Commodity index kicks off

A new commodity index that tracks prices of selected agricultural products and allows the public to access market information over their mobile phones has been launched in Accra.

With up to-date information from markets across the country, businesses and individuals can access prices, browse offers to buy or sell, or advertise their own products and services. Traders can also procure product more quickly and at a better prices for everyone.

Owned and published by Esoko Ghana Limited, the index will track prices at two levels; the Esoko Ghana Commodity Index-Retail (EGCI-R) and the Esoko Ghana Commodity Index-Wholesale (EGCI-W).

Mr. Bernard Otabil, Managing Director, Esoko Ghana, launching the index explained that the commodity index which is mainly cash market price is based on physical commodities.

“Results demonstrate that farmers who receive real-time price data are able to improve revenues by negotiating better prices or selecting more favourable markets for their produce.

Currently covering 20 agricultural products in 30 local markets across the country, the index were developed to serve as benchmarks for selected commodity prices in selected markets as a measure of commodity prices performance over time.”

The index has been developed to assist analysts and policy makers as well as the media keep track of prices, which have been so volatile over the last few months. It will also provide transparency to farmers and traders and help with production planning in the country.

“The aggregation methodology chosen for the EGCI uses a weighted average calculation based on prices across selected markets which has been designed to capture different price movements at both the retail and wholesale market levels,” Mr. Otabil said.

Esoko’s goal is to improve market efficiencies throughout the value chain hence reducing poverty and contributing to the role of agriculture in the country’s national development.

Active in eight African countries, Esoko was designed and built exclusively in Ghana.
It was recently recognised by the United Nations as a ‘World Summit Awards 2009 Winner’ for its work in creating unique content.