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NCDEX, CAI Pact Targets India’s Cotton Futures Market
The Cotton Association of India and NCDEX have agreed to work together on cotton futures trading.
They signed this agreement in Mumbai on September 3, 2026.
Futures contracts can help people manage changes in cotton prices.
CAI knows a lot about cotton, while NCDEX provides the trading technology and marketplace.
Together, they want to create a market that is clear, reliable and easy to use.
Farmers, businesses and exporters could use it to plan for changing prices.
CAI said the market will work well only if many people across the cotton industry participate.
The partnership also supports India’s goal of becoming more self-reliant in cotton futures trading.
The Cotton Association of India and NCDEX signed a Letter of Engagement in Mumbai to develop India’s cotton futures market.
The partnership combines CAI’s cotton-market expertise with NCDEX’s technology and commodity-derivatives capabilities.
The organizations aim to improve price discovery, hedging, liquidity and risk management across the cotton and textile value chain.
CAI said active participation from growers, traders, exporters and other market participants will be essential to the contract’s success.
The initiative is intended to support farmers, textile exporters and the government’s goal of achieving $100 billion in textile exports by 2030.
- Who
- The Cotton Association of India, the National Commodity Derivatives Exchange Limited, their leaders and other industry stakeholders.
- What
- They signed a Letter of Engagement to develop and strengthen India’s cotton futures market.
- Where
- At the NCDEX office in Mumbai, India.
- When
- The agreement was signed on Thursday and the report was published on September 3, 2026.
- Why
- To improve price discovery, liquidity, hedging and risk management for the cotton and textile value chain, while supporting farmers and exporters.
Key facts
- Agreement
- Letter of Engagement between the Cotton Association of India and NCDEX
- Signing location
- NCDEX office, Mumbai
- NCDEX signatory
- Vikas Goel, Managing Director and CEO
- CAI signatory
- Vinay N. Kotak, President
- Main objectives
- Price discovery, hedging, risk management and greater market liquidity
- Historical context
- CAI was the first exchange permitted to resume cotton futures trading after futures were reintroduced in 1998
- Export target supported
- The government’s goal of achieving US$100 billion in textile exports by 2030
Quotes
Vinay N. Kotak
President of the Cotton Association of India
“India is one of the world’s largest producers and consumers of cotton, yet Indian market participants often look towards international markets for hedging. We should aspire to become Atmanirbhar in futures.”
thehindubusinessline.com
“Cotton is central to India’s agricultural economy, yet our derivatives market has never fully reflected the country’s scale of production. This partnership with CAI is a deliberate step to change that.”
thehindubusinessline.com
Sources
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