Farmers in Kyrgyzstan can sell their products on the Commodity Exchange. The Ministry of Agriculture of Kyrgyzstan reports.
In order to support farmers and create opportunities for them to enter world markets, an agreement on cooperation was signed between the Ministry of Agriculture and the Kyrgyz Stock Exchange CJSC.
«Thanks to the agreement, we hope that we will be able to show profitable tools, convenience and advantages of the Commodity Exchange, which is designed to form an organized commodity market and increase the efficiency of the country’s internal and external trade. Modern requirements and capabilities of digital technologies allow us to offer new tools for sale of manufactured products in our country,» the president of the exchange Medet Nazaraliev said.
The Agriculture Minister Tilek Toktogaziev supported the importance of developing electronic exchange trading and confirmed the ministry’s active participation in facilitating farmers’ entry into the world markets.
An important advantage for farmers is access to world markets and the ability to trade not only commodities, but also futures (commodities with future delivery). Every futures contract on the Commodity Exchange is both a purchase for one side and a sale for the other.
Large customers can find the required volumes and insure against price volatility through hedging (insurance, guarantee). One of the advantages of exchange transactions is that they do not require notarization. Trading operations on the exchange are carried out through an electronic trading system in real time. Trading can be managed via the Internet from any place in the world.
