Kyrgyz farmers to be able to trade on commodity exchange

Bishkek, Dec. 3, 2020. /Kabar/. The Ministry of Agriculture, Food Industry and Land Reclamation of the Kyrgyz Republic signed a Cooperation Agreement with Kyrgyz Stock Exchange CJSC in order to support farmers and provide opportunities for products to enter the world markets.

According to the ministry’s press service, the agreement provides for the creation of a list of exchange commodities, assistance to domestic producers to enter the commodity markets of the EAEU (Eurasian Economic Union) member states, and the identification of promising areas.

"An important advantage for the farmers of the republic is access to world markets and the opportunity to trade not only goods but also futures (goods with future delivery). At the same time, each futures contract at the commodity exchange is both a purchase for one side and a sale for the other side. In addition, large customers can find the necessary volumes and be insured against price volatility through hedging (insurance, guarantee),” the report says.

During the signing of the agreement, President of the Kyrgyz Stock Exchange Medet Nazaraliyev noted that thanks to the document, Kyrgyz farmers will be able to show profitable tools, convenience and advantages of the commodity exchange, which is designed to form an organized commodity market and improve the efficiency of domestic and foreign trade turnover in Kyrgyzstan.

Agriculture Minister Tilek Toktogaziyev supported the importance of developing electronic exchange trading and assured the ministry will actively participate in assisting farmers to enter the world markets.

"An important task of the ministry is to provide state support to farmers and create convenient conditions, and it is necessary to use various tools - one of them is the commodity exchange. All over the world, stock exchanges are the main platform for the sale of agricultural products and it is time for us to master this mechanism," he said.

The world market of agricultural products occupies the lion's share (55%) of the volume of all exchange trade. Corn, sugar, wheat are most often put up for sale.