RAICHUR: The Multi-Commodity Exchange of India (MCX) is enabling stakeholders in the cotton value chain to gain knowledge on the pan-India price of cotton.
N K Muthappa, Assistant Vice-President-Business Development, MCX said, “The availability of an efficient rupre-denominated futures and options (F&O) market in cotton within India, as well as its dissemination, is enabling participants across the value chain to have knowledge of the right ‘pan-India price’, as well as to hedge effectively.”
“Besides, although the base grade of the MCX cotton contract is 29 mm, its deliverable range is 27 mm to 31 mm, which covers about 75 per cent of India’s cotton produce. These advantages of the MCX cotton contract make it highly attractive to stakeholders of India’s cotton economy.”
Bellam Narsa Reddy, President, Gunj Merchants’ Association, said, “A crucial institution in the ecosystem of cotton is the futures market of this commodity, which has been playing a great beneficial role in the entire ecosystem from farmers to ginners to textile mills by providing an effective platform for risk management and price discovery.”