The newly established DCC also signed a framework agreement with Uzprommashimpeks (UPM), a renowned major exporter under the Uzbekistan Ministry of Foreign Economic Relations (MFER) to buy 100,000 metric tonnes of cotton, and sell it to the wider Asian market. Uzbekistan is the world’s third largest exporter of cotton with major exports to Asia.

The announcement was made during DMCC’s participation at the 4th International Uzbek Cotton Fair 2008, held in Tashkent, Uzbekistan from 14-15 October, 2008. DMCC was invited by the Uzbekistan Ministry of Foreign Economic Relations, Investment and Trade (MFER) to participate in the Tashkent Cotton Fair.

His Excellency, Elyor Ganiev, Minister of Foreign Economic Relations, Investment and Trade of the Government of Uzbekistan, held high level meetings with the DMCC delegation to discuss plans to boost cotton trade opportunities for Uzbekistan through DCC. Led by Dr. David Rutledge, Chief Executive Officer, DMCC, the delegation included Ashok Das, Executive Director Soft Commodities and Commodity Trade Finance and Krishnan Ramamurthy, Director, Dubai Cotton Centre, DMCC.

Speaking at the inaugural session of the 4th International Uzbek Cotton Fair 2008, Dr. Rutledge emphasised that Dubai’s strategic location and well-developed infrastructure will serve as the key asset in facilitating greater and rapid cotton trade flows to the wider Asian market including Vietnam, Korea and China.

Dr. Rutledge said, “Cotton is the second agricultural commodity that DMCC has forayed into, following the immense success in the tea trade. Dubai is already recognised as a leading trading hub for commodities, and with the DCC initiative, we have created a one-stop shop for cotton buyers. We are very pleased to partner with the MFER and Uzprommashimpeks (UPM), a renowned major cotton exporter under MFER for the DCC, which we believe will be a crucial component in feeding major markets in Asia that jointly consume around 15.6 million tonnes of cotton each year.

“Dubai would become the Liverpool of the 21st century,” he added.

The DCC is a wholly-owned subsidiary of DMCC established to facilitate cotton trade between Uzbekistan and the international trading community, small and medium sized indenters and end users. It enables financing, accessibility, and daily spot cotton prices to be offered to consumers. In addition, the DCC will facilitate trade finance for cotton inventory purchased by traders and stored in Dubai through its indigenously developed Global Multi Commodities Receipt. Furthermore, DCC will provide inspection facilities throughout the trade journey of the material.

DMCC also signed MoUs with Wakefield Inspection Services for availing of quality inspection services and Tianjin Commodity Exchange Co. Ltd (TJCOMEX) for the sale and marketing of Uzbek cotton in China.

Wakefield Inspection Services Ltd is a worldwide leader in the independent cotton quality assessment, capable of carrying out accurate and objective quality verification and reporting services. Wakefield will provide sampling and classing of grade against Uzbek standards, ascertain and report of Net Landed Weights on arrival at agreed points of delivery and maintain weight loss control data.

Tianjin Commodity Exchange Co. Ltd (TJCOMEX), a commodity exchange incorporated in the Peoples Republic of China, will facilitate DCC’s entry into the Chinese market, and assist DCC in the Tianjin Binhai area for port logistics, handling preferential rates, customs clearance and financing of DCC’s China based clients. DCC will also work closely with TJCOMEX to set up an electronic web based portal for offering spot cotton prices to its members within the Peoples Republic of China.

The DCC is a result of the historic Memorandum of Understanding (MoU) that was signed in March 2008 between DMCC and Uzprommashimpeks (UPM).