The Department of Agriculture (DA) Monday lauded the creation of an Agricultural Commodity Exchange (ACE) by the Philippine Stock Exchange (PSE), saying it would boost the interest of "market-driven food and agribusiness entrepreneurs."

Agriculture Secretary Arthur C. Yap said such a market for rice, corn, sugar and coconut "is something that should have been done way before. We need real-time price and market information if we are to create an environment conducive for growth of agri-fishery enterprises for these commodities."

He added that it benefits "small market players with improved price discoveries and greater transparency hopefully at all times across the country – allowing them to scan for the best prices in a broader market to better manage positions, risks, investments and ultimately, profitability."

ACE would essentially permit sellers to decide at what price they have to sell their products even if such trading would actually infuence the decisions of farmers on which crops to cultivate in the long run. Commodities futures also commit cultivators to sell their produce even before they are planted, with prices not being affected by the vagaries of the weather.