Home / Knowledge / News / Textiles / KCA against cotton futures trading
KCA against cotton futures trading
31
May '11
The decision of the Securities and Exchange Commission of Pakistan (SECP) to authorize Pakistan Mercantile Exchange Limited (PMEX) to introduce futures trading in cotton has been opposed by the Karachi Cotton Association (KCA).

The KCA has claimed that the SECP did not adequately consult the cotton industry stakeholders including All Pakistan Textile Mills Association (APTMA), KCA, Pakistan Cotton Ginners Association (PCGA) and Pakistan Cotton Forum (PCF) before arriving at the decision.

In a recent press release, the KCA has said that apparently, PMEX International Futures Contract depends on the NY Cotton Futures Contract and the transactions are settled in cash.

Also, PMEX has averred that this contract would provide all those involved in different activities in the cotton value chain with hedging facility. Meanwhile, in its personal notes, PMEX has stated that domestic cotton does not form the base for trading. There is, thus, an anomaly as both the claims vary from each other.

Further KCA has even stated that interestingly US cotton, which hardly constitutes around 15 percent of the total global output, is solely tenderable in NY Futures Contract. Thus, it is difficult to grasp as to how NY futures market would be able to mitigate any concerned risk against Pakistan. PMEX however, claims that NY Futures Contract forms base of their contract.

Nonetheless, this calls for another anomaly as wherein NY Futures is a deliverable contract, PMEX contract has no provision for physical delivery. Besides, there is also a need to consider that cotton surplus advanced economies like Brazil, Australia and India have not yet introduced NY Futures Contract, while PMEX has introduced the same in a cotton scarce country.

Fibre2fashion News Desk - India


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Urmil Arya

Sushila International, a well established textile organisation established ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

December 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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

Yes No

Active Poll

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

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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

Yes No

Active Poll

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

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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

Active Poll

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

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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