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Proposal to allow cotton hedge trading to facilitate smooth flow

Related Keywords: against risk of fluctuations in price, benefiting weak stakeholders., facilitating smooth flow of national and international trading in cotton, help economy by providing a cover, KCA, need to allow cotton hedge trading, Pakistan government, through Karachi Cotton Association

The Pakistan government need to allow cotton hedge trading through Karachi Cotton Association (KCA) as it will help economy by providing a cover against the risk of fluctuations in price, thereby facilitating smooth flow of national and international trading in cotton, said KCA Senior Member Ghulam Rabbani on Sunday.

This system will also increase liquidity prospects besides

Hedge trading is a special segment of trade. The utility of hedge trading in cotton has been re-affirmed by three Cotton Hedge Enquiry Committees set up by the government in 1953, 1965 and 1971.

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