The Confederation of Indian Textile Industry (CITI) has signed a memorandum of understanding (MoU) with Multi Commodity Exchange of India (MCX) on cotton price risk management. The primary objectives of the MoU are to facilitate awareness programmes for cotton value chain participants, including farmers, price ticker board installation at textile parks and joint representation to ministries and regulators for the holistic growth of the cotton sector.
On the occasion, Mr. Sanjay Jain, CITI Chairman, said: “We are delighted to partner with MCX which has a highly successful and popular cotton contract. By virtue of this MoU, textile industry stakeholders would be imparted knowledge about the benefits of cotton futures mainly focusing on cotton price volatility and the need for risk management through cotton futures, while working towards other important common goals.”
Mr. Mrugank Paranjape, MD & CEO, MCX, said: “The MoU is a remarkable development, and both sides will work for the overall development of the sector. The tie-up will help MXC broaden its base for cotton futures contract by bringing in more and more cotton stakeholders under the beneficial ambit of commodity derivatives market.”
CITI has requested MCX to launch an index mirroring the international index ICE (popularly known as New York Futures) so that the domestic industry which is now globally connected can arbitrage / hedge themselves against global price movements. This would give them a level playing platform against their peers who have access to hedging internationally.
The entire textile fraternity present on the occasion stated that it is a positive development and will help the textile industry on cotton price volatility and risk management through cotton contracts.
The 9th Asian Textile Conference (ATEXCON) organized by CITI had a grand opening in Mumbai on March 14. The flagship annual conference of CITI was attended by more than 400 delegates from India as well as from other nations such as Switzerland, Indonesia, Bangladesh, Sri Lanka, the Netherlands, etc. The attendees represented the entire breadth of textile manufacturing value chain, ancillaries as well as the services segment.
The conference was graced by the presence of Dr. Kavita Gupta, Textile Commissioner, as the Chief Guest.
The theme of the conference was “Textile Industry: Moving Beyond the Conventional Paradigms”.