International Rice Research Institute (IRRI) based out of Philippines today has renewed its call for establishment of a rice index and commodity exchange in Asia. IRRI director, Robert Zeiglar commented that this would help stabilize rice trade.
This well regulated rice index and commodity exchange market will benefit society and provide farmers an opportunity to increase their incomes. A well designed future market will allow farmers to sell produce whenever the prices are favorable, commented Zeiglar.
Arsenio Balisacan, Socioeconomic planning secretary has commented that Philippines has shown interest in the idea. The future market for rice index and commodity exchange will do great benefit for Philippines as well as for other countries in order to stabilize prices.
Initially IRRI thought of regional rice futures market in 2010, but Zeiglar commented that Asian countries were tepid to the idea and Singapore was requested to host rice futures and spot exchange including actual buying or selling of rice for immediate delivery.
As per Zeiglar, people fear futures market because they equate it with speculators and obsence profits; hence a mechanism is necessary to minimize speculation. As per current data, Asian rice economy is estimated at US$160 billion.
International Rice Research Institute(IRRI) aims to minimize the impact of production of the Rice index and Commodity Exchange through management of Smart Crop onto the environment which ultimately optimizes certain inputs such as fertilizers and reduce Green house Gas that is emitted from the Rice Fields.