13 January 2022, Mumbai:
Stakeholders in the Indian cotton industry have urged the Central government to take immediate action against MCX and NYCE speculators for hedging and trading of Cotton Kapas.
In a letter to the Prime Minister, R C Jain, Chairman, TT Ltd writes, Piyush Goyal, Union Minister of Textile and Railways had called a stakeholders’ meeting in November to discuss the issue of hike in cotton prices despite an unprecedented yield this year.
Unauthorized speculation a worry
The meeting had concluded price rise is mainly a result of the unauthorized speculation indulged in by MNC hoarders and Indian speculators for monetary gains at the cost of entire textile industry in India. Price rise had halted cotton exports for a few weeks in November. Export of garments and all other accessories also are badly affected due to the new Omicron and COVID waves.
Stakeholders have questioned the government’s failure to include cotton in the list of banned agricultural commodities for hedging and trading on MCX and NYCE to stop speculations on cotton prices.
The hedging and trading on MCX and NYCE have led to 80 per cent rise in cotton prices in the last three months and still continues to rise, stakeholders say.
Any failure to take action against these activities by the government may lead to halt in power, hosiery and apparel industry activities in the country, they add. Jain has urged the PM to take immediate action to stop hedging and trading of Kapas and cotton by speculators on MCX and NYCE.