§ 52863 Cotton Handler Definitions

• •This law defines who is considered a 'handler of raw cotton fiber' or a 'merchant'.
• •A handler or merchant is someone or a company that mainly buys and sells cotton right away (spot cotton) or agrees to buy/sell it later (forward contract cotton).
• •This definition helps figure out who the law applies to when talking about cotton trading.

A company that buys cotton from farmers and sells it to factories.

This company is a 'handler of raw cotton fiber' because its main job is buying and selling cotton.