Union of Chambers and Commodity Exchanges of Turkey

“Now we will look to the TÜRİB index, not London, Chicago for the price of wheat”

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.

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