President’s Message About Stock-Exchanges

        A-  To hit the big time Crop Stock-Exchange Project, Turkish Grain Board’s grain silos rent for
              the Stock-Exchanges for a long period and insignificant price.

       In our country, there are no Futures Market for grains for this reason the transaction volume is shallow.

 In the Futures  Market, the growers have a chance to know price of crop before seedling. For this reason,
this event serve as  a plan for growers to choose the variety for growing. All of the above situation  orientate
the necessity of Agricultural Plan.

 Futures Market is a system, which provides the advantage for the Manufacturer, to obtain uniform grain and to make cost adjustment.

 At the beginning of the Futures Market, the licensed depot system must be set up.

 In the licensed depot system, crops must be classified according to its quality and variety  and then store in the silos The bill of receipts or depots receipts must be arranged, so  for instead of crops trade, relevant receipts materialized at  Futures Market.

 Polatlı Grain Exchange is quite decided about construction and founding of  Futures Market. For this purpose we belive that, Turkish Grain Board Polatlı Branch Office Silos which are about 20,000 tone capacity, must be rented for long period and insignificant price.

 B-    To Stop the Stock-Exchange Inflation in Turkey

          According to Art No: 5590 ; membership registration and agricultural crops trade, registration necessity in
         addition  to  mentioned  above, seemingly Ministy of Finance want to prevent tax  smuggling,  unvalued the
         quality,   the   function  and   the  structure  of   the  Stock  Exchanges,  to  decrease  the stoppage  for the 
         Stock  Exchange ,  result  in  the  Stock Exchange Inflation.

The Stock Exchanges, which  Modern and  Office Stock Exchange   are evaluate at the same scale of  balance.

In the Modern Stock Exchange, the quality and spects of the crops determine at the laboratory then  sent to auction room. That place is the most suitable enviroment for buyers and sellers of grain under free market conditions supported with recent information and comminication technologies. But the Office Registration Exchange is registrate and the record of bill and receipts. They can’t serve as a  free market conditions.   

Whether the law of 5590 or Ministry of  Finance Joint Liabilitly Regulations don’t separate  the Modern Stock Exchange  and Office Registration Stock Exchange.

Only in the Modern Trade Stock Exchange follow and realized stoppage.

In our country 22 million tone cerealsproduces a year and  only 15% of them are transact at the Turkey Grain Board and 15 % of them are transact at the Stock Exchanges, and the residue is out of the registration.

 C-    The Stoppage must be reduced to ‘0’ for the Agricultural Products Which are realized on Floor Trading at the Modern Trade Exchange

 To increase transaction volume of Modern Stock Exchange, the stoppage must be reduced to ‘0’ by this way  their development supported.

       Benefits :  

At the Modern Stock Exchange after the selling operations, the quantity and the quality of crop, the identity of the producer (farmer),  unit price, and the condition of selling must be recorded during registration. These records provides the best data for the scientific research, to determine the price index, to announce the market volatility for interested people and also to control the taxes.

To provide the get income and corporation tax, VAT taxes from agricultural crops. At the beginning source to end product.

 For example :  

To provide the collection of taxes from all the stages from wheat to end product. This chain include farmer, exchanger, miller, bread and pasta maker and so on. For this way instead of uncollected  stoppage taxes (because it is out of registration),  income and corporatian tax and aldo VAT(Value added tax) may be realized.

During to buy agricultural products, the unfair competition may be stopped by the products solding of auction room  at the Stock Exchange. The imbalance of the earnings between the traders one of them buy his necessity from auction room and the other buy his necessity from unregistrated crop, must be balanced.

 D-    Direct Income Support (DIS) must give to crops instead of land

         DIS system, which is paid before and continue, must change. Now DIS paid according to land, without
         the crop production occurs or not.

In may opinion this system harmful for the our agriculture. Because this system is not evaluate the production yield and quality. If the DIS give to crop base, the quality and yield may be increase.  

In addition to my advice system, the bill of receipts entrusted with selling of crops in the Modern Stock Exchange must be desired by farmer and if farmers have this, they take adventages for the others such as;

When the farmer want to take agricultural imputs such as fertilizer, fuel, ..., This bill must give the advantage to farmer and support and encouragemant to him in the literal sense. From the stantpoint of taxes, this system may record  agricultural products from land to dining table.

E-     At the selling agricultural crops, BAĞ-KUR contribution mustn’t taken from the total price. Instead of this above contribution must be taken by the Agricultural Society.

 The agricultural crops trade transact in the Stock Exchanges affected negatively because of the BAĞ-KUR contribution. This Problem reduces the total transaction volume. After selling operation The BAĞ-KUR contribution reduce the total price. For this reason some grovers sell his crop unregistry. In my opinion this contribution collected  by the Agricultural Society  like subscription payment.