Flood-hit Pakistan to launch wheat, cotton, sugar futures
Friday, 1 October 2010
ISLAMABAD, Sept 30 (Commodity Online): After the debacle caused by floods, Pakistan is desperately looking for foreign investment in its agriculture sector and plans introducing futures contracts in cotton, wheat, sugar and corn.
According to country's only commodities exchange, the National Commodity Exchange Ltd, the move, likely to start later this year is aimed to support growers and attract foreign investment.
The National Commodity Exchange Ltd already trades rice, gold and crude oil futures. It's trading jumped to more than $231.9 million this week, the highest since 2007
Samir Ahmed, managing director of the commodity exchange said NCE planned to offer sugar futures in the next two months, while the rest of the three may take till June.
He said the exchange is to deal initially with as much as five per cent of the crop but later will include entire harvests.
Pakistan is Asia's third-biggest sugar user and may import one million tons next year after the floods damaged 15 per cent of the cane crop, a farmers' group said this month.
Sugar mills may produce 3 million tons against a target of 3.5 million tons in 2011, analysts said. Pakistan's deadliest floods this year ruined crops worth $3.27 billion, destroying rice, cotton and sugar.
According to country's only commodities exchange, the National Commodity Exchange Ltd, the move, likely to start later this year is aimed to support growers and attract foreign investment.
The National Commodity Exchange Ltd already trades rice, gold and crude oil futures. It's trading jumped to more than $231.9 million this week, the highest since 2007
Samir Ahmed, managing director of the commodity exchange said NCE planned to offer sugar futures in the next two months, while the rest of the three may take till June.
He said the exchange is to deal initially with as much as five per cent of the crop but later will include entire harvests.
Pakistan is Asia's third-biggest sugar user and may import one million tons next year after the floods damaged 15 per cent of the cane crop, a farmers' group said this month.
Sugar mills may produce 3 million tons against a target of 3.5 million tons in 2011, analysts said. Pakistan's deadliest floods this year ruined crops worth $3.27 billion, destroying rice, cotton and sugar.