Cotton Mission: Maharashtra Government signs MoU with MCX to empower cotton farmers

Maharashtra Government has singed MoU with India’s largest commodities exchange platform, Multi Commodity Exchange of India Limited (MCX) to launched Cotton Mission to empower cotton farmers in the state. The mission aims to create value chain with final market linkages for thousands of cotton farmers in Vidarbha region of the state.

Cotton Mission

Under this mission,  MCX will partner with state agriculture department and other agencies to work closely with Farmer Producer Organisations and help them connect to its organised market network for building their capabilities. It will work with State Government to identify and create farmer groups and work towards equipping these groups to access regulated markets. This will enable farmer to participate in transparent price discovery mechanism and sell their produce in national market for better price realization. This in long term will support the farmers’ in their upliftment and contribute to doubling their incomes by 2022, as envisaged by the centre.

Background

MCX already has accredited warehouses in Yavatmal and Jalna in Vidharba region and it is planning to provide delivery facilities in three or more new locations under mission. Its cotton futures market provides efficient platform for farmers to move up value chain and increase their price realisations. It also allows farmers to use its mechanism to deliver or hedge to get remunerative prices.

Multi Commodity Exchange (MCX)

MCX is country’s first listed commodity futures exchange that facilitates online trading, and clearing and settlement of commodity futures transactions, thereby providing platform for risk management. It was launched in November 2003 and operates within regulatory framework of Forward Contracts Regulation Act, 1952 (FCRA, 1952) under SEBI. MCX offers futures trading in bullion, ferrous and non-ferrous metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes, palm oil and others). Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in futures trading.

Month: Current Affairs - June, 2018