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Commerce Minister Tipu Munshi said the initiative of establishing a commodity exchange in Bangladesh is a major step, as the exchange will facilitate further growth of the national economy.
The minister said he is in a very uneasy situation over the recent unusual price fluctuations of commodities in Bangladesh, and its solution lies in establishment of a commodity exchange.
"I have realised the importance of a commodity exchange amid the recent price fluctuations in the country. It's a very time-befitting decision," he added.
Mr Tipu Munshi was speaking as the chief guest at a memorandum of understanding (MoU) signing ceremony at a city hotel on Tuesday.
The Chittagong Stock Exchange (CSE) and the Multi Commodity Exchange (MCX) of India Limited signed the MoU to establish the first commodity exchange in Bangladesh to ensure fair prices of goods for both producers and consumers.
The port-city bourse appointed the MCX for launching the commodity exchange by this year.
Ghulam Faruqe, Acting Managing Director of CSE, and PS Reddy, Managing Director and Chief Executive Officer of MCX, signed the MoU on behalf of their respective organisations.
Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof. Shibli Rubayat Ul Islam said the exchange will play a notable role in facilitating rapid growth of the country's economy.
"The exchange will help the economy to grow forward, ensure fair prices for farmers, and reduce price volatility."
He also said the farmers will know the prices of their produces even before the harvest, and the traders will know from whom they will buy through the commodity exchange.
"The country's supply chain and cold storage system will be developed, and a new horizon of economic development will be opened through today's journey."
"The new horizon is waiting for us. It's a historic moment for us that we have formally started the great job of establishing the commodity exchange," the BSEC chairman added.
Indian High Commissioner Vikram K Doraiswami said a major challenge in the countries like India and Bangladesh is efficient management of commodities as well as ensuring their quality and proper distribution.
He said the MCX will help the CSE to ensure quality of warehouse - required for the commodity exchange.
CSE Chairman Asif Ibrahim said rural farmers will get fair prices (of their goods), and development of the agricultural sector will be ensured for this.
"A Chittagong-based conglomerate is establishing a big warehouse in Chittagong, and it shows interest to facilitate operation of the commodity exchange," he informed.
Shaikh Shamsuddin Ahmed, a commissioner of the BSEC, Emdadul Islam, a director of the CSE, and Md Ghulam Faruqe, acting managing director of the CSE, also spoke at the event.
A commodity exchange is a legal entity that determines and enforces rules and procedures for trading standardised commodity contracts and related investment products.
Apart from developing bylaws, regulations and business plan for the exchange, the CSE will have to complete various activities, like - identification of products, creation of contracts, and development of clearing and settlement system.
Among the south Asian countries, India established commodity exchange - MCX - in 2003, Pakistan established Pakistan Mercantile Exchange in 2005, and Nepal established Mercantile Exchange Nepal in 2007.
The establishment of a commodity exchange came in discussion in Bangladesh in 2007, and the CSE came forward with a proposal of such exchange in 2017.