MCX inks pact with Maha govt to empower cotton farmers

The Multi Commodity Exchange of India (MCX) today said it has signed an agreement with the Maharashtra government to empower cotton farmers in the Vidarbha region.

Under the memorandum of understanding (MoU), MCX will partner with the Maharashtra's agriculture department and other government agencies to work closely with Farmer Producer Organisations (FPOs) and help them to connect to the exchange's organised market network and enable them to build their capacities, a release said.

It aims to create a value chain with final market linkages to support thousands of cotton farmers in Akola, Amravati and Wardha.

"Commodity exchanges greatly influence a large section of society due to the trading of various agro commodities, base metals and bullion. They can play a key role for inclusive growth and development of commodity markets and market infrastructure," Maharashtra chief minister Devendra Fadnavis, who was present on the occasion, was quoted as saying in the release.

He said MCX's assistance in creating a value chain with a final market linkage will help the farmers in planning their crop as well as demanding the right value in the market for their produce.

"Under 'Cotton Mission', the exchange will work with the government to identify and create farmer groups, and work towards equipping these groups to access regulated markets that will enable them to participate in a transparent price discovery mechanism and sell their produce in a national market for better price realisation," said Mrugank Paranjape, managing director and chief executive, MCX.

MCX already has accredited warehouses in Yavatmal and Jalna, according to the release.

To further facilitate delivery of cotton in the region, the exchange plans to provide delivery facilities in three or more new locations in Vidarbha.