As much as the absolute value of the products produced by the farmers is attained, government’s financial burden concerning the policies to support the agriculture sector lessens.
In order to avoid risk, businessmen buy the goods forward in accordance with the amount of product and delivery date.
Producing exporters in industrial sectors such as food or textile get the opportunity to receive their pledges on time with the requested price and quality by having futures contract.
Commodity exchanges make a contribution to the formation real and fair prices suitable to the benefits of consumers by partially redeeming price differentials, in terms of time and region, of very commonly consumed agrarian products.
Exchanges create a platform for producers where they have the chance to present their goods to numerous buyers, and hence selling their products safely with effective price of current conditions.
Only the registered members of commodity exchanges can enter the exchange and make transactions. The only exception of this limitation is agrarian producers. Therefore, the majority of the selling members of an exchange consist of agrarian producers.
Disagreements and incompatibilities among members are solved by Arbitration Boards.