In the status quo, the trade and price policies
are tending toward improving the room for the trade of the agricultural crops.
The increasing trend of the international –oriented markets has resulted in
trade improvement, increasing competitiveness, too, Shirzad stated.
According to the recent studies, despite
existing shortages in securing agricultural inputs, the majority of the rural
coop member has trusted in their cooperative society. Creating a social capital,
this confidence reinforces the financial capacities as well as cooperative
Referring to the tangible shifts due to the
agreed purchasing, including the enhanced consumers' welfare and decreased
state costs, Shirzad affirmed that by applying a procedural modification
(price-support programs) of agreed purchasing, CORC regains its original stance
toward conducting the anticipated missions in the Article of Association.
Given the dominating atmosphere to accession to
WTO, the agriculture sector needs to acquire competitive advantages, therefore
adopting a comprehensive marketing system which covers the farm to fork stages,
Improving the room for agro-business, observing
the due standards for running quality movement, and cutting middlemen off, the
agreed purchasing could empower the cooperative members and secure the mutual
benefits of both parties.
Describing the inadequacy of the guaranteed
purchasing policy, passed in 1989, Shirzad, as a knowledgeable expert in the
field of agricultural development, said that at the initial stages, the small
farmers were resorting to this law to save their small- mid business against
the middlemen, notwithstanding, the law enforcement was confronted by many
obstacles including inadequate research, non-anticipation of the side effects
and lack of legal attachments.
Deviating of the very nature of the law, the
enforcement of the guaranteed purchasing law, not only brought about many
financial losses for national and producers' interests but also caused scarcity
and loss of quality of the goods.
Explaining the agreed transaction process,
Shirzad added that "agreed purchasing", in the "organizing plan
of agricultural crops transactions", is a procedure laying down on the
legal route of supply and demand as well as the signed contract s by both
"Hindering the damages of the guaranteed
purchasing, all the process of agreed purchasing should be set up prior to the
guaranteed purchasing. The whole process of agreed purchasing is operated by
the national unions of the rural and agricultural cooperatives and monitored by
the state bodies including CORC", Shirzad Stated.
He also mentioned the lack of cash, mental
resistance of the involving managers, lack of appropriate contract farming
mechanisms and high risk due to price fluctuation caused by macro-economy
instabilities, as the major challenges which should be tackled.