who should hold political ascendancy. Moreover, they were clashes of ideology, between monarchism and liberalism.Read MoreNationalism And The Soviet Union2509 Words   |  11 Pagesto the class struggle of the proletarian. Marx eventually linked nationalism to class struggle is his recognition that â€Å"nationalism could be an important factor in freeing some countries from the yoke of ‘Asiatic barbarism,’ feudalism, and absolute monarchism†. Therefore under Marxist ideology, nationalism was a modern formation that could be utilized by the proletariat to free themselves from capitalism. However, it is important to note that both Marx and Engels were selective in who they thoughtRead MoreThe Fall of the United States/Rome II?3132 Words   |  13 PagesStructures’ of roman government The Roman Constitution was mainly handed down verbally and sustained changes over time. It was created as a three branch system of government out of modern governing systems at the time. Democracy, Aristocracy and Monarchism were used as the basis for the division of power into the three institutions; Legislative Assembly, The Senate, and The Consuls. The Senate – Aristocracy The Senate was legendarily founded in the first days of Rome, 753B.C. The Senate was the most

Needs of Diverse Students - 1384 Words

Educating Special Needs Students Identifying and providing for special needs children is essential to special education. Once a child has been diagnosis with a disability or multiple disabilities, a plan of care is initiated according to the severity of their condition and their needs. This plan is individualized; one child’s diagnosis is not a reflection of the wide range conditions that affect many children. Intellectual disabilities can be mild to profound, can be caused by different factors and can have a different impact on a student’s education and adult life. (Hardman, Drew, Egan, 2013). Professionals have found many causes for disabilities from genetic to medical. Whatever the cause of these disabilities educators must†¦show more content†¦Autism is labeled among the most complicated, complex disability. Autism is defined as â€Å"a pervasive developmental disorder with onset prior to age 3, characterized by qualitatively impaired social interactive and social communicative ski lls along with restricted and repetitive repertoire of behavior, interests, and activities.† (Hardman, Drew, Egan, 2013). No particular cause has been linked to autism, however it has been established that abnormalities in brain structure and function is a general explanation. (Autism Society, n.d). Autism is a developmental disability that effects how a person thinks, learns and understands the world. This will pose a large impact on the education of students. Characteristics of autism differ in all children and can impact students differently. Some can have difficulties in communication, social interaction, repetitive behavior, restricted interest, sensory processing, and learning styles. (Autism Society, n.d). Any encounter multiple children with autism you will soon realize that their needs and their difficulties can differ. Understanding how their individual characteristics impact their everyday life brings forth a successful path to their educational future. As many school districts are implementing inclusion, some students with autism may be included the general education environment, while using other services to meet theirShow MoreRelatedLearning Disabilities And Diverse Students With Special Needs819 Words   |  4 Pagesarticle, Strategies for Culturally and Linguistically Diverse Students with Special Needs, the author describes the assessment and instructional issues related to culturally and linguistically diverse students with special needs. The article goes into detail to discuss the current trends, prevalence rates, and general guidelines for appropriate assessments when working with English language learners who are also diagnosed with special needs. The author also includes in the article, research-basedRead MoreSpecial Students With Disabilities And Culturally Diverse Needs862 Words   |  4 Pageseducators morals and ethics: inclusion, serving students with disabilities and culturally diverse needs, and access to grade appropriate general education curriculum for students with severe intellectual disabilities. Before discussing the present, let us look at the past to understand the future. During the 1970s, it is estimated around 20% of students with disabilities were receiving an education from a public school (Yell, 2012). Children with special needs were first provided access to public educationRead MoreCreating An Optimal Learning Environment For Students With Diverse Needs986 Words   |  4 Pagesdifferences of each student, to create an optimal learning environment for students to reach high standards in education, while being cognitive of cultural influences. With a cultural understanding educators can enhance the educational process by utilizing unique approaches to help students create connections to topics so that, students will have a desire to learn. Through several medias I have shown my ability to perform this standard. Understanding individual differences that students may have as wellRead MoreHow Educators For Students With Children With Learning Disabilities And Their Diverse Learning Needs843 Words   |  4 Pageslittle planning and thought given to how to prepare educators for their new and difficult role† (p. 439) is being far from true. This speaks to the fact that preparing teachers to handle the responsibility of working with SWD and their diverse learning needs should be a component in all CTE certification programs (Harvey, 1999). Research by Lobosco Newman (1992) linked to working with SWD has shown that â€Å"lack of adequate professional preparation of teachers for dealing with the challengesRead MoreMeeting the Diverse Needs of all Students: Teaching and Learning Strategies that I Plan to Use as a New Teacher1247 Words   |  5 Pagesa teacher there will be two initial steps that I will need take in order for me to successfully offer students in my classroom an education that is accessible to all. First I will need to acknowledge that all students’ are unique individuals and that their emotional, educational, social and physical needs are diverse and will require differentiated approaches. Secondly, I need to have an attitude that values diversity and know that all students will have talents, abilities and the capability to learnRead MoreWe Need A Culturally Diverse Class867 Words   |  4 PagesDo we need a culturally diverse class? 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Diverse teaching and a diverse set of nursing students is what is needed in orderRead MoreCreating A School Of Diverse Learners. Texas Schools Are1646 Words   |  7 PagesSchool of Diverse Learners Texas schools are becoming more diverse every year. The Texas Tribune (2015) released an article stating well over half of the 5.2 million students in the Texas schools were Hispanic. This number has increased from 15 years ago, when the number was around 40 percent. Not only has the Hispanic numbers increased, but the number of Asian students have doubled as well. Even more surprising is the percentage of the white student population. The number of white students in TexasRead MoreAccommodating Differences in Education Essay1044 Words   |  5 PagesTeachers must work in a diverse classroom which requires the educator to exceed or at least meet the needs of their students. Students will have different personalities, skills, interests and learning needs. New teachers find diverse classrooms very challenging to individualize a lesson plan. Instructing a class of students that are not all identical to each other is rewarding. Teaching a group of different pupils will give a new t eacher professional improvement and development. Instructing a classRead MoreHow Diversity Influences Teaching Styles And Classroom Relationships1160 Words   |  5 PagesTeaching Styles and Classroom Relationships Today’s educational environmental landscape is a cornucopia of diverse students, with diverse backgrounds, cultural norms and values that influence their learning and relationships to teachers and other students. Today’s teachers face the need to consistently focus on ways to better prepare and serve these students in the classroom. Many of these students may come from backgrounds that are linguistically different, culturally different or may have experienced

The Vampire Diaries The Struggle Chapter Twelve Free Essays

string(65) " arrived and the meal began, Elena looked up and down the table\." A voice spoke as Elena reached for a can on the store shelf. â€Å"Cranberry sauce already?† Elena looked up. â€Å"Hi, Matt. We will write a custom essay sample on The Vampire Diaries: The Struggle Chapter Twelve or any similar topic only for you Order Now Yes, Aunt Judith likes to do a preview the Sunday before Thanksgiving, remember? If she practices, there’s less chance she’ll do something terrible.† â€Å"Like forgetting to buy the cranberry sauce until fifteen minutes before dinner?† â€Å"Until five minutes before dinner,† said Elena, consulting her watch, and Matt laughed. It was a good sound, and one Elena hadn’t heard for too long. She moved on toward the check-out stand, but after she’d paid for her purchase she hesitated, looking back. Matt was standing by the magazine rack, apparently absorbed, but there was something about the slope of his shoulders that made her want to go to him. She poked a finger at his magazine. â€Å"What areyou doing for dinner?† she said. When he glanced uncertainly toward the front of the store, she added, â€Å"Bonnie’s waiting out in the car; she’ll be there. Other than that it’s just the family. And Robert, of course; he should be there by now.† She meant that Stefan wasn’t coming. She still wasn’t sure how things were between Matt and Stefan these days. At least they spoke to each other. â€Å"I’m fending for myself tonight; Mom’s not feeling so hot,† he said. But then, as if to change the subject, he went on, â€Å"Where’s Meredith?† â€Å"With her family, visiting some relatives or something.† Elena was vague because Meredith had been Aunt Judith’s cooking?† â€Å"For old times’ sake?† â€Å"For oldfriends’ sake,† said Elena after a moment’s hesitation, and smiled at him. He blinked and looked away. â€Å"How can I refuse an invitation like that?† he said in an oddly muted voice. But when he put the magazine back and followed her out he was smiling, too. Bonnie greeted him cheerfully, and when they got home Aunt Judith looked pleased to see him come into the kitchen. â€Å"Dinner’s almost ready,† she said, taking the grocery bag from Elena. â€Å"Robert got here a few minutes ago. Why don’t you go straight on back to the dining room? Oh, and get another chair, Elena. Matt makes seven.† â€Å"Six, Aunt Judith,† said Elena, amused. â€Å"You and Robert, me and Margaret, Matt and Bonnie.† â€Å"Yes, dear, but Robert’s brought a guest, too. They’re already sitting down.† Elena registered the words just as she stepped through the dining room door, but there was an instant’s delay before her mind reacted to them. Even so, sheknew; stepping through that door, she somehow knew what was waiting for her. Robert was standing there, fiddling with a bottle of white wine and looking jovial. And sitting at the table, on the far side of the autumn centerpiece and the tall lighted candles, was Damon. Elena realized she’d stopped moving when Bonnie ran into her from behind. Then she forced her legs into action. Her mind wasn’t as obedient; it remained frozen. â€Å"Ah, Elena,† Robert said, holding out a hand. â€Å"This is Elena, the girl I was telling you about,† he said to Damon. â€Å"Elena, this is Damon†¦ ah†¦Ã¢â‚¬  â€Å"Smith,† said Damon. â€Å"Oh, yes. He’s from my alma mater, William and Mary, and I just ran into him outside the drugstore. Since he was looking for some place to eat, I invited him along here for a home-cooked meal. Damon, these are some friends of Elena’s, Matt and Bonnie.† â€Å"Hi,† said Matt. Bonnie just stared; then, she swung enormous eyes on Elena. Elena was trying to get a grip on herself. She didn’t know whether to shriek, march out of the room, or throw the glass of wine Robert was pouring in Damon’s face. She was too angry, for the moment, to be frightened. Matt went to bring in a chair from the living room. Elena wondered at his casual acceptance of Damon, and then realized he hadn’t been at Alaric’s party. He wouldn’t know what had happened there between Stefan and the â€Å"visitor from college.† Bonnie, though, looked ready to panic. She was gazing at Elena imploringly. Damon had risen and was Before Elena could come up with a response, she heard Margaret’s high little voice in the doorway. â€Å"Matt, do you want to see my kitty? Aunt Judith says I can keep her. I’m going to call her Snowball.† Elena turned, fired with an idea. â€Å"She’s cute,† Matt was saying obligingly, bending over the little mound of white fur in Margaret’s arms. He looked startled as Elena unceremoniously grabbed the kitten from under his nose. â€Å"Here, Margaret, let’s show your kitty to Robert’s friend,† she said, and thrust the fluffy bundle into Damon’s face, all but throwing it at him. Pandemonium ensued. Snowball swelled to twice her normal size as her fur stood on end. She made a noise like water dropped on a red-hot griddle and then she was a snarling, spitting cyclone that clawed Elena, swiped at Damon, and ricocheted off the walls before tearing out of the room. For an instant, Elena had the satisfaction of seeing Damon’s night black eyes slightly wider than usual. Then the lids drooped down, hooding them again, and Elena turned to face the reaction of the other occupants of the room. Margaret was just opening her mouth for a steam engine wail. Robert was trying to forestall it, hustling her off to find the cat. Bonnie had her back pressed flat against the wall, looking desperate. Matt and Aunt Judith, who was peering in from the kitchen, just looked appalled. â€Å"I guess you don’t have a way with animals,† she said to Damon, and took her seat at the table. She nodded to Bonnie who reluctantly peeled herself off the wall and scuttled for her own seat before Damon could touch the chair. Bonnie’s brown eyes slid around to follow him as he sat down in turn. After a few minutes, Robert reappeared with a tear-stained Margaret and frowned sternly at Elena. Matt pushed his own chair in silently although his eyebrows were in his hair. As Aunt Judith arrived and the meal began, Elena looked up and down the table. You read "The Vampire Diaries: The Struggle Chapter Twelve" in category "Essay examples" A bright haze seemed to lie over everything, and she had a feeling of unreality, but the scene itself looked almost unbelievably wholesome, like something out of a commercial. Just your average family sitting down to eat turkey, she thought. One slightly flustered maiden aunt, worried that the peas will be mushy and the rolls burnt, one comfortable uncle-to-be, one golden-haired teenage niece and her tow-headed baby sister. One blue-eyed boy-next-door type, one spritely girlfriend, one gorgeous vampire passing the candied yams. A typical American household. Bonnie spent the first half of the meal telegraphing â€Å"What do I do?† messages to Elena with her eyes. But when all Elena telegraphed back was â€Å"Nothing,† she apparently decided to abandon herself to her fate. She began to eat. Elena had no idea what to do. To be trapped tike this was an insult, a humiliation, and Damon knew it. He had Aunt Judith and Robert dazzled, though, with compliments about the meal and light chat about William and Mary. Even Margaret was smiling at him now, and soon enough Bonnie would go under. â€Å"Fell’s Church is having its Founders’ Day celebration next week,† Aunt Judith informed Damon, her thin cheeks faintly pink. â€Å"It would be so nice if you could come back for that.† Aunt Judith looked pleased. â€Å"And this year Elena has a big part in it. She’s been chosen to represent the Spirit of Fell’s Church.† â€Å"You must be proud of her,† said Damon. â€Å"Oh, we are,† Aunt Judith said. â€Å"So you’ll try to come then?† Elena broke in, buttering a roll furiously. â€Å"I’ve heard some news about Vickie,† she said. â€Å"You remember, the girl who was attacked.† She looked pointedly at Damon. There was a short silence. Then Damon said, â€Å"I’m afraid I don’t know her.† â€Å"Oh, I’m sure you do. About my height, brown eyes, light brown hair†¦ anyway, she’s getting worse.† â€Å"Oh, dear,† said Aunt Judith. â€Å"Yes, apparently the doctors can’t understand it. She just keeps getting worse and worse, as if the attack was still going on.† Elena kept her eyes on Damon’s face as she spoke, but he displayed only a courteous interest. â€Å"Have some more stuffing,† she finished, propelling a bowl at him. â€Å"No thank you. I’ll have some more of this, though.† He held a spoonful of jellied cranberry sauce up to one of the candles so that light shone through it. â€Å"It’s such a tantalizing color.† Bonnie, like the rest of the people at the table, looked up at the candle when he did this. But Elena noticed she didn’t look down again. She remained gazing into the dancing flame, and slowly all expression disappeared from her face. Oh,no , thought Elena, as a tingle of apprehension crept through her limbs. She’d seen that look before. She tried to get Bonnie’s attention, but the other girl seemed to see nothing but the candle. â€Å"†¦ and then the elementary children put on a pageant about the town’s history,† Aunt Judith was saying to Damon. â€Å"But the ending ceremony is done by older students. Elena, how many seniors will be doing the readings this year?† â€Å"Just three of us.† Elena had to turn to address her aunt, and it was while she was looking at Aunt Judith’s smiling face that she heard the voice. â€Å"Death.† Aunt Judith gasped. Robert paused with his fork halfway to his mouth. Elena wished, wildly and absolutely hopelessly, for Meredith. â€Å"Death,† said the voice again. â€Å"Death is in this house.† Elena looked around the table and saw that there was no one to help her. They were all staring at Bonnie, motionless as subjects in a photograph. Bonnie herself was staring into the candle flame. Her face was blank, her eyes wide, as they had been before when this voice spoke through her. Now, those sightless eyes turned toward Elena. â€Å"Your death,† shoulders, lifting her. Bonnie’s skin had gone bluish-white, her eyes were closed. Aunt Judith fluttered around her, dabbing at her face with a damp napkin. Damon watched with thoughtful, narrowed eyes. â€Å"She’s all right,† Robert said, looking up in obvious relief. â€Å"I think she just fainted. It must have been some kind of hysterical attack.† But Elena didn’t breathe again until Bonnie opened groggy eyes and asked what everyone was staring at. It put an effective end to the dinner. Robert insisted that Bonnie be taken home at once, and in the activity that followed Elena found time for a whispered word with Damon. â€Å"Get out!† He raised his eyebrows. â€Å"What?† â€Å"I said, get out! Now! Go. Or I’ll tell them you’re the killer.† He looked reproachful. â€Å"Don’t you think a guest deserves a little more consideration?† he said, but at her expression he shrugged and smiled. â€Å"Thank you for having me for dinner,† he said aloud to Aunt Judith, who was walking past carrying a blanket to the car. â€Å"I hope I can return the favor sometime.† To Elena he added, â€Å"Be seeing you.† Well,that was clear enough, Elena thought, as Robert drove away with a somber Matt and a sleepy Bonnie. Aunt Judith was on the phone with Mrs. McCullough. â€Å"I don’t know what it is with these girls, either,† she said. â€Å"First Vickie, now Bonnie†¦ and Elena has not been herself lately†¦Ã¢â‚¬  While Aunt Judith talked and Margaret searched for the missing Snowball, Elena paced. She would have to call Stefan. That was all there was to it. She wasn’t worried about Bonnie; the other times this had happened hadn’t seemed to do permanent damage. And Damon would have better things to do than harass Elena’s friends tonight. He was coming here, to collect for the â€Å"favor† he’d done her. She knew without a doubt that that was the meaning of his final words. And it meant she would have to tell Stefan everything, because she needed him tonight, needed his protection. Only, what could Stefan do? Despite all her pleas and arguments last week, he had refused to take her blood. He’d insisted that his Powers would return without it, but Elena knew he was still vulnerable right now. Even if Stefan were here, could he stop Damon? Could he do it without being killed himself? Bonnie’s house was no refuge. And Meredith was gone. There was no one to help her, no one she could trust. But the thought of waiting here alone tonight, knowing that Damon was coming, was unbearable. She heard Aunt Judith click down the receiver. Automatically, she moved toward the kitchen, Stefan’s She looked at the floor to ceiling windows and at the elaborate fireplace with its beautifully scrolled molding. This room was part of the original house, the one that had almost completely burned in the Civil War. Her own bedroom was just above. A great light was beginning to dawn. Elena looked at the molding around the ceiling, at where it joined the more modern dining room. Then she almost ran toward the stairs, her heart beating fast. â€Å"Aunt Judith?† Her aunt paused on the stairway. â€Å"Aunt Judith, tell me something. Did Damon go into the living room?† â€Å"What!† Aunt Judith blinked at her in distraction. â€Å"Did Robert take Damon into the living room? Please think, Aunt Judith! I need to know.† â€Å"Why, no, I don’t think so. No, he didn’t. They came in and went straight to the dining room. Elena, what on earth?†¦Ã¢â‚¬  This last as Elena impulsively threw her arms around her and hugged her. â€Å"Sorry, Aunt Judith. I’m just happy,† said Elena. Smiling, she turned to go back down the stairs. â€Å"Well, I’m gladsomeone’s happy, after the way dinner turned out. Although that nice boy, Damon, seemed to enjoy himself. Do you know, Elena, he seemed quite taken with you, in spite of the way you were acting.† Elena turned back around. â€Å"So?† â€Å"Well, I just thought you might give him a chance, that’s all. I thought he was very pleasant. The kind of young man I like to see around here.† Elena goggled a moment, then swallowed to keep the hysterical laughter from escaping. Her aunt was suggesting that she take up Damon instead of Stefan†¦ because Damon was safer. The kind of nice young man any aunt would like. â€Å"Aunt Judith,† she began, gasping, but then she realized it was useless. She shook her head mutely, throwing her hands up in defeat, and watched her aunt go up the stairs. Usually Elena slept with her door closed. But tonight she left it open and lay on her bed gazing out into the darkened hallway. Every so often she glanced at the luminous numbers of the clock on the nightstand beside her. There was no danger that she would fall asleep. As the minutes crawled by, she almost began to wish she could. Time moved with agonizing slowness. Eleven o’clock†¦ eleven thirty†¦ midnight. Onea.m. One thirty. Two. At 2:10 she heard a sound. She listened, still lying on her bed, to the faint whisper of noise downstairs. She’d known he would find a way to get in if he wanted. If Damon was that determined, no lock would keep him out. The hallway was dark, but her eyes had had a long time to adjust. She could see the darker silhouette making its way up the stairs. When it reached the top she saw the swift, deadly glimmer of his smile. She waited, unsmiling, until he reached her and stood facing her, with only a yard of hardwood floor between them. The house was completely silent. Across the hall Margaret slept; at the end of the passage, Aunt Judith lay wrapped in dreams, unaware of what was going on outside her door. Damon said nothing, but he looked at her, his eyes taking in the long white nightgown with its high, lacy neck. Elena had chosen it because it was the most modest one she owned, but Damon obviously thought it attractive. She forced herself to stand quietly, but her mouth was dry and her heart was thudding dully. Now was the time. In another minute she would know. She backed up, without a word or gesture of invitation, leaving the doorway empty. She saw the quick flare in his bottomless eyes, and watched him come eagerly toward her. And watched him stop. He stood just outside her room, plainly disconcerted. He tried again to step forward but could not. Something seemed to be preventing him from moving any farther. On his face, surprise gave way to puzzlement and then anger. He looked up, his eyes raking over the lintel, scanning the ceiling on either side of the threshold. Then, as the full realization hit him, his lips pulled back from his teeth in an animal snarl. Safe on her side of the doorway, Elena laughed softly. It had worked. â€Å"My room and the living room below are all that’s left of the old house,† she said to him. â€Å"And, of course, that was a different dwelling place. One you werenot invited into, and never will be.† His chest was heaving with anger, his nostrils dilated, his eyes wild. Waves of black rage emanated from him. He looked as if he would like to tear the walls down with his hands, which were twitching and clenching with fury. Triumph and relief made Elena giddy. â€Å"You’d better go now,† she said. â€Å"There’s nothing for you here.† One minute more those menacing eyes blazed into hers, and then Damon turned around. But he didn’t head for the stairway. Instead, he took one step across the hall and laid his hand on the door to Margaret’s room. Elena started forward before she knew what she was doing. She stopped in the doorway, grasping the casing trim, her own breath coming hard. His head whipped around and he smiled at her, a slow, cruel smile. He twisted the doorknob slightly without looking at it. His eyes, like pools of liquid ebony, remained on Elena. â€Å"Your choice,† he said. Elena stood very still, feeling as if all of winter was inside her. Margaret was just a baby. He couldn’t mean it; no one could be such a monster as to hurt a four-year-old. Everything seemed to be happening in slow motion. She saw Damon’s hand on the doorknob; she saw those merciless eyes. She was walking through the doorway, leaving behind the only safe place she knew. Death was in the house, Bonnie had said. And now Elena had gone to meet Death of her own free will. She bowed her head to conceal the helpless tears that came to her eyes. It was over. Damon had won. She did not look up to see him advance on her. But she felt the air stir around her, making her shiver. And then she was enfolded in soft, endless blackness, which wrapped around her like a great bird’s wings. How to cite The Vampire Diaries: The Struggle Chapter Twelve, Essay examples

The Scarlet Letter And The Differences Between free essay sample

Dimmesdale And Chillingworth Essay, Research Paper In this book, two of the chief characters are in complete contrast of each other sing the consequence of wickedness on their lives. Arthur Dimmesdale has a awful secret. His secret is so great that it could destroy his life everlastingly. The secret that so haunts him is the fact that he committed adultery along with Hester and created a babe miss named Pearl. He is so frightened to state the people because they hold him in such high respect. He is shaped into a shy, quiet, recluse adult male from this atrocious incident that was created. Roger Chillingworth has an even more deceivious secret. Merely one other individual knows who he truly is and that individual is Hester Prynne. He is in secret Hester? s hubby that has been gone for 2 or more old ages. He doesn? t want people to cognize who he is so he can torment Dimmesdale without his knowing of it. We will write a custom essay sample on The Scarlet Letter And The Differences Between or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page His secret shapes him into an evil, average, manipulative individual. Chillingworth Acts of the Apostless really cruel to Dimmesdale and Hester after larning their secret. He knows from the beginning that Dimmesdale is the male parent of Pearl. He fells as though Arthur Dimmesdale has sinned in a manner worse than Hester has. He set out to torment Arthur. He moves into Dimmesdale? s place to play with his head and pattern bad medical specialty upon him. He shows one that he is a bad individual from the minute he starts playing his games. Dimmesdale is really different the Chillingworth so, of class, his reaction to Chillingworth? s secret is really different. His really first reaction is anger towards Hester. He can non believe that she would maintain such an of import secret like this one from him. The worst thing about his reaction is he is really disquieted that Chillingworth deceived him. But out of all of this, he neer gets huffy at Chillingworth, merely Hester. His eventually forgiving Hester and merely being upset non huffy at Chillingworth shows even though he committed a wickedness he is still a good individual with a sort bosom. Through these two characters, one can see the difference between good and evil.

Commodity Market in India Essay Example

Commodity Market in India Essay Example Commodity Market in India Essay Commodity Market in India Essay 1. Commodity and Commodities market 1. 1 INTRODUCTION India, a commodity based economy where two-third of the one billion population depends on agricultural commodities, surprisingly has an under developed commodity market. Unlike the physical market, futures markets trades in commodity are largely used as risk management (hedging) mechanism on either physical commodity itself or open positions in commodity stock. For instance, a jeweller can hedge his inventory against perceived short-term downturn in gold prices by going short in the future markets. The article aims at knowhow of the commodities market and how the commodities traded on the exchange. The idea is to understand the importance of commodity derivatives and learn about the market from Indian point of view. In fact it was one of the most vibrant markets till early 70s. Its development and growth was shunted due to numerous restrictions earlier. Now, with most of these restrictions being removed, there is tremendous potential for growth of this market in the country. 1. 2 COMMODITY A commodity may be defined as an article, a product or material that is bought and sold. It can be classified as every kind of movable property, except Actionable Claims, Money Securities. Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets, may find commodities an unfathomable market. But commodities are easy to understand as far as fundamentals of demand and supply are concerned. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option. In fact, the size of the commodities markets in India is also quite significant. Of the countrys GDP of Rs 13, 20,730 crore (Rs 13,207. 3 billion), commodities related (and dependent) industries constitute about 58 per cent. Currently, the various commodities across the country clock an annual turnover of Rs 1, 40,000 crore (Rs 1,400 billion). With the introduction of futures trading, the size of the commodities market grows many folds here on. . 3 COMMODITY MARKET Commodity market is an important constituent of the financial markets of any country. It is the market where a wide range of products, viz. , precious metals, base metals, crude oil, energy and soft commodities like palm oil, coffee etc. are traded. It is important to develop a vibrant, active and liquid commodity market. This would help investors hedge their comm odity risk, take speculative positions in commodities and exploit arbitrage opportunities in the market. Table: 1 Turnover in Financial Markets and Commodity Market (Rs in Crores) S No. Market segments 2002-03 2003-04 2004-05 (E) 1Government Securities Market 1,544,376(63)2,518,322(91. 2)2,827,872(91) 2Forex Market 658,035(27)2,318,531(84)3,867,936(124. 4) 3Total Stock Market Turnover (I+ II) 1,374,405(56)3,745,507(136)4,160,702(133. 8) I National Stock Exchange (a+b) 1,057,854(43)3,230,002(117)3,641,672(117. 1) a)Cash 617,989 1,099,534 1,147,027 b)Derivatives 439,865 2,130,468 2,494,645 II Bombay Stock Exchange (a+b) 316,551(13)515,505(18. 7)519,030(16. 7) a)Cash314,073 503,053 499,503 b)Derivatives2,478 12,452 19,527 4Commodities Market NA 130,215(4. )500,000(16. 1) Note: Fig. in bracket represents percentage to GDP at market prices Source: Sebi bulletin 1. 4 Its EVOLUTION IN INDIA Bombay Cotton Trade Association Ltd. , set up in 1875, was the first organized futures market. Bombay Cotton Exchange Ltd. was established in 1893 following the widespread discontent amongst leading cotton mill owners and merchants over functioning of Bombay Cotton Trade Association. Th e Futures trading in oilseeds started in 1900 with the establishment of the Gujarati Vyapari Mandali, which carried on futures trading in groundnut, castor seed and cotton. Futures trading in wheat was existent at several places in Punjab and Uttar Pradesh. But the most notable futures exchange for wheat was chamber of commerce at Hapur set up in 1913. Futures trading in bullion began in Mumbai in 1920. Calcutta Hessian Exchange Ltd. was established in 1919 for futures trading in raw jute and jute goods. But organized futures trading in raw jute began only in 1927 with the establishment of East Indian Jute Association Ltd. These two associations amalgamated in 1945 to form the East India Jute Hessian Ltd. to conduct organized trading in both Raw Jute and Jute goods. Forward Contracts (Regulation) Act was enacted in 1952 and the Forwards Markets Commission (FMC) was established in 1953 under the Ministry of Consumer Affairs and Public Distribution. In due course, several other exchanges were created in the country to trade in diverse commodities. 1. 5 Structure of Commodity Market 1. 6 Different types of commodities traded World-over one will find that a market exits for almost all the commodities known to us. These commodities can be broadly classified into the following: Precious Metals: Gold, Silver, Platinum etc Other Metals: Nickel, Aluminum, Copper etc Agro-Based Commodities: Wheat, Corn, Cotton, Oils, Oilseeds. Soft Commodities: Coffee, Cocoa, Sugar etc Live-Stock: Live Cattle, Pork Bellies etc Energy: Crude Oil, Natural Gas, Gasoline etc 1. 7 Different segments in Commodities market The commodities market exits in two distinct forms namely the Over the Counter (OTC) market and the Exchange based market. Also, as in equities, there exists the spot and the derivatives segment. The spot markets are essentially over the counter markets and the participation is restricted to people who are involved with that commodity say the farmer, processor, wholesaler etc. Derivative trading takes place through exchange-based markets with standardized contracts, settlements etc. 1. 8 Leading commodity markets of world Some of the leading exchanges of the world are New York Mercantile Exchange (NYMEX), the London Metal Exchange (LME) and the Chicago Board of Trade (CBOT). 1. 9 Leading commodity markets of India The government has now allowed national commodity exchanges, similar to the BSE NSE, to come up and let them deal in commodity derivatives in an electronic trading environment. These exchanges are expected to offer a nation-wide anonymous, order driven, screen based trading system for trading. The Forward Markets Commission (FMC) will regulate these exchanges. Consequently four commodity exchanges have been approved to commence business in this regard. They are: Multi Commodity Exchange (MCX) located at Mumbai. National Commodity and Derivatives Exchange Ltd (NCDEX) located at Mumbai. National Board of Trade (NBOT) located at Indore. National Multi Commodity Exchange (NMCE) located at Ahmedabad. Turnover on Commodity Futures Markets (Rs. In Crores) Exchange2003-042004-05 FIRST Half NCDEX149054011 NBOT5301451038 MCX245630695 NMCE238427943 ALL EXCHANGES129364170720 1. 10 Volumes in Commodity Derivatives Worldwide 2. Commodity Futures Trading in India 2. 1 INTRODUCTION Derivatives as a tool for managing risk first originated in the Commodities markets. They were then found useful as a hedging tool in financial markets as well. The basic concept of a derivative contract remains the same whether the underlying happens to be a commodity or a financial asset. However there are some features, which are very peculiar to commodity derivative markets. In the case of financial derivatives, most of these contracts are cash settled. Even in the case of physical settlement, financial assets are not bulky and do not need special facility for storage. Due to the bulky nature of the underlying assets, physical settlement in commodity derivatives creates the need for warehousing. Similarly, the concept of varying quality of asset does not really exist as far as financial underlyings are concerned. However in the case of commodities, the quality of the asset underlying a contract can vary largely. This becomes an important issue to be managed. . 2 Benefits to Industry from Futures trading. * Hedging the price risk associated with futures contractual commitments. * Spaced out purchases possible rather than large cash purchases and its storage. * Efficient price discovery prevents seasonal price volatility. * Greater flexibility, certainty and transparency in procuring commodities would aid bank lending. * Facilitate informed lending. * Hedg ed positions of producers and processors would reduce the risk of default faced by banks. * Lending for agricultural sector would go up with greater transparency in pricing and storage. Commodity Exchanges to act as distribution network to retail agri-finance from Banks to rural households. * Provide trading limit finance to Traders in commodities Exchanges. 2. 3 Benefits to Exchange Member * Access to a huge potential market much greater than the securities and cash market in commodities. * Robust, scalable, state-of-art technology deployment. * Member can trade in multiple commodities from a single point, on real time basis. * Traders would be trained to be Rural Advisors and Commodity Specialists and through them multiple rural needs would be met, like bank credit, information dissemination, etc. . 4 Why Commodity Futures? One answer that is heard in the financial sector is we need commodity futures markets so that we will have volumes, brokerage fees, and something to trade. I t hink that is missing the point. We have to look at futures market in a bigger perspective what is the role for commodity futures in Indias economy? In India agriculture has traditionally been an area with heavy government intervention. Government intervenes by trying to maintain buffer stocks, they try to fix prices, and they have import-export restrictions and a host of other interventions. Many economists think that e could have major benefits from liberalization of the agricultural sector. In this case, the question arises about who will maintain the buffer stock, how will we smoothen the price fluctuations, how will farmers not be vulnerable that tomorrow the price will crash when the crop comes out, how will farmers get signals that in the future there will be a great need for wheat or rice. In all these aspects the futures market has a very big role to play. If you think there will be a shortage of wheat tomorrow, the futures prices will go up today, and it will carry signals back to the farmer making sowing decisions today. In this fashion, a system of futures markets will improve cropping patterns. Next, if I am growing wheat and am worried that by the time the harvest comes out prices will go down, then I can sell my wheat on the futures market. I can sell my wheat at a price, which is fixed today, which eliminates my risk from price fluctuations. These days, agriculture requires investments farmers spend money on fertilizers, high yielding varieties, etc. They are worried when making these investments that by the time the crop comes out prices might have dropped, resulting in losses. Thus a farmer would like to lock in his future price and not be exposed to fluctuations in prices. The third is the role about storage. Today we have the Food Corporation of India, which is doing a huge job of storage, and it is a system, which in my opinion does not work. Futures market will produce their own kind of smoothing between the present and the future. If the future price is high and the present price is low, an arbitrager will buy today and sell in the future. The converse is also true, thus if the future price is low the arbitrageur will buy in the futures market. These activities produce their own optimal buffer stocks, smooth prices. They also work very effectively when there is trade in agricultural commodities; arbitrageurs on the futures market will use imports and exports to smooth Indian prices using foreign spot markets. In totality , commodity futures markets are a part and parcel of a program for agricultural liberalization. Many agriculture economists understand the need of liberalization in the sector. Futures markets are an instrument for achieving that liberalization. ***************************************************************************************************************************************************** Sagging Agricultural Commodity Exchanges Growth Constraints and Revival Policy Options Commodity derivatives have a crucial role to play in managing price risk especially in agriculture dominated economies. However, as long as prices of many commodities are restrained to a certain extent by government intervention in p roduction, supply and distribution, forward and futures markets for hedging price risk in those commodities have only limited practical relevance. A review of the nature of institutional and policy level constraints facing this segment calls for more focused and pragmatic approach from the government, the regulator and the exchanges for making the agricultural futures market a vibrant segment for risk management. K G Sahadevan Instability of commodity prices has always been a major concern of the producers as well as the consumers in an agriculture dominated country like India. Farmers’ direct exposure to price fluctuations, for instance, makes it too risky for them to invest in otherwise profitable activities. There are various ways to cope with this problem. Apart from increasing stability of the market by direct government intervention thwarting the market mechanism, various actors in the farm sector can better manage their activities in an environment of unstable prices through derivative markets. These markets serve a risk-shifting function, and can be used to lock-in prices instead of relying on uncertain price developments. Derivatives like forwards, futures, options, swaps, etc, are extensively used in many developed and developing countries in the world. The Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, International Petroleum Exchange, London, London Metal Exchange, London Futures and Options Exchange, ‘Marche a Terme International de France’, Sidney Futures Exchange, Singapore International Monetary Exchange, Singapore Commodity Exchange, Kuala Lumpur Commodity Exchange, ‘Bolsa de Mercadorias Futuros’ (in Brazil); the Buenos Aires Grain Exchange, etc, are some of the leading commodity exchanges in the world engaged in trading of derivatives in commodities. Even in China during the last 10 years of liberalisation of internal market many exchanges were set up for exclusive trading in commodity futures and most of them like Shanghai Metals Exchange; China Commodity Futures Exchange; China Zhengzhou Commodity Exchange, Beijing Commodity Exchange, etc, have witnessed tremendous growth [UNCTAD 1998]. However, they have been utilised on a very limited scale in India. The objective of this paper is to bring to focus the problems and prospects of the futures market in agricultural commodities in India. On the basis of visit to some of the recognised commodity exchanges (see the list in Table 2) the study identifies bottlenecks in the organisational, trading and regulatory set-up of these exchanges and recommends certain broad policy alternatives for the revival of commodity exchanges in general. Historical Perspective Although India has a long history of trade in commodity derivatives, this segment remained underdeveloped due to government intervention in many commodity markets to control prices. The production, supply and distribution of many agricultural commodities are still governed by the state and forwards and futures trading are selectively introduced with stringent controls. While free trade in many commodity items is restricted under the Essential Commodities Act (ECA), 1955, forward and futures contracts are limited to certain commodity items under the Forward Contracts (Regulation) Act (FCRA), 1952. The first commodity exchange was set up in India by Bombay Cotton Trade Association and formal organised futures trading started in cotton in 1875. Subsequently, many exchanges came up in different parts of the country for futures trade in various commodities. The Gujarati Vyapari Mandali came into existence in 1900 which has undertaken futures trade in oilseeds first time in the country. The Calcutta Hessian Exchange and East India Jute Association were set up in 1919 and 1927 respectively for futures trade in raw jute. In 1921, futures in cotton were organised in Mumbai under the auspices of East India Cotton Association (EICA). Many exchanges were set up in major agricultural centres in north India before world war broke out and they were mostly engaged in wheat futures until it was prohibited. The existing exchanges in Hapur, Muzaffarnagar, Meerut, Bhatinda, etc, were established during this period. The futures trade in spices was first organised by India Pepper and Spices Trade Association (IPSTA) in Cochin in 1957. Futures in gold and silver began in Mumbai in 1920 and continued until it was prohibited by the government by mid-1950s. Though options are permitted now in stock market, they are not allowed in commodities. The commodity options were traded during the pre-independence period. Options on cotton were traded until they along with futures were banned in 1939 [Ministry of Food and Consumer Affairs 1999]. However, the government withdrew the ban on futures with passage of FCRA in 1952. The act has provided for the establishment and constitution of Forward Markets Commission (FMC) for the purpose of exercising the regulatory powers assigned to it by the act. Later, futures trade was altogether banned by the government in 1966 in order to have control on the movement of prices of many agricultural and essential commodities. After the ban of futures trade all the exchanges went out of business and many traders started resorting to unofficial and informal trade in futures. On recommendation of the Khusro Committee in 1980 government reintroduced futures on some selected commodities including cotton, jute, potatoes, etc. As part of economic liberalisation of 1990s an expert committee on forward markets under the chairmanship of K N Kabra was appointed by the government of India in 1993. Its report submitted in 1994 recommended the reintroduction of futures which were banned in 1966 and also to widen its coverage to many more agricultural commodities and silver. In order to give more thrust on agricultural sector, the National Agricultural Policy 2000 has envisaged external and domestic market reforms and dismantling of all controls and regulations in agricultural commodity markets. It has also proposed to enlarge the coverage of futures markets to minimise the wide fluctuations in commodity prices and for hedging the risk arising from price fluctuations. In line with the proposal many more agricultural commodities are being brought under futures trading. The Present Status Presently, 15 exchanges are in operation in India carrying out futures trading in as many as 30 commodity items (details are given in Table 1). Out of these, two exchanges, viz, IPSTA, Cochin and the Bombay Commodity Exchange (BCE) have been recently upgraded to international exchanges to deal in international contracts in pepper and castor oil respectively. Moreover, permission has been given to another two exchanges, viz. The First Commodities Exchange of India, Kochi (for copra/coconut, its oil and oilcake), and Keshav Commodity Exchange, Delhi (for potato), where futures trading is expected to start soon. Another eight new exchanges are proposed to set up and some of them are expected to start operation shortly. The government has also permitted four exchanges, viz, EICA, Mumbai; Central Gujarat Cotton Dealers Association, Vadodara; South India Cotton Association, Coimbatore; and Ahmedabad Cotton Merchants Association, Ahmedabad, for conducting NTSD contracts (explained below) in cotton. Lately, as part of further liberalisation of trade in agriculture and dismantling of ECA, 1955 futures trade in sugar has been permitted and three new exchanges, viz, e-Commodities, Mumbai; NCS Infotech, Hyderabad; and e-Sugar India. Com, Mumbai, have been given approval for conducting sugar futures [Ministry of Food and Consumer Affairs 1999]. Table 1:Profile of Commodity Futures Exchanges ExchangeActive MembersCommodity TradedVolume in Lakh Tonnes (Value in Rs Crore) 199920002001 1996-971997-981998-991999-002000-01 India Pepper and Spice Trade Association, Cochin554231Pepper0. 86 (765) 1. 56 (2834) 1. 73 (3411) 1. 24 (2862) 1. 29 (2580) -37Pepper(intl)007 (15) 0. 40 (106) 0. 02 (5. 6) The Bombay Cpmmodity Exchange, Mumbai865Castor seed2. 53 (279) 0. 25 (30) 0. 11 (17) 0. 9 (15) 0. 10 (14) 22Castor oil0. 04 (14)0. 01(5) -9-RBD Palmol-0. 04 (9) Kanpur Commodity Exchange, Kanpur-85Mustard seed, oil and cake-0. 108 (14) The EAst India Cotton Association, Mumbai15177Cotton0. 02 (9) 0. 35 (143) 0. 21 (139) The Chamber of Commerce, Hapur363621Potato0. 79 (29) 1. 76 (56) 0. 09 (5) 0. 22 (5) 0. 52 (14) 263426Gur29. 28 (1655) 30. 10 (2760) 23. 85 (2162) 23. 79 (2236) 28. 80 (2555) Coffee Futures Exchange, Bangalore554Cof fee-0. 50 (289) Ahmedabad Commodity Exchange383655Castor seed54. 84 (5981) 68. 76 (8006) 44. 91 (6854) 30. 68 (5220) 24. 73 (3469) The Rajkot Seeds Oil and Bullion Mercehants Association128- 19. 85 (2167) 21. 36 (2495) 16. 77 (2562) 16. 35 (2811) 18. 94 (2761) National Board of Trade, Indore-4851Soy seed, oil and cake1. 093 (261) 32. 56 (7874) -4-Mustard seed and mustard oil-0. 13 (31) Vijai Beopar Chamber, Muzaffarnagar403535Gur40. 71 (2281) 44. 06 (3429) 61. 34 (9518) 47. 48 (4510) 31. 28 (2877) Bhatinda Om Oil and Oilseeds Exchange, Bhatinda161615Gur29. 81 (1936) 23. 60 (1896) 20. 41 (1813) 21. 88 (2263) 21. 24 (2060) The Meerut Agro Commodities Exchanges Co, Meerut101111Gur2. 45 (144) 3. 25 (248) 3. 58 304) 4. 1 (389) 3. 7 (311) The Rajdhani Oils and Oilseeds Exchange,Delhi172124Gur8. 51 (548) 28. 60 (2231) 4. 51 (383) 8. 24 (787) 7. 78 (668) The East India Jute and Heesian Exchange, Calcutta574071Sacking25. 21 (5022) 5. 58 (1234) 7. 88 (1703) 111Hessian41. 38 (15604) 26. 60 (7342) 2. 43 (569) 0. 003 (0. 81) 0. 0008 (0. 22) The Spices and Oilseeds Exchange, Sangli-37Turmeric0. 83 (149) 0. 81 (152) 0. 01 (6) 0. 0002 (0. 03) 0. 0002 (0. 21) Source: Forward Markets Commission, Mumbai A brief profile of the exchanges which are currently in operation has been presented in Table 1. Many of the existing exchanges have become weak in spite of considerable membership strength and potential for large volume of trade. Some of the observations drawn on the basis of visit to six of these exchanges have been presented later in the paper. The number of members who are actively involved in trading in all these exchanges is abysmally low. It is important to know why traders who in spite of setting up the exchange are not keen to participate in trading actively. It has been observed from many exchanges that trading was unprofitable and could not be relied on it as a full-time business. Any attempt to revive the exchanges and rejuvenate the futures market in India needs to address this issue first. It is interesting to note that even in case of commodities in which very active domestic and international ready market exists with volatile prices, futures trade in those commodities are no attraction to the merchandisers. The IPSTA located in Cochin which is known for futures trade in spices for over five decades has not attracted many traders. It is the only exchange in the world engaged in trading of futures in pepper. Kerala being the producer of lion’s share (around 95 per cent) of pepper in India and Cochin being the port city where a majority of pepper exporters are operating the existing futures exchange should have a larger role to play [UNCTAD 1995]. However, in spite of having more than 150 members in the exchange, only around 10 members’ cubicles in the trading ring were occupied by the respective representatives during the trading hour. A further inquiry into the issue reveals that these members hail from families which are into pepper trade for generations and no new member from outside has come into the business. It is not clear as to why members of the exchange are keen to retain the status of the exchange as a specialised single-commodity exchange. The BCE arguably the richest exchange in India in terms of its infrastructure, is also facing the problem of empty trading ring. Though the exchange has a membership strength close to 600, less than five members are trading actively. Data in Table 1 shows that the volume in castor seed futures declined from 2. 53 lakh tonnes during 1996-97 to just 10,000 tonnes during 2000-01. The EICA which is one of the oldest exchanges in the country has a different story to tell. Cotton has a long tradition of futures trading in India. Cotton futures started in 1857 and continued until it was suspended in 1966. Cotton has large potential for futures trading due to its uncontrolled and uncertain supply and variability of prices. While prices within a crop season fluctuate between 7. 5 and 26. 2 per cent in the last decade, its output varied as much as 14 per cent from one year to the next. It has a strong domestic and international market. India is the third largest producer and the second largest consumer of cotton in the world. Moreover, cotton is placed under OGL list with zero import duty, and quota system for its exports is likely to be dismantled by 2005. Nevertheless, the present status of cotton exchange and the Indian cotton futures contract is no different from other exchanges. Although the exchange has a membership strength over 400, not more than 10 members actively trade in the exchange. It is often argued by the exchange authorities that the government’s indirect control on supply and prices by its procurement makes the futures market in cotton unattractive and worthless. Futures market in many other commodities indeed shows that there is scope for the rejuvenation of this sector in the country. The buoyant trading activities in the newly started National Board of Trade at Indore, the old exchanges like the Chamber of Commerce, Hapur; Viajai Beopar Chamber, Muzaffarnagar; Ahmedabad Commodity Exchange; Bhatinda oil exchange; East India Jute Exchange, Calcutta, etc, are the indications of prospects of futures trade in agricultural commodities. Commodity Futures Contract Futures contracts are an improved variant of forward contracts. They are agreements to purchase or sell a given quantity of a commodity at a predetermined price, with settlement expected to take place at a future date. The futures contracts as against forwards are standardised in terms of quality and quantity, and place and date of delivery of the commodity. The commodity futures contracts in India as defined by the FMC has the following features [Forward Markets Commission 2000]: (a) Trading in futures is necessarily organised under the auspices of a recognised association so that such trading is confined to or conducted through members of the association in accordance with the procedure laid down in the rules and bye-laws of the association. (b) It is invariably entered into for a standard variety known as the ‘basis variety’ with permission to deliver other identified varieties known as ‘tenderable varieties’. c) The units of price quotation and trading are fixed in these contracts, parties to the contracts not being capable of altering these units. (d) The delivery periods are specified. (e) The seller in a futures market has the choice to decide whether to deliver goods against outstanding sale contracts. In case he decides to deliver goods, he can do so not only at the location of the association through w hich trading is organised but also at a number of other pre-specified delivery centres. (f) In futures market actual delivery of goods takes place only in a very few cases. Transactions are mostly squared up before the due date of the contract and contracts are settled by payment of differences without any physical delivery of goods taking place. The terms and specifications of futures contracts, however, vary depending on the commodity and the exchange in which it is traded. The relevant terms and conditions of contracts traded in six sample exchanges in India are presented in Table 2. These terms are standardised and applicable across the trading community in the respective exchanges and are framed to promote trade in the respective commodity. For example, the contract size is important for better management of risk by the customer. It has implications for the amount of money that can be gained or lost relative to a given change in price levels. It also affects the margins required and the commission charged. Similarly, the margin to be deposited with the clearing house has implications for the cash position of customers because it blocks working capital for the period of the contract to which he is a party. Organisational Set-up In the Indian context, the scope of commodity exchanges has been limited to futures trading. They are associations of members which provide all organisational support for carrying out futures trading in a formal environment. These exchanges are managed by a board of directors which is composed primarily of the members of the association. There are also representatives of the government and public nominated by FMC. The majority of members of the board have been chosen from among the members of the association who have trading and business interest in the exchange. The board appoints a chief executive officer who with his team assists the board in day-to-day administration of the exchange. There are different classes of members who capitalise the exchange by way of participation in the form of equity, admission fee, security deposits, registration fee, etc. They are classified as ordinary members, trading members, trading-cum-clearing members, institutional clearing members, and designated clearing bank. The membership requirements for and the composition of members, however, vary from one exchange to the other. In some exchanges there are exclusive clearing members, broker members and registered non-members in addition to the above category of members. Clearinghouse is the organisational set up adjunct to the futures exchange which handles all back-office operations including matching up of each buy and sell transactions, execution, clearing and reporting of all transactions, settlement of all transactions on maturity by paying the price difference or by arranging physical delivery, etc, and assumes all counterparty risk on behalf of buyer and seller. There is no clearinghouse in a forward market due to which buyers and sellers face counterparty risk. In a futures exchange all transactions are routed through and guaranteed by the clearinghouse which automatically becomes a counterpart to each transaction. It assumes the position of counterpart to both sides of the transaction by selling contract to the buyer and buying the identical contract from the seller. Therefore, traders obtain a position vis-a-vis the clearinghouse. It ensures default risk-free transactions and provides financial guarantee on the strength of funds contributed by its members and through collection of margins, marking-to-market all outstanding contracts, position limits imposed on traders, fixing the daily price limits and settlement guarantee fund. The organisational structure and membership requirements of clearinghouses vary from one exchange to the other. The BCE and IPSTA have set up separate independent corporations (namely, Prime Commodities Clearing Corporation of India, and First Commodities Clearing Corporation of India, respectively) for handling clearing and guarantee of all futures transactions in the respective exchanges. While Coffee Futures Exchange India (COFEI), Bangalore has a clearinghouse as a separate division of the exchange, many other exchanges like the Chamber of Commerce, Hapur; Kanpur Commodity Exchange (KCE) and EICA, Mumbai run in-house clearinghouses s part of the respective exchanges. The clearing and guaranty are managed in these exchanges by a separate committee (normally called the clearinghouse committee). Membership of clearinghouse requires capital contribution in the form of equity, security deposit, admission fee, registration fee, guarantee fund contribution in addition to networth requirement depending on its organisational structure. For example, in the BCE the minimum capital requirement for membership in its clearinghouse as applicable to trading-cum-clearing members is Rs 50,000 each towards equity and security deposit, Rs 500 as annual subscription, and additionally, members are required to have networth of Rs 3 lakh. Similarly, COFEI prescribes Rs 5 lakh each towards equity and guarantee fund contribution and Rs 40,000 towards admission fee for a trading-cum-clearing member. However, in exchanges where clearing house is a part of the exchange the payment requirements are lower. For example, KCE prescribes payment of only Rs 25,000, Rs 1,000 and Rs 500 towards security deposit, registration fee and annual fee respectively for a clearing-cum-trading member. Margins (also called clearing margins) are good-faith deposits kept with a clearinghouse usually in the form of cash. There are two types of margins to be maintained by the trader with the clearinghouse: initial margin and maintenance or variation margins. They have important bearing on the success of futures. As they are non-interest bearing deposits payable to the clearinghouse up-front working capital of the trading parties gets blocked to that extent. While a higher margin requirement prevents traders from participating in trading, a lower margin makes the clearinghouse financially weak and hence more vulnerable to default. Internationally, many developed exchanges maintain a low margin on positions due to their better financial strength along with massive volume of trade resulting in large income accruing to them. However, this has not been the case with many exchanges in India. For example, the initial margin liability for transacting the minimum lot size in pepper is Rs 30,000 for domestic contracts and US$ 312. 0 for international contracts. Similarly, the volume of transactions these clearinghouses deal in many exchanges in India is abysmally low making their existence financially unviable. For ensuring financial integrity of the exchange and for counterparty risk-free trade position (exposure) limits have been imposed on clearing members apart from mandatory margins. These limits which are stringent in some exchanges and are liberal in others are normally linked to the members’ contribution towards equity capital or security deposit or a combination of both and settlement guarantee fund. In the BCE exposure limit of a clearing member is the sum of 50 times the face value of contribution to equity capital of the clearinghouse and 30 times the security deposit the member has maintained with the clearinghouse. While COFEI prescribes the limit of 80 times the sum of member’s equity investment and the contribution to the guarantee fund, EICA has stipulated a liberal exposure limit on open positions. It has a limit of 200 and 1,500 units (recall that one contract unit is equivalent to 93. quintals of cotton) respectively for composite and institutional members. The IPSTA has fixed a net exposure limit of 60 units (equivalent to 1,500 quintals) for domestic contracts and 90 units (equivalent to 2,250 quintals) for international contracts. Moreover, the settlement guarantee fund helps clearinghouse to honour all payments in case any trader defaults. The KCE maintains a trade guarantee fund with a corpus of Rs 100 lakh while COFEI in addition to a guarantee fund has su bstituted itself as party to clear all transactions. Yet another check on the possible default is through prescribing maximum price fluctuation on any trading day which helps limit the probable profit/loss from each unit of transaction. The relevant data on permitted price limit has been presented in Table 2. It is clear from the table that the maximum profit/loss potential from trade in each contract unit varies from as low as Rs 800 for potato futures in Chamber of Commerce, Hapur to as high as Rs 15,000 for pepper in IPSTA. Similarly, given the permissible open position of 200 units for a trading-cum-clearing member and maximum price fluctuation of Rs 150 per 100 kg for cotton futures in EICA, the maximum potential loss/profit in a trading day works out to be Rs 28. 05 lakh. Regulation of Commodity Futures Merchandising and stockholding of many commodities in India have always been regulated through various legislations like FCRA 1952; ECA 1955 and Prevention of Blackmarketing and Maintenance of Supplies of Commodities Act (PBMSCA) 1980. The ECA 1955 gives powers to control production, supply, distribution, etc, of essential commodities for maintaining or increasing supplies and for securing their equitable distribution and availability at fair prices. Using the powers under the ECA, 1955 various ministries/departments of the central government have issued control orders for regulating production/distribution/quality aspects/movement, etc, pertaining to the commodities which are essential and administered by them. Currently, 29 commodity groups have been declared essential under the act. The PBMSCA 1980 targets the prevention of unethical trade practices like hoarding and blackmarketing, etc, in essential commodities. It is being implemented by state governments to detain persons who obstruct the supplies of essential commodities. The FCRA 1952 provided for three-tier regulatory system for commodity futures trading in India: (a) an association recognised by the government of India on the recommendation of FMC, (b) the FMC and (c) the central government (department of consumer affairs). Stock exchanges and futures markets being a part of the union list their regulation is the responsibility of the central government. All types of forward contracts in India are governed by the provisions of the FCRA, 1952. The act divides commodities into three categories with reference to extent of regulation, viz, (a) the commodities in which futures trading can be organised under the auspices of recognised association, (b) the commodities in which futures trading is prohibited and (c) the free commodities which are neither regulated nor prohibited. While options in goods are prohibited by the FCRA, 1952, the ready delivery contracts remain outside its purview. The ready delivery contract as defined by the act is the one which provides for the delivery of goods and payment of a price therefor, either immediately or within a period not exceeding 11 days after the date of the contract. All ready delivery contracts where the delivery of goods and/or payment for goods is not completed within 11 days from the date of the contract are forward contracts. The act classifies forward contracts into two: (a) specific delivery contracts and (b) other than specific delivery contracts or futures contracts. Specific delivery contract means a forward contract which provides for the actual delivery of specific qualities or types of goods during a specified time period at a price fixed thereby or to be fixed in the manner thereby agreed and in which the names of both the buyer and the seller are mentioned. The specific delivery contracts are of two types: transferable and non-transferable. The distinction between the transferable specific delivery (TSD) contracts and non-transferable specific delivery (NTSD) contracts is based on the transferability of the rights or obligations under the contract. Forward trading in TSD and NTSD contracts are regulated by FCRA 1952. As per the section 15 of the act every forward contract in notified goods (currently 36 commodity items) which is entered into except those between members of a recognised association or through or with any such member is treated as illegal or void. As per the section 17(1) of the act, 82 items are prohibited from entering into forward contract. The section 18(1) of the act exempts the NTSD contracts from the regulatory provisions. However, over the years the regulatory provisions of the act were applied to the NTSD contracts as well and 79 commodity items are currently prohibited from NTSD contracts under section 17 of the act. Moreover, another 15 commodity items are brought under the regulatory provisions of the section 15 of the act out of which trading in the NTSD contract has been suspended in 12 items. At present, the NTSD contracts in cotton, raw jute and jute goods are permitted only between, through or with the members of the associations specifically recognised for the purpose. Subsequent to the report of the Committee on Forward Markets (known as the Kabra Committee) submitted in 1994 the government has so far permitted futures trading in nearly 35 commodities under the auspices of 23 commodity exchanges located in different parts of the country. The commodities in which futures trading is permitted are: pepper, turmeric, gur, castorseed, hessian, jute sacking, cotton, potato, castor oil, soyabean and its oil and cake, coffee, mustardseed and its oil and oilcake, ground nut and its oil, sunflower oil, copra/coconut and its oil and oilcake, cottonseed and its oil and oilcake, kapas, RBD palmolein, rice bran and its oil and oilcake, sesame seed and its oil and oilcake, safflower seed and its oil and oilcake, and sugar. This list may get enlarged further with the repeal of ECA 1955 and with further liberalisation of farm sector as envisaged in the National Agricultural Policy 2000 and the Union Budget 2002-03. The exchanges are required to get prior approval of the FMC for opening of each contract in commodities which are notified under section 15 of the FCRA 1952. Regulation is essential especially in a private ownership and market-oriented system to ensure the necessary checks and balances in the system. However, stringent and continuous regulation for long period of time would do no good to the system. The initial stringent regulation should ensure that a foolproof and growth oriented control system in terms of set-up of the exchange and its sound management, a clearinghouse which can promote trade and its financial integrity, sound and facilitating contract terms and conditions, etc, is in place. The exchanges are already assumed to be self-regulatory agencies. Their role must get strengthened further along with FMC minimising its role as a facilitator making the existing regulation an ‘appropriate regulation’. Constraints and Policy Options Commodity exchanges in India are in their nascent stage of development. There are numerous bottlenecks in the growth of this particular segment in India. These problems are not unknown to the government and the FMC. The FMC has already coordinated a number of studies carried out by experts with funding from World Bank during 1999-00. An integrated report [Youssef 2000] of these wide ranging studies has highlighted several issues for the consideration of government and FMC. These institutional and policy level issues have to be addressed by the government and the FMC for rejuvenating the paralysed agricultural futures markets. Some of the major problems that handicap the commodity exchanges are discussed below [Sahadevan 2002a]. Constitution of exchanges: All commodity exchanges in India are mutual organisations. They are promoted by traders who carryout trading as well as keep the management control of exchanges. The exchange staff including the chief executive officer/secretary is the staff of promoters. This structure poses a serious threat to the integrity of exchanges. The structure needs to be altered so as to ensure an arms length relationship between those who promote and manage the exchange on the one hand and those who have trading interest in exchanges on the other. Many leading exchanges in the world like Chicago Mercantile Exchange, International Petroleum Exchange, and New York Mercantile Exchange, etc, are demutualised organisations where arms-length relationship between management and trading is maintained. The pepper exchange in Cochin is seriously considering change in its set up from a non-profit making organisation to a profit-making equity-based organisation with public participation. Trading parameters: The terms and conditions of contracts play a crucial role in the growth and development of trading in any exchange. They should be market friendly in the sense that the terms are affordable to large traders as well as small traders and should be attractive to all prospective beneficiaries of futures trading including growers, processors, merchandisers, consumers, etc. However, the contract specifications (as given in Table 2) in many exchanges are prohibitive to many segments. For example, the lot size of cotton contract in EICA is 55 bales which is equivalent to nearly 10 tonnes of cotton. Similarly, the costlier commodity like pepper for which the lot size fixed by the pepper exchange, Cochin is 2. 5 tonnes with 15 tonnes as deliverable quantity. Many such finer aspects of contracts can be pointed out which apparently seem to go against the wider interests of prospective beneficiaries of futures trading. One needs to really go into the micro details of these specifications before making any judgments as to how market friendly these contracts are. Notes: IM and SM represent initial margin and special margin respectively. Price limit and margins vary from time to time. 1 Delivery month of the contract. 2 Bench Mark Price is the average of the opening, highest, lowest and the closing prices of the first three trading days of commencement month of any contract. 3 Bench Mark Price is arrived at by taking the average of the opening, highest, lowest and closing prices of the commencement day of trading of any contract. 4 The official closing price (OCP) is the weighted average price of the trades executed during the last 30 minutes of the trading session. Gross Exposure (GE) means the sum total of net outstanding position. 6 Delivery month relating to international castor oil contracts and all other specifications are common for all commodities traded in Bombay Commodity Exchange. 7 The Bench Mark Price (BMP) is determined by taking the weighted average of the transacted price of all the contracts traded on the first five days of the contract. Source: Bye-Laws of the respective exchanges. Infrastructure: L ack of efficient and modern infrastructural facilities are bottlenecks in the growth of futures markets in India. Though some of the exchanges notably BCE and EICA own huge office premises, they lack necessary institutional infrastructure including warehousing facilities, independent clearing house in addition to modern trading ring. The KCE for example, lacks basic facilities to disseminate the trading information. The exchange has only a couple of small office rooms and a poorly maintained trading ring which seem to have never been utilised. Trading system: Most of the exchanges till date have open outcry system. Of the sample of six exchanges visited, only COFEI has introduced electronic trading system. The FMC has been emphasising the need for automation and on-line trading system for ensuring better transparency and fairness in trading practices. It has been observed that less than 10 per cent of members are only actively trading in these exchanges. Volume of trade has been consistently declining. In some exchanges, e g, KCE, the market is non-existent. An active and vibrant market is necessary for introducing electronic trading system. Steps have to be initiated for creating market and making the exchange financially sound for investing in automation and on-line trading. It has been noticed that after introducing computerised trading in COFEI, trade volume dropped substantially leaving a large financial burden on the exchange. Moreover, majority of trading members in some of the exchanges are not educated enough to handle English language and to operate computer. For example, most of the members of the Chamber of Commerce, Hapur said to have no working knowledge of English without which computerised trading is difficult. Therefore, the priority of FMC and exchanges should be the creation of a better environment for active trading. Computerisation can be second step once a vibrant market is in place. Broking community: Although a large number of members exist in the records of exchanges, most of them shy away from trading due to the fact that the business is not very profitable. It is essential to attract large-scale broking firms who have diversified into stock broking and other related businesses. Regulation including setting standards for brokers, imposing capital adequacy norms, qualification criterion, etc, would become more meaningful when more and more active traders are attracted to the business. Existence of unofficial market: The grey/black market which existed outside the exchange premises during the ban on futures trading for over 30 years still continues to exist even inside the exchanges. It has been widely accepted and admitted by some of the CEOs/secretaries of exchanges that at least 25-30 per cent trade in the exchanges go unreported. The unofficial market operating outside the official exchange is much larger. These unofficial traders find the margin, stamp duty and income tax requirements least encouraging to come to the official contract channels. Multiplicity of exchanges: Currently 20 exchanges are operational of which three are specifically for conducting NTSD contracts and the remaining are in the trade of nearly 30 commodity items. Recently, five new exchanges have been approved and three of them are exclusively for futures contract in sugar. Many of these exchanges are set up as specialised ones for trading in one or a few commodities. The international experience however shows that exchanges are only to provide a platform for trade in many commodities and different forms of contracts. The Chicago Mercantile Exchange started as an agricultural exchange, and now largely relies on trade in financial futures; while the New York Mercantile Exchange, now the world’s largest energy exchange, once traded butter and potatoes. If an exchange provides a well organised trading system for certain commodities, with well-developed procedures, a good intermediary structure, and a sound clearing house, it can build on these strengths to introduce new products and to attract large number of traders which would eventually make the exchange more broad-based and financially sound. Controlled market: Price variability is an essential precondition for futures markets. Any distortion in the market mechanism where free play of supply and demand forces for commodities determines prices will dilute the process of natural variability of prices and potential risk. It is imperative that for a vibrant futures market commodity pricing must be left to market forces, without monopolistic or undue government control. However, in India many of the commodities in which futures trading is allowed have been still protected under ECA 1955. There are also commodity-based specialised government agencies like Cotton Corporation of India, NAFED, Jute Corporation of India, etc, which seek to control supplies of some farm products. Regulation: The government has two important roles to play – an oversight role by which the government disciplining those who try to manipulate the markets for their own benefit, and ensuring the sanctity of contracts; and secondly, an enabling role by which the government providing the necessary legal and regulatory framework for the smooth functioning of the system. The regulatory intervention should be most active at the time of the establishment of the exchange and of contracts. If the contracts are well formulated, and delivery modalities provide effective line of defence against attempts at manipulation, government has to only act as a watchdog intervening only when necessary. The goal of the regulatory agency is not only to regulate but also to inculcate the culture of self-regulation among the participants. This in turn, over a period of time, will give way for more self-regulation supported by the advisory role of state regulation. Promotion of the use of derivatives: With the increasing technological sophistication of trading methods, better transparency and guarantee of trade in futures, more institutional players like mutual funds, foreign institutional investors should be allowed to trade in recognised commodity exchanges. The exchanges under the guidance of the FMC must undertake publicity and mass awareness programmes for the promotion of this segment. For this purpose it would be beneficial for FMC to have a broad based functional alliance with its counterpart in stock markets. Modification of income tax provisions and rationalisation of stamp duty: In the past, speculative and non-speculative businesses were treated equally for taxation so far as right to set off or carry forward of loss was concerned. As a result, it was possible to set off speculative losses against speculative profits. Current tax rule however does not allow for setting off or carrying forward of speculative losses against regular business income. It does not treat losses on futures transaction as a normal business expense. The futures trading industry has been demanding amendments in the tax law for the promotion of futures trading activities. Similarly, the stamp duty provisions on futures trading make the transaction cost higher and moreover, the rates vary from one state to the other. While states like Gujarat, Madhya Pradesh, Kerala do not impose stamp duty on futures trading, some other states like Maharashtra imposes stamp duty on futures trading of certain commodity items. Conclusions Commodity derivatives have a crucial role to play in the price risk management process especially in agriculture dominated economy. Derivatives like forwards, futures, options, swaps, etc, are extensively used in many developed as well as developing countries in the world. However, they have been utilised in a very limited scale in India. The production, supply and distribution of many agricultural commodities are controlled by the government and only forwards and futures trading are permitted in certain commodity items. The present study is an investigation into the present status, growth constraints and developmental policy alternatives for derivative markets in agricultural commodities in India. The study has surveyed the recognised exchanges and their organisational, trading and the regulatory set up for futures trading. In the light of visit to six exchanges the study identified the problems and prospects of the futures markets and outlined various policy alternatives for revival of agricultural commodity futures in India. A review of the nature of institutional and policy level constraints facing this segment calls for more focused and pragmatic approach from government, the regulator and the exchanges for making the agricultural futures markets a vibrant segment for risk management. [This paper is drawn on the report entitled ‘Derivatives and Price Risk Management: A Study of Agricultural Commodity Futures in India’ which is a broader study carried out by the author with financial support from Indian Institute of Management, Lucknow. References Forward Markets Commission, Ministry of Food and Consumer Affairs, Government of India (2000): Forward Trading and Forward Markets Commission. Ministry of Food and Consumer Affairs, Government of India (1999): Futures Trading, Commodity Exchanges and Forward Markets Commission, New Delhi. Sahadevan, K G (2002a): ‘Risk Management in Agricultural Commodity Markets: A Study of Some Selected Commodity Futures’, Working Paper Series: 2002- 07, Indian Institute of Management, Lucknow. (2002b): ‘Derivatives and Risk Management: A Study of Agricultural Commodity Futures in India’, A Research Project Report, Indian Institute of Management, Lucknow. United Nations Conference on Trade and Development (1995): ‘Feasibility Study on a Worldwide Pepper Futures Contract’, (UNCTAD/COM/64). – (1998): ‘A survey of Commodity Risk Management Instruments’, (UNCTAD/COM/15/Rev2). Youssef, Frida (2000): ‘Integrated Report on Commodity Exchanges and Forward Markets Commission’, Report of the World Bank Project for the Improvement of the Commodities Futures Markets in India.