Commodity Online
MUMBAI: Soon India may have a Cotton Price Index for the first time modeled on ICE Futures, US and Cotlook Index. Cotton Association of India (CAI) has announced its intention to launch the index immediately after launching two new cotton futures contracts awaiting approval from Forward Markets Commission (FMC).
CAI wants to launch a Cotton Price Index that will be an independent and unbiased indicator of cotton prices in India, according to President, P D Patodia.
The proposed index will be launched within a few months along with CAI’s two new cotton contracts that are being given final touches before the approval of the FMC, he said.
CAI proposes to launch two new cotton contracts – Gujarat Sankar-6 and Punjab J34- the two varieties of cotton widedly traded and exported. They will replace the two defunct cotton contracts on CAI.
Patodia said CAI intends to start mock trading of its new contracts, most likely by the end of September, to gauge the participation level of traders
