Interview with Mohit Shah

Face2Face
Mohit Shah
Mohit Shah
President
International Cotton Association (ICA)
International Cotton Association (ICA)

Can you explain a bit about the role played by ICA in ethical cotton trading in the global market?

There are organisations that focus on the ethical side of cotton trading such as Fairtrade and the Better Cotton Initiative (BCI). At the ICA, our main remit is arbitration - we are the world's largest and most recognised arbitral body for the raw cotton trade. Our core principle is to promote safe trading so that contract sanctity may be preserved - essential to having a sound and sustainable cotton trade. Being a member of the ICA shows the world market that you support contract sanctity and that you want to operate in a safe trading environment.

Majority of trade in the global cotton market are carried out under the ICA rules. How does that help the cotton traders and buyers in the global market?

Most of the international cotton trade today takes place under ICA rules. The rules were developed over 170 years ago to help regulate the sale and purchase of raw cotton. They have changed with time to adapt to the trading environment, but their aim remains the same - to create a safer trading environment. Creating a safer trading environment does not discriminate between the buyer and the seller. It's about protecting the rights of everybody in the market. Our aim at the ICA is to protect the legitimate interests of all those who trade cotton - whether they are buyers or sellers, mills or merchants. ICA rules provide a framework to support equitable trading and promote an orderly, commercial process between buyers and sellers. Without this trading framework the market for buying and selling raw cotton would be chaotic and the associated increase in risk would be reflected in cotton prices. You do not have to be a member of the ICA to trade under ICA Bylaws & Rules - they are designed to be applied to contracts covering the purchase and sale of cotton between any two companies (buyers and sellers), anywhere in the world. In the event of a contract dispute those companies have the right to apply for ICA arbitration. One of the many benefits of being a member of the ICA is that application for arbitration is free and members pay reduced stamping charges for awards. Any arbitration award produced by the ICA is internationally recognised and legally enforceable under the New York Convention.
Published on: 07/07/2014

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

F2F NewsLetter

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

 Fibre2Fashion Monthly Newsletter
 Upcoming Trade fairs & Events Monthly
 F2F Weekly Insights
 Technical Textiles eNews Weekly
  Please refer our Privacy Policy before submitting your information