Cotton trade should be banned on the MCX and NCEX, according to Rikhab C. Jain
08 January 2022, Mumbai:
The clothing industry's concerns over escalating cotton and cotton yarn prices, as well as representations waiting for government action, are growing. As a result, on the 17th and 18th of January, the Tirupur clothing sector will go on strike.
Dr. Rikhab C. Jain, Chairman of TT Limited and a member of many industry groups, has once again addressed the problem and issued a letter to all hosiery and garment associations, including the AEPC.
"The problem of increasing cotton and cotton yarn prices remains unaddressed, despite representations to the Prime Minister, Textile Minister, Textile Secretary, and other relevant agencies."
Even yesterday, the Textile Ministry issued a warning to certain sector stakeholders as well as speculators, but speculators reacted quickly, and the MCX rose by 500 points or more in less than a minute.
"They have not responded appropriately to warnings, and speculators have concluded that, if any, government action would not have a big influence on them," Dr. Rikhab said in a statement.
He stated unequivocally that speculators, dealers, and cotton merchants have gained a fortune. According to the MCX analysis, the whole textile chain gained greatly during FY 2020-21.
This is a false assertion. Yes, the textile chain up to the spinning component has made super-super profits that they could never have imagined even a century ago. It is obvious from the above statement that spinners, cotton dealers, cotton ginning firms, and maybe farmers and speculators have profited from the fabric, powerloom, handloom, garment, and home textile segments.
They've put the entire textile chain, from fabric forward, on a rocky ride that has to be stopped right away. Speculators' actions must be curtailed immediately by prohibiting cotton trade access in any manner, both legally and informally.
He demanded that it be stopped right away by banning commodities trading on the MCX. Such infringing speculators must be dealt with harshly.
"I think this will aid in the resolution of the situation by the government's rigorous restriction of cotton trading on the MCX and NCEX, as well as swift action," he added. Other important trade associations, including CITI, SIMA, and TEA, have already spoken out against cotton trading on the MCX and NCEX.
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