NITMA and MCX Signs MOU to Educate Its Members
The Northern India Textiles Mills’ Association and the Multi Commodity Exchange of India Ltd of India Ltd have signed a MoU to educate the members of NITMA. The other relevant stakeholders will also get the benefits of cotton derivatives.
It is reported that the cotton constitutes approximately 59 percent in the raw material basket of the Indian textile industry. On account of factors beyond the control of any stakeholder group, the global cotton market is marked by high price volatility and suspicions. During the year 2017-18, it was observed that the annualized volatility of about 13 percent margin is quite more than the margins of most textile mills.
Multi Commodity Exchange of India will provide a good and proficient platform for price discovery and the risk management in cotton, MCX will be offering guidance. Besides, MCX will also be serving people with several educational and awareness activities to sensitize them about the modalities of using the derivatives platform.
All the large textile mills in the Northern part of India are associated with NITMA and the combined turnover of its members is approx. Rs. 33,000 crores in Domestic market and 3400 crores of exports.