Hedge trading in cotton market opposed

07 Apr, 2004

Government should not allow speculative and hedge trading in cotton market because it would ruin the smaller traders while big traders would become millionaire in a season at the cost of ginners' and cotton growers' fate.
The Punjab Cotton Brokers Association (PCBA) has strongly opposed the permission of cotton hedge trading in the country and declared that it was an act against Islam.
The PCBA secretary general Chaudhry Riyaz Ahmed said that the association has held her meeting in Multan to discuss the matter and all the members unanimously rejected the initiative in this regard strong opposed the move.
The scheme is against in the interest of farmers, middlemen and ginners.
A few big guns have determined to exploit the scheme to protect their vested interests and cotton rates would show abrupt fluctuations.
Chaudhry said that all the people involve in this business would become stark and it was demanded from the government not allow the hedge trading in the country at any cost.

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