Home / Knowledge / News / Textiles / APTMA rebuffs restarting of cotton hedge trading

APTMA rebuffs restarting of cotton hedge trading

15
Apr '08
With cotton market adamant on remaining volatile, All Pakistan Textile Mills Association (APTMA) and Pakistan Cotton Ginners Association (PCGA) have shown serious concerns over restarting of Futures hedge trading.

Fibre2fashion endeavored to pick up the issue with Mr Akber Sheikh, Chairman APTMA Punjab Zone (which is ex officio Vice Chairman APTMA), who retrospecting the past experience stated, “A number of brokers defaulted causing innumerable losses to investors who were stripped of their hard earned money after which hedge trading was discontinued. Resuming futures trade would only expose investors at large to the vagaries of speculation.”

Mr Sheikh seemed more than confident that from all the stake holders in the cotton chain, to farmers, ginners and spinners would stand in favor of vehemently opposing futures trading in Pakistan.

When question on the strategies to be adopted for avoiding futures hedge trading was asked, Mr Akber explained saying, “The genuine stakeholders should stand firm on their stand to oppose hedge trading.”

Insufficiency of commodity and manipulations are not conducive to the credible operation of futures contract. However, Pakistan has always depended on imports to balance the 20 percent shortage in domestic cotton production and as such the question of hedge trading does not arise at all. Infact, to introduce this mechanism afresh, and at a time when prices for cotton are sky rocketing, would only prove to be major blunder.

To ensure that risks for investors in cotton trading is minimized, Mr Akber Sheikh suggests taking a future position on international exchanges since domestic market stands parallel to the global.

Fibre2fashion News Desk - India


Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Ravi Kant Prakash,

Ravi Kant Prakash

A crucial role in the process of fabric manufacturing is played by the...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

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

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing 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

Leave your Comments


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On

Follow Fibre2Fashion On


Advanced Search