Price and income instabilities consist the two basic elements of agrarian product markets. The instability of price is caused both by demand and supply. Since agriculture is a sector that depend on the climate, generally the prices stay on a certain level during the time of harvest; however the prices go up until the new products are obtained. Even though the fluctuating pricing is prevented concerning the storable products, it is not possible for the non-storables.
The most contemporary method Is the activation of futures exchange to lessen the financial burden on the government and to provide a platform of agrarian products in free market. Thereby, agrarian products will be able to find their actual values, a better-qualified production will be reinforced through the standardization of products at exchanges, future transaction will consequently enable the producers’ product line and will determine the aims of tradesmenand agrarian manufacturers more fruitfully.
One of the crucial steps to be taken to enhance the exchange culture is the transition to specialized exchange formatted on product base.
Especially futures exchange has the utmost importance for production planning, stock assessment and benefit from risk elements in a more rational manner. Most importantly, futures exchange partakes in establishing a healthier financial, consequently a taxation system.
