Take action to rescue the cotton spinning industry.

Cotton Association of India has sent a letter to Multi Commodity Exchange of India Ltd (MCX) urging them to take corrective action . The current trading open interest in MCX cotton futures is only 87,500 bales, which is just a quarter-per-cent of the country's cotton crop .

Aurangabad (Indianagar): The Cotton Association of India (CAI) has sent a letter to the Multi Commodity Exchange of India Ltd (MCX), as well as the Union government, urging them to take corrective action to prevent the country's cotton spinning mill industry from being completely destroyed, according to the letter.The current trading open interest in MCX cotton futures is only 87,500 bales, which is just a quarter-per-cent of According to the letter, the USA's cotton crop is 175 lakh bales, and the ICE futures have an open interest of 180 lakh bales, which accounts for over half of the country's crop size.Despite having a huge crop of cotton, Indian cotton is only trading at 20%, compared to ICE futures, which are at 12,000%.The letter cautioned the MCX that this trend would harm India's entire cotton spinning mill industry if not stopped immediately.The current higher exposure limit of up to 90,000 bales offered to each participant at MCX is causing daily MCX speculativeness and cotton galloping.Since MCX prices are the benchmark price for all ginners around India, this kind of speculating is detrimental to the entire textile value chain, according to the letter, which also demands immediate remedial steps to avoid fluctuation in cotton prices.