CAI, BSE ink pact on cotton futures trading platform

Mumbai: The Cotton Association of India (CAI) and the Bombay Stock Exchange (BSE) Wednesday signed an agreement to develop the futures trading platform for cotton.

Under the memorandum of understanding (MoU), CAI and BSE will jointly develop a user-friendly cotton exchange to cater to the hedging needs of the entire cotton value chain in the country, which will be effective for the next five years, an official release said.

The Sebi had in December last year announced that from coming October, the country would have a unified exchange regime wherein stock exchanges would be allowed to offer trading in commodities derivatives.

BSE is planning to soon launch cotton futures contract, which will benefit the entire cotton sector in the country.

CAI president Atul Ganatra said the futures contract will not only help cotton growers get best price for their produce but also benefit exporters as well as the spinning mills by providing them a platform to hedge, which is now lacking in Indian cotton future market.