Feasibility of and steps towards the creation of a commodity exchange in Bhutan

Lamon Rutten () and Johann Rusche

MPRA Paper from University Library of Munich, Germany

Abstract: The report assesses whether a commodity exchange can help Bhutanese farmers, and if so, whether conditions in Bhutan allow for the creation of a successful exchange. It concludes that an exchange will reduce farmers' price risk exposure and raise their realized prices, in particular for potatoes, and recommends that a simple exchange mechanism be built around an electronic warehouse receipt system. As the size of Bhutan's economy makes a lean business model necesary for the financial viability of the commodity exchange, it is proposed that the leverages the technology and infrastructure of the Royal Stock Exchange of Bhutan.

Keywords: commodity exchange; electronic warehouse receipts; agricultural risk management; Bhutan. (search for similar items in EconPapers)
JEL-codes: G23 Q13 Q14 Q18 (search for similar items in EconPapers)
Date: 2015-06-15
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