Pakistan: KCA asks for continued free trading in cotton
The Karachi Cotton Association (KCA) has asked the Pakistani government to continue with free trading in cotton, in order to protect the interests of farmers, traders and other stakeholders. The suggestion was made as a part of KCA’s recommendations for new cotton policy and the federal budget for the year 2012-13.
KCA urged the government to set up more entry points on the India-Pakistan border to ensure smooth import of cotton from India, as Pakistan is a major buyer of Indian cotton.
KCA said the decision of the Securities and Exchange Commission of Pakistan (SECP) to grant permission to the Pakistan Mercantile Exchange Limited (PMEL) for introduction of futures trading in cotton will lead to the stabilisation of cotton prices and decrease price fluctuations in the market.
However, the KCA termed the decision to grant the future trading in cotton to PMEL, instead of KCA, as unfair. It added that the KCA has better expertise for handling future trading in cotton.
