19 February 2019
The first India-Myanmar Knowledge sharing seminar on agri-commodity exchanges was held in Nay Pyi Taw on Tuesday.
This seminar was organized with the support of Securities Exchange Commission of Myanmar, Securities and Exchanges Board of India, Embassy of India, National commodities and Derivatives Exchange of India and Meridian Group. A commodities exchange is a legal entity that determines and enforces rules and procedures for the trading standardized commodity contracts and related investment products.
Commodities exchange also refers to the physical center where trading takes place. The benefits of spot and future commodities exchanges and many misconceptions about commodity exchanges were cleared during the seminar.
Vice Chairman, UMFCCI, Ye Min Aung said “The representatives from India come here to share information and experience on Agriculture Commodities Exchanges that will soon be introduced in Myanmar. As Myanmar is agri-based country, having good prices, market, trade system and pre-trading system for agricultural production are vital for us. We need to learn the lessons in practicing Agriculture Commodities Exchanges from countries that are already using the Agriculture Commodities Exchanges. And it takes time to implement the Agriculture Commodities exchanges to be suitable with the country’s practices.”
India has made giant strides in setting up well-functioning spot and future commodity exchanges. Myanmar has the opportunity to take advantage of India’s unique commodity exchange ecosystem which is directly relevant and suitable to its farmers.
Chief General Manager, SEBI, Shashi Kumar said “The main thing is to ensure that the market infrastructure is proper, the trading which happens there is very regulated that are not failure which happens in settlement. So when the confidence of the ecosystem is believed, I’m sure this will help in much bigger volume getting traded and it will help the whole ecosystem in terms of Myanmar’s export also especially on the agri side. It will be very helpful.”
Myanmar has always been self-sufficient in food production and has been a large exporter of agricultural commodities though, its output is far below its true potential. Inability to access adequate and timely pre-harvest credit and financing are some of several factors that have held back the growth of Myanmar’s agriculture.