According to the Ministry of Agriculture, the conclusion of forward contracts for the supply of raw cotton has begun, and since this year farms have also been able to supply cotton raw materials based on a new type of forward contracts concluded through exchange trading.
To conclude a forward contract, farmers can log into their personal account in the information system of the Ministry of Agriculture "CropAgro", click the button "Conclusion of a forward contract for expected yield", enter the projected harvest volume and save the data. The information is automatically transmitted to the exchange's information system.
The amount of raw materials offered for sale (in tons) is calculated automatically based on previously sold volumes on futures contracts.
Cotton raw materials under the forward contract are grown at the expense of the farms' own funds or commercial loans.
Forward contracts are concluded between farms and processors at an agreed price, which may differ from the initial price set for futures contracts.
In addition, farms that have grown cotton raw materials using their own funds or commercial loans and sold them on the stock exchange will receive a subsidy of 10% of the invoice amount.
