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Cotton Traders Now Have A Collaboration With Centre, MCX, Trade & Industry

Published: February 14, 2023
Author: DIGITAL MEDIA EXECUTIVE

Real price discovery will be aided by it, and it will also give the industry a platform to hedging their risk from potential negative price volatility. Additionally, farmers will gain from this and have a reference price to use when deciding whether to sell their produce on the market.

Indian cotton prices peaked in May 2022, during the Cotton Season 2021–2022, at more over Rs. 100,000 per candy as a result of unseasonal rain, speculative trading, and a worldwide cotton deficit. Concerns about lower open interest and speculation in cotton futures trading on the Multi-Commodity Exchange (MCX) and the resulting manipulation of domestic cotton pricing were voiced by the industry.

The issue was brought up at the Textile Advisory Group’s 2nd interactive meeting. The issue was brought up during the second interactive meeting of the Textile Advisory Group (TAG), which was held on July 14, 2022, and as a result, the Product Advisory Committee of MCX was reconstituted and expanded with representation from the textile value chain from farmers to end users (i.e. spinning mills), in order to make the system more structured according to the domestic market and reduce speculative trading and cotton price volatility. The cost of cotton in India is now competitive and in line with world prices.

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