Munich Personal RePEc Archive

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

Rutten, Lamon and Rusche, Johann (2015): Feasibility of and steps towards the creation of a commodity exchange in Bhutan.

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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.

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