NECESSITY OF AGRICULTURAL COMMODITY DERIVATIVES MARKET FOR OVERCOMING THE PROBLEMS IN THE AGRICULTURAL SUPPLY CHAIN OF BANGLADESH: A REVIEW AND WAY FORWARD

Abstract

This study attempts to provide an in depth review on the agricultural commodity derivatives and its necessity in the context of Bangladesh and explains how an inception of the market would be beneficial for mitigating the problems of agricultural supply chain of the country. Through an extensive study of secondary sources of data it shows that the agricultural supply chain of the country is highly dominated by the entities prevailing between the farmers and the final consumers. Besides, increased price of inputs of agricultural production is also an important factor of concern for the country. In this circumstance, in light of the potential benefits of an agricultural commodity derivatives market, a detailed study is required to determine whether the establishment of such a market would be a viable remedy for the problems facing the agricultural supply chain in Bangladesh.