News Tags

Related Keywords: constitutes more than four percent, cope up with the persistent volatility, cotton prices, country’s yarn production capacity, MCX, on Multi Commodity Exchange of India Ltd., Punjab based major integrated textile producer in India, started hedging, to maintain its margins, Vardhman Textiles Ltd, VTL

Vardhman Textiles Ltd (VTL) a Punjab based major integrated textile producer in India to cope up with the persistent volatility in cotton prices has started hedging on Multi Commodity Exchange of India Ltd. (MCX).

It is of vital importance for VTL to hedge cotton prices, as it constitutes more than 4 percent of the country’s yarn production capacity. They believe that hedging the cotton prices will help VTL to maintain its margins.

Related Keywords: benchmark rates, bring transparency in the price discovery mechanism, CAB, CAI, cotlook index, cotton price index, cotton production, curb speculations across various markets, domestic and international, four different sources, futures, ICF, India plans to launch, MCX, spot, tracks delivered price of American cotton in China, trading platforms

India, in its attempts to curb speculations across various markets and trading platforms, and bring about further transparency in the price discovery mechanism is planning to launch a cotton price index of its own for which it will be taking into account benchmark rates from four different sources.