Sanctity Of Contracts: A Must: 'A responsible government cannot encourage the non-execution of contracts duly and legally entered'

摘要

Price fluctuations have been quite exceptional during the 1993/94 season. After two years of low prices around 50 to 55 cents per pound, based on the Liverpool A Index, cotton prices surged by around 60 percent from November 1993 to June 1994 to the level of 87 cents. From June 1994 to September 1994, the Liverpool Index came back from 87 cents to 75 cents. The world cotton trade is engaged in the business of buying cotton when it is offered on the market and of selling when mills want to buy, alongwith all the corresponding services. Among them, the most important is the hedging of price risk.