KARACHI, May 5: The Karachi Cotton Association (KCA) has dispelled the impression that resumption of hedge trading in cotton was a unilateral decision and it does not serve the interest of all the stakeholders of cotton. In a statement issued on Thursday the chairman KCA, A Shakoor Dada, said that the matter of resumption of hedge trading in cotton was considered time and again in the past. Again on April 29, 2002 the ministry of commerce constituted a committee comprising representatives of cotton growers, ginners, State Bank, SECP, ADBP, Aptma and the KCA to examine proper discipline, regulation and time frame for restarting the futures market in cotton.

The committee deliberated on the subject in their various meetings and finalized the reports recommending that the hedge trading in cotton may be resumed under the aegis of the KCA.

It is interesting to observe Mr Dada said that all the stakeholders of cotton including the cotton growers from Sindh and Punjab, the PCGA and Aptma were members of the committee formed by the ministry of commerce and are signatories to the recommendations submitted to government regarding resumption of hedge trading in cotton.

In the light of these facts, the KCA chief said that at this stage there was no logic or reason for opposing such a decision which had been agreed upon by all the stakeholders of cotton trade.

The KCA chief also observed that whereas the PCGA and Farmers Association of Pakistan (FAP) are now being sanctimonious regarding religious aspect of hedge trading, the PCGA leaders had been very active in running a forward market in oil cakes in the unorganized sector.

He further said that the hedge market in raw cotton contemplates physical delivery and is purely optional and yet the KCA is open to the FAP and PCGA for a dialogue on this issue and would be ready to accept positive suggestion from any segment of cotton trade.