NCDEX ties up with CAI to design, promote cotton derivatives trading
The Letter of Engagement commits both organisations to deepen participation in cotton derivatives and build a more robust, transparent price discovery mechanism and risk management tool for the Indian cotton supply chain
NCDEX, a prominent commodity and stock exchange, has formed a strategic five-year partnership with CAI, the Cotton Association of India. The collaboration aims to deepen involvement in cotton derivatives trading, promote a more robust price discovery mechanism, and enhance risk management for India's cotton supply chain. Despite producing 20-23% of the world's cotton, India has struggled to establish itself as a leader in price discovery due to fragmented physical markets, uneven price transmission, and low derivatives participation.
By working with CAI, which boasts a vast membership base and on-the-ground expertise, NCDEX seeks to address these challenges and align its Cotton Complex offerings with global standards.
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