NCDEX Partners with CAI to Boost Cotton Derivatives
NCDEX, India's leading commodity exchange, has entered into a five-year strategic partnership with the Cotton Association of India (CAI). The initiative aims to increase participation in cotton derivatives, enhance transparent price discovery, and raise awareness about hedging among farmers, ginners, spinners, exporters, and traders.
This agreement comes at a time when India accounts for approximately 20–23% of global cotton production and contributes nearly 38% to the total global cotton cultivation area. However, India's role in determining global cotton prices remains limited due to a fragmented physical market and the limited use of derivatives.
According to an official statement, Vikas Goyal, Managing Director and CEO of NCDEX, and Vinay Kotak, President of CAI, signed a 'Letter of Engagement' in Mumbai. Lalit Kumar Gupta, Chairman-cum-Managing Director of the Cotton Corporation of India (CCI), was also present on the occasion.
Under this partnership, the NCDEX cotton derivatives platform will be strengthened. Currently, contracts for raw cotton, cottonseed oil cake, and cotton wash oil are available on this platform.
Both organizations will promote futures trading as an effective risk management tool among farmers, ginners, spinners, exporters, and traders.
Special emphasis will be placed on awareness and adoption programs in major cotton-producing states such as Maharashtra, Gujarat, Punjab, Andhra Pradesh, and Telangana.
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