Exchange commodity, the world’s solution to the problems of the agricultural field

Economics expert Pourabbasi said that the world has come up with solutions to the problems in terms of agricultural commodity prices, including the World Trade Organization, the World Grain & Grocery Organization.

When the market is competitive, the market mechanism determines what the price of wheat should be. The predicted mechanism in this field is to submit agricultural products including wheat in exchange of a commodity, which in addition to bringing price of wheat to its actual rate, it takes the financial burden off the government.

The supply of agricultural products in exchange of commodity, on one hand, private sector enters and on the other hand, chains are formed and the government instead of involving itself with all the farmers takes actions to create policies in the field of agricultural products, especially wheat.

Exchange of goods, the pricing of products in the world

He said: In our country, unfortunately, the government instead of the aforementioned work, pays compensation for the cost of production, that is why the government is always giving subsidies to agriculture, especially wheat farmers, whilst as the basis for pricing is commodity exchanges in the whole world, our country must also move forward, because in addition to solving the problems in this field, by the supply of agricultural products on the stock exchange, we will witness transparency in the pricing of products, as well as the realization of the price of products, especially wheat.

Stock markets, the only way to solve the problems of agriculture

This professor, emphasizing that the barriers for wheat entry to Commodity should be removed for realizing the price of this product and taking the burden off the government, said that the State has considered 8145 billion Tomans in the budget this year for purchasing wheat, which this figure was 5000 billion Tomans last year. Therefore our procedure for pricing the rates of wheat is not correct and we should move forward like the other countries in the world by submitting our agricultural products especially wheat to the commodity exchange and taking advantage of this for the state and farmers.