Multi Commodity Exchange of India Ltd (MCX) signed a MoU with Indian Cotton Federation (ICF) at a conference ‘Gobal Cotton Scenario’ jointly organised by ICF and Indian Cotton Association (Bathinda). ICF, formerly known as SICA, the South India Cotton Association is a premier organization representing the Textile Industry, Cotton Brokers & Cotton Growers of India.
The MoU with MCX will enable ICF’s members to effectively participate in the Exchange’s knowledge-sharing initiatives to understand the benefits, techniques and strategies of risk management using cotton futures contracts. The agreement is further designed to facilitate potential collaboration in areas such as organising awareness events for cotton value chain participants, including farmers across the southern belt; installation of price ticker board at Textile parks; and joint representation to Ministries & Regulators for further development of the sector, among other activities. India is the leading producer of cotton in the world, followed by China and the US. As per the Governments third advance estimates, Indian cotton production in 2017-18 (July-June) is estimated at 3.6 crore bales, higher than last years production of 3.4 crore bales. According to Cotton Association of India (CAI), the country’s cotton exports are estimated to be around 100 lakh bales (of 170 kg each) during the 2018- 19 (marketing year) period. The overall cotton shipment is likely to cross 70 lakh bales during the ongoing 2017-18 marketing year (October to September).