KARACHI, March 1: The Karachi Cotton Association (KCA) has asked the caretaker minister for commerce, textile industry, privatisation and investment Shahzada Alam Monnoo to allow KCA to resume hedge trading in cotton as it was doing this practice since 1934.KCA Chairman Iqbal Umer informed the minister, who visited the KCA on Saturday, following the nationalisation of cotton export trade and establishment of the cotton export corporation (CEC) hedge trading in cotton was suspended in 1976.

He urged the minister to allow hedge trading in cotton in the light of decision of federal cabinet taken in its meeting held on March 24, 2005.

Responding to issues raised by the KCA, the minister said that a committee comprising all segments of cotton trade would be constituted to make recommendation to enhance the production of BT cotton thereby increasing the cotton output.

Mr Monnoo also pledged to look into the causes for closure of cotton seed plant at Sakrand in Sindh.

With regard to resumption of hedge trading in cotton the minister said that in the greater interest of cotton economy, all the stakeholders should sit together to consider the vital issue of resumption of hedge trading in cotton.