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MCX says cotton contract delivery from October to August up by 119%

The delivery was 1,82,300 bales during the previous cotton season, MCX said in a release here

Press Trust of India  |  Mumbai 

The pink bollworm has been damaging Maharashtra's cotton crop since the last two years.

of India (MCX) on Tuesday said its cotton contract delivery from October 2018 to August 2019 surged by 119 per cent with record delivery of 3,98,600 bales, valued at Rs 853.12 crore.

The delivery was 1,82,300 bales during the previous cotton season, said in a release here.

During this season, cotton deposits, at Clearing Corporation (MCXCCL) 42 designated warehouses logged all-time high of 2.14 lakh bales compared to 1.81 lakh bales last year.

"Efficient price discovery coupled with robust delivery and settlement mechanism of the cotton futures contract has made it widely acceptable as one of the most effective tools for managing cotton price risk amongst the value chain participants," managing director and CEO P S Reddy said.

The increase in overall participation from cotton value chain has led to higher delivery and deposits of cotton at the exchange accredited warehouses, located at Rajkot, Kadi and Mundra in Gujarat; Jalna and Yavatmal in Maharashtra; and Adilabad and Warangal in Telangana, it added.

During this crop year, till August 2019, average daily traded volume increased to 1,01,125 bales as against 84,112 bales during the corresponding period last year, while daily average open interest increased to 3,45,580 bales from 2,53,963 bales last year.

MCX cotton futures contract has become a benchmark for the cotton industry comprising of physical market participants like farmers, ginners, producers, traders, processors, importers, exporters and other stakeholders in the value chain and emerged as an efficient and effective risk management tool for managing cotton price risk.

The exchange conducted a total of 66 awareness programmes on Effective Cotton Price Risk Management for the benefit of cotton stakeholders in the current season.

First Published: Tue, September 24 2019. 17:00 IST