Capital Market and its Role in Financing Saffron Industry and Producers: Case Study of Iran

Nowadays exchanges have an important role in the economical development in most of the countries. The agricultural commodity exchange finances the producers of the agricultural sector. Economic studies show a positive relationship between financial markets expansions and economical growth. This paper seeks to provide effective responses to finance of saffron producers and to find solutions for their financial problems. The study presents suitable information on the need of saffron producers to the agricultural commodity exchange. It describes the scientific responses to improvement the saffron markets. This research is an exploratory study whose data has been gathered from document sources and conducted within 18 months (October 2004-March 2006). The scope of this study was Iran. The data analysis was carried out using secondary analysis. The results of study indicated that agricultural commodity exchange needs a national attempt to achieve the goals and to have an effective role in the economy of this sector. In this study, method of financing and directing capital to agricultural sector is mainly discussed. Then by recognizing opportunities and threats of this market, it intends to provide the growth and development of Iran's capital market in agriculture sector in a scientific method