New Delhi, Mar 3 (PTI) Leading stock exchange BSE on Thursday said it has collaborated with Cotton Guru Maha FPO Federation that will enable the bourse to reach out to a large stakeholder group in the cotton value chain.
Cotton Guru Maha FPO Federation is a market-facing company, which is responsible for value-addition and marketing of member Farmer Producer Organisations and farmers.
Through this pact, BSE will be able to enable the Cotton Guru Maha FPO’s members to effectively participate in knowledge-sharing initiatives to understand the benefits, techniques and strategies of risk management using cotton futures contracts, the exchange said in a statement.
“The MoU (memorandum of understanding) with Cotton Guru Maha FPO will enable the exchange to reach out to a large stakeholder group in the cotton value chain in one of the of the most prominent cotton growing, processing and textiles regions of the country,” BSE CBO Sameer Patil said.
“BSE not only provides a robust and efficient platform for price discovery and risk management in cotton but also undertakes several educational and awareness activities to sensitize stakeholders about the modalities of using the exchange platform,” he added.
The pact also signals a long-term engagement between BSE and Cotton Guru to undertake several educational and awareness activities to sensitize cotton stakeholders about the modalities of using the exchange platform.
Against the current backdrop of COVID and geopolitical uncertainty, awareness of risk management for cotton stakeholders is crucial as several factors like rainfall, pest attacks, exports have a bearing on cotton trade and prices, the exchange saidd.
BSE said it aims to facilitate collaboration in fields like organising educational awareness events for cotton value chain participants, including farmers across Maharashtra, and joint representation to ministries and regulators for further development of the sector, and work together for designing of new products on commodities contracts.
Both parties would together participate in seminars and various other programmes with mutual understanding to educate the people/community about the commodity derivatives markets, its benefits and encourage commodity stakeholders to hedge on exchanges.
Further, both entities will cooperate in the growth and development of value chain participants and enable them to face competition and manage price risks better. PTI SP RUJ RUJ
