Viability of Commodity Exchange in Bhutan: Assessing Challenges and Benefits

Amir Gurung; Phuntsho Choden; S. Daly; K.B Singh

doi:10.32535/ijafap.v4i1.1028

Viability of Commodity Exchange in Bhutan: Assessing Challenges and Benefits

Amir Gurung, Phuntsho Choden, S. Daly, K.B Singh

Abstract

This paper investigates the viability of commodity exchange in Bhutan and identifies its essential pre-conditions. Challenges and benefits are enumerated using exploratory and qualitative research with open-ended and semi-structured interviews. Bhutan represents an emerging South-Central Asian country successful emergence of which into the global arena in the last fifty years could serve as an example for other small and developing markets. The results of this study put challenges for farmers in two categories, before and after harvest. All post-harvest challenges can be addressed through an established commodity exchange and its three pre-conditions are essential to the development of commodity exchange in Bhutan.

Full Text:

PDF

References

Basu, G. K. (1998). Bhutan: The political economy of development. New Delhi: South Asian Publishers.

Belozertsev, A., Rutten, L., & Hollinger, F. (2011). Commodity exchanges in Europe and Central Asia: A means for management of price risk. Rome: Food and Agriculture Organization.

Dehoop, S. S. (2019). Leadership effective, work ethic, and collective relation on the organizational commitment (Empirical study at Junior High Schools in Minahasa Regency). Asia Pacific Journal of Management and Education, 2(1), 1-9.

Department of Agricultural Marketing & Cooperatives (DAMC). (n.d.). About us: About DAMC. Retrieved September 22, 2017, from Department of Agricultural Marketing & Cooperatives: http://www.agrimarket.gov.bt/public/index/about/id/1

Department of Agricultural Marketing & Cooperatives (DAMC). (2016). Commodity marketing through auction yards. Thimphu: Department of Agricultural Marketing & Cooperatives.

Dewi, I. C., Adhianata, H., & Suwignyo, A. (2018). Factors that encourage Surabayaâ€™s citizen in reservation through offline travel agent (travel bureau) (Case study on PT Aneka Tours and Travel Services Surabaya). International Journal of Tourism and Hospitality in Asia Pasific, 1(1), 20-24.

Economy Watch. (2010). Bhutan trade, exports and imports. Retrieved http://www.economywatch.com/world_economy/bhutan/export-import.html

Emeni, F. K. (2010). Basis for the development of commodity exchange in Nigeria. The Nigerian Journal of Research and Production, 17(1), 1-10.

Fox, N. (2009). Using interviews in a research project. Nottingham/ Sheffield: The NIHR RDS for the East Midlands/Yorkshire & the Humber.

Rashid, S., Nelson, A. W., & Garcia, P.(2010). Purpose and potential for commodity exchanges in African economies. Paper presented at International Food Policy Research Institute Discussion Paper 01035. Retrieved from https://core.ac.uk/download/pdf/6237677.pdf

Gabre-Madhin, E. Z., & Goggin (2005). Does Ethiopia need a commodity exchange?: An integrated approach to market development. Addis Ababa: Ethopian Development Research Institute.

Groenewald, T. (2004). A phenomenological research design illustrated. International Journal of Qualitative Methods, 3(1), 42-55.

Hassan, M. K. (2000). Trade relations with SAARC countries and trade policies of Bangladesh. Journal of Economic Cooperation, 21(3), 99-151.

Hilferding, R. (1981). Finance capital: A study of the latest phase of capitalist development (M. Watnick & S. Gordon, Trans.). Retrieved from https://www.marxists.org/archive/hilferding/1910/finkap/index.htm

Indian Trade Portal. (2014). Agreement on trade, commerce and transit. Retrieved from http://www.indiantradeportal.in/vs.jsp?lang=1&id=0,1,63,81

Kaplinsky, R., & Morris, M. (2000). A handbook for value chain research (Vol. 113). University of Sussex, Institute of Development Studies.

Kiriga, B., Njenga, M., Laibuni, N., Ikiara, M., & Omiti, J. (2012). Is there a need for east African commodity exchange?. Nairobi: Ministry of agriculture.

Lester, S. (1999). An introduction to phenomenological research. Retrieved from www.rgs.org/nr/rdonlyres/f50603e0-41af.../seaweedphenomenologyresearch.pdf

Maximchook, N. (2013). Developing commodity exchange trading in the single economic space. In E. Vinokurov (Ed.), EDB Eurasian integration yearbook 2013 (p. 397). Almaty: Eurasian Development Bank.

Ministry of Finance (MOF). (2014). Bhutan trade statistics 2014. Thimphu: Ministry of Finance. Retrieved from http://www.mof.gov.bt/wp-content/uploads/2014/08/BTS_2014.pdf

Ministry of Agriculture and Forests. (2015). Agriculture statistics 2015. Retrieved from http://www.moaf.gov.bt/download/Statisitcs/Department-of-Agriculture/Agriculture-statistics-2015.pdf

Mukami, K. (2014). How commodity exchanges can help Africaâ€™s fragmented farmers. Retrieved from http://www.nortonrosefulbright.com/knowledge/publications/120849/how-commodity-exchanges-can-help-africas-fragmented-farmers

Nigerian Pilot. (2016). Diversifying our economy through commodity trading in the Agricultural sector. Retrieved from http://nigerianpilot.com/diversifying-economy-commodity-trading-agricultural-sector/

Rashid, S. (2015). Commodity exchange and market development: What have we learned? Milan: International Food Policy Research Institute.

Sarkar, R., & Ray , I. (2006). Two nineteenth century trade routes in the Eastern Himalayas: The Bhutanese trade with Tibet and Bengal. Journal of Bhutan Studies, 15, 56-83.

Seeger, C. (2004). Roadmap: Commodity futures markets development in India 2005 and forward. Retrieved May 30, 2017, from http://www.fmi- inc.net/news/pdfs/Roadmap.pdf

Sehgal, S. (2012). Price discovery in Indian agricultural commodity markets. International Journal of Accounting and Financial Reporting, 2(2), 34-54.

Surana, S. (2015). Farmersâ€™ participation on commodity exchanges: A concept note. Retrieved https://www.linkedin.com/pulse/farmers-participation-commodity-exchanges-concept-note-surana-cfa

Team YS. (2011). Commodity exchange helps in transforming farmers from producers to marketers. Retrieved from https://yourstory.com/2011/11/commodity-exchange-helps-in-transforming-farmers-from-producers-to-marketers/

The Herald. (2012). Benefits of a commodity exchange. Retrieved from http://www.herald.co.zw/benefits-of-a-commodities-exchange/

Tobgay, S. (2005). Agriculture diversification in Bhutan. Thimphu: Ministry of Agriculture.

UNCTAD. (2009). Development impacts of commodity exchanges in emerging markets. Geneva: United Nations.

van der Mensbrugghe, D., Osorio-Rodarte, I., Burns, A., & Baffes, J. (2009). How to feed the world in 2050: Macroeconomic environment, commodity markets. Retrieved from https://mpra.ub.uni-muenchen.de/19061/

Worku, M. A. (2016). The contribution of Ethiopia commodity exchange for promoting exports of agricultural products. Journal of Economics and Sustainable Development, 7(9), 81-90.

DOI: https://doi.org/10.32535/ijafap.v4i1.1028