The impact of economic agricultural commodityexchange institutions activity in rural development

Villagers generally make less money than city dwellers do and they enjoy an insignificant amount ofsocial services therefore they are regarded poorer and more vulnerable. One consequence is they areforced to move from rural areas to cities. This lagging-behind situation results from the geographicdispersion of villages, the lack of cost-effectiveness in terms of social services provision, theunprofessionalism (and consequently low productivity) in the agricultural sector, the limitedness of landresources (compared to population growth) and the inappropriate management of authorities. Thereforean economic rural development scheme is required to eradicate or at least mitigate severe poverty of ruralareas, to improve quality level of villagers’ life, to create more employment opportunities for them and tohelp them boost their productivity. Agricultural Commodity Exchange as acompetition market is aninstitution that complements and enhances the traditional market in rural areas. Problems and obstaclesvillagers as agricultural producers are faced to include lack of transparency in market information,uncertainty of future prices of products, inefficiency of distribution of agricultural products, sharpfluctuations of price. Commodity Exchanges have been established in order to solve theseproblems. mainadvantages of agricultural commodity Exchanges are reduction of the starting stock prices risk, growth ofexports, reducing government intervention in the agricultural sector, purposefulness supportpolicies,producer financing, helping rural traditional market reform, the development of the agriculturalsector by the private sectors’ assistances, reduce transaction costs and improve the market for agriculturalproducts,changing cropping pattern, preventing sharp price fluctuations and focus on producers andconsumers.

کلیدواژه ها:

Institutions Activity ، Agricultural Commodity Exchange ، Economic ، Rural