Home / Knowledge / News / Textiles / Cotton bodies say 'NO' to cotton future trading
Cotton bodies say 'NO' to cotton future trading
14
Oct '11
Stakeholders from all India cotton ginning sector converged together and concluded to refrain from futures trading in cotton henceforth.

Last Saturday, a meeting was held by All India Cotton Ginners' Association (AICGA). Representatives of various cotton bodies namely, Mr. Dhiren Sheth (President – CAI, Mumbai), Mr. Dilip Patel (President -AGCGA), Mr. Bharat Vala (Saurashtra Ginners' Association), and ginners associations of Madhya Pradesh, Karnataka, Andhra Pradesh were present to discuss the pros and cons of the cotton future trading.

Post meeting, they all arrived at the decision that no one from the sector -be it factory owner, ginner or farmer, will venture into futures trading for cotton. If anyone wishes to bet on forward trading then it will be at proprietor's own risk.

Mr. Saurin Parikh, General Secretary, All Gujarat Cotton Ginners Association (AGCGA), describes- “Forward trading is very uncertain,” while speaking to Fibre2fashion.

He observes that whether future traded cotton prices go up or down, in both the cases it is gambled loss to someone, and in such cases, a lot of people make wrong decisions and incur huge losses.

“So, none of us prefers to venture into future business,” declares the GS, in a determined tone.

In a talk with Fibre2fashion team, President of Punjab Ginners' Association, Mr. Bhagwan Bansal, who was also present in the meet, explains the reason behind 'No' to cotton future trading.

Mr. Bansal illustrates, “For instance, if the rate of cotton today is Rs. X and someone goes in for futures trading for November at a rate of Rs. X+, but the prices fall/rise considerably. In such a situation, the person on losing end may repudiate or withdraw from the deal thereby raising strong disputes.”

“Therefore, we have decided to deal only into spot business and completely discourage futures or forward trading”

The president further informed that with a common consensus, the stakeholders in the sector have summed up to freeze the rate of ginned cotton at Rs. 700 per bale, at all India level. He made a special mention that this rate is fixed with due consideration to increasing inflation rates, machinery costs, spare parts, property, labor wages, fuel-energy costs and such influential factors.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 24th Jul 2017

Gartex all set to feature garment, textile solutions

Complete value chain of garment and textile manufacturing solutions...

Courtesy: Abercrombie & Fitch

Apparel/Garments | On 23rd Jul 2017

Abercrombie & Fitch launches products on Alibaba Tmall

Abercrombie & Fitch has announced the launch of Abercrombie & Fitch...

Apparel/Garments | On 23rd Jul 2017

NRF urges Congress to reject border adjustment tax

The National Retail Federation has urged Congress to reject a...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X