CAI in pact with NCDEX to strengthen cotton futures market
Kotak emphasised that futures perform three vital functions—price discovery, hedging and risk management, and providing liquidity
The Cotton Association of India (CAI) and the National Commodity Derivatives Exchange Limited (NCDEX) have signed a Letter of Engagement to enhance the cotton futures market in India. The agreement was signed by Vikas Goel, Managing Director and CEO of NCDEX, and Vinay N. Kotak, President of CAI, in Mumbai. Kotak emphasized that futures play a crucial role in price discovery, hedging, risk management, and liquidity.
He highlighted India's potential to become self-reliant in cotton futures and urged active participation from all value chain stakeholders. NCDEX's Goel expressed confidence in the partnership, stating that CAI's deep membership base and on-ground expertise would be invaluable for market development and aligning with global standards.
The agreement aims to strengthen India's cotton futures market, support the government's vision of Atmanirbhar futures, and contribute to the nation's textile exports target of US$100 billion by 2030.
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