KARACHI, April 15: The Karachi Cotton Brokers Forum has urged the new government to resume hedge trading in raw cotton. It also called for increasing lint production to meet the rapidly growing requirement of the textile industry.

The forum chairman Naseem Usman in a statement pointed out that the federal government had already accorded its approval on March 24, 2005 for the commencement of cotton futures trading under the KCA.

He further said that SECP chairman Razi-Ur-Rehman in a meeting with Aptma in Lahore on February 28 also gave his consent for resumption of hedge trading in cotton.

Mr Usman said that the cotton market witnessed wide fluctuations in prices during the 2007-08 season, which resulted in instances of default in local and export trade.

The KCA has already adopted pricing mechanism and a system based on cotton grading and standardisation, which would further promote efficient marketing once futures trading in cotton starts, he said.

The KCBF is of the view that the free trading in cotton should continue as it safeguards the interest of all the stakeholders, including growers.