Multi Commodity Exchange (MCX), the largest commodity trading platform in India and the seventh-largest in the world, has signed an agreement with the Chittagong Stock Exchange (CSE) to provide the port-city bourse with consultancy to build the country’s maiden commodity exchange.
A commodity exchange creates a marketplace for commodities trading under the set rules and regulations and promotes the right grades of commodities as well, especially the agricultural ones. The commodity exchange will open a new investment frontier for investors.
The Business Standard spoke to noted economist Abu Ahmed, Honorary Professor, Department of Economics at the University of Dhaka, to shed light on the country’s investment environment, including the country’s first-ever commodity market.
The country is going to launch its first commodity exchange, and the government has already signed a contract with an Indian company to provide consultancy for the project? What is your take on the initiative?
The Bangladesh Securities and Exchange Commission (BSEC) has permitted the CSE to launch the commodity market a year back. It is, undoubtedly, a good initiative to introduce a commodity market for investment.
As Bangladesh does not produce that many items like developed countries, we should start the market with a few items. But there are many things to make the market functional like commodity standardisation and warehouses for keeping the commodity.
New investments will come when the market is launched, and our farmers will benefit from the market. It is a positive move because most countries…