The effect of Agricultural Commodity Exchangeactivity in Iran rural development

Since a few centuries ego accelerated development of industry and technology all around the worldhas revealed much more the rural areas’ lagging behind on the course of development. Villagers generallymake less money than city dwellers do and they enjoy an insignificant amount of social services thereforethey are regarded poorer and more vulnerable. One consequence is they are forced to move from ruralareas to cities. This lagging-behind situation results from the geographic dispersion of villages, the lack ofcost-effectiveness in terms of social services provision, the unprofessionalism (and consequently lowproductivity) in the agricultural sector, the limitedness of land resources (compared to population growth)and the inappropriate management of authorities. Therefore an economic rural development scheme isrequired to eradicate or at least mitigate severe poverty of rural areas, to improve quality level ofvillagers’ life, to create more employment opportunities for them and to help them boost theirproductivity. Agricultural Commodity Exchange as a competition market is an institution thatcomplements and enhances the traditional market in rural areas. Problems and obstacles villagers asagricultural producers are faced to include lack of transparency in market information, uncertainty offuture prices of products, inefficiency of distribution of agricultural products, sharp fluctuations of price.Commodity Exchanges have been established in order to solve these problems. main advantages ofagricultural commodity Exchanges are reduction of the starting stock prices risk, growth of exports,reducing government intervention in the agricultural sector, purposefulness support policies, producerfinancing, helping rural traditional market reform, the development of the agricultural sector by theprivate sectors’ assistances, reduce transaction costs and improve the market for agricultural products,changing cropping pattern, preventing sharp price fluctuations and focus onproducers and consumers.

کلیدواژه ها:

Agricultural Commodity Exchange ، Rural ، development ، Iran