14.07.2021 Ankara
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) President Rifat Hisarcıklıoğlu stated that the Agricultural Product Price Indices of the Turkish Commodity Exchange (TÜRİB) will contribute to the formation of reference prices throughout the country, adding, “Now we will look to the TÜRİB index, not London, Chicago for the price of wheat.”
TÜRİB Agricultural
Product Indices launch was held with the participation of Minister of
Agriculture and Forestry Dr. Bekir Pakdemirli and President of the Union of
Chambers and Commodity Exchanges of Turkey (TOBB) M. Rifat Hisarcıklıoğlu.
Hisarcıklıoğlu said in
his speech here that in 2019, TÜRİB carried out the operating permit delivery
ceremony, and since then TÜRİB has achieved good works.
Noting that Minister
Pakdemirli has worked hard to reach the developed agricultural market,
Hisarcıklıoğlu said, “Thanks to Minister Bekir dynamism, reforms in our agricultural
market not been made for 10 years are being implemented one after the other.”
Hisarcıklıoğlu stated
that countries that properly protect their agricultural commodities, maintain
them with healthy storage systems and maintain the balance of supply and demand
are less affected by shocks.
Hisarcıklıoğlu said
that for the last 10 years, a two-stage transformation process has been
underway in the agricultural market.
“The first leg of this
transformation was licensed storage. We have reached a very good point in this
regard under the leadership of our trading exchanges and the Land Crops Office
(TMO). TÜRİB, the second pillar of the developed agricultural market, started
its operations 2 years ago with its operation permit. In these 2 years, the
agricultural market brought together its stakeholders, namely farmers, traders,
industrialists, investors, banks and TMO, to a common point. At the end of
2019, the number of investors exceeded 90,000, up from 50,000. TÜRİB
contributed to the formation of healthy prices in this process.”
Emphasizing that the
function of the Electronic Product Bill (ELÜS) in the farmer's access to
finance is becoming more important every day, the farmer provides financing by
guaranteeing the ELÜS and has the chance to sell his goods at value,
Hisarcıklıoğlu stated that they realized the goals they set out one by one when
starting with TÜRİB.
- “We will now look to TÜRİB for the price of wheat”
“These indices will
allow us to monitor the product market in a transparent and simple way. It will
contribute to the formation of reference prices throughout the country. Now we
will look to the TÜRİB index, not London, Chicago for the price of wheat. These
indices will be the pulse of agriculture, the compass of the farmer and the
investor,” he said.
Hisarcıklıoğlu stated
that everyone can watch agricultural activity on-screen. “There will be
commentators who say wheat is up 2 percent and corn is down 1 percent. The
farmer will see his way, and he won't sell his property for nothing. We will be
able to quickly identify supply and demand imbalances and develop the right
policies.”
Hisarcıklıoğlu said
that they can clearly see the effects of TMO's market interventions, so that
they can also support the TMO's positioning as a modern market maker in the
cereal market.
At the same time,
Hisarcıklıoğlu stated that they can compare the performance of agricultural
products in Turkey with other commodities. “We’ll be able to ask, ‘What is the
price of cereals in the world, what happened in Turkey?’ We'll be able to
compare comfortably. We will be able to see how much of the price changes in
Turkey are due to global markets and how much is due to us.”
- “Investment in agricultural product instead of foreign
currency and gold”
Hisarcıklıoğlu pointed
out that these indices can also be converted into investment vehicles in the
future, and stated that anyone can invest in agricultural products when the
necessary works are completed.
Citizens who do not
want to do deal with term deposits can invest in agricultural products instead
of foreign currency and gold, Hisarciklıoğlu said:
“The indices created
will be published on TÜRİB website and Matrix and Forex data terminals. With
futures contracts to be implemented in the coming years, market players will be
able to reduce their risks. Thus, the price will be healthier and the farmer
will see the way ahead more comfortably and plan accordingly.”
- Minister of Agriculture and Forestry Bekir Pakdemirli
Agriculture and
Forestry Minister Bekir Pakdemirli said that with the increase in agricultural
product trade, product exchanges have started to develop, and with the
establishment of TÜRİB in 2017, the agricultural products trade has reached a
more effective position.
Pakdemirli stated that
the product exchange and licensed storage are inseparable parts, “The tighter
and more harmonious these two structures work, the stronger the guarantee of
production and earnings will increase.”
Minister Pakdemirli
stated that thanks to licensed storage, the manufacturer has saved the storage
costs and kept its products in modern warehouses safely, insured and healthy.
Pakdemirli stated that
the manufacturer was able to deliver crop to a wider range of buyers
electronically on the product exchange with the product bill received in exchange
for the product delivered to the licensed warehouse, and said that thanks to
cooperation between the Ministry of Commerce and TOBB, they support the
producers and made efforts to be more involved in this system and to have the
products traded on the product exchange in greater quantities.
Pakdemirli stated that
TÜRİB is a structure where agricultural products are recorded, traded, their
movements are monitored and controlled, he noted the importance of the
producer's access and integration to the financial system.
Pakdemirli stated that
the manufacturer was given ELÜS when he delivered his product to the licensed
warehouse, and said that with this document, they can sell their products at
any time.
Pakdemirli stated that
a product of the same quality, which is bought and sold by the Land Crops
Office (TMO), is traded with different ISIN codes on the Product Specialized
Exchange, which prevents the markets from gaining depth.
Pakdemirli stated that
product price indices will add a different dimension to the agricultural
products market, these indices are designed to measure the price performance of
single or group agricultural products using ELÜS transactions.
Pakdemirli stressed
that the importance of licensed storage and Product Specialized Exchange will
increase in the future. Pakdemirli stated that the development of agricultural
products trade is due to the strengthening of licensed storage and product
specialized exchange, and he believes that the application of Product Price
Indices will contribute greatly to the increase of the producer's revenues, the
growth of investments and the strengthening of the sector.
After the speeches, the
gong was rang by Minister Pakdemirli, TOBB President Hisarcıklıoğlu and
protocol members.