Country's second biggest commodity bourse, NCDEX, today announced the launch of cotton seed futures contract which will be available for trading from tomorrow.
"This contract is ideal for price risk management needs of the ginners, oil millers, stockists, etc. We expect NCDEX cotton seed futures contract to add tremendous value to the existing cotton business stakeholders," the exchange's Managing Director and CEO Samir Shah said.
India produces about 10.6 million tonnes of cotton seed.
Besides India, China, the USA, Pakistan and Brazil are also major cotton seed producing countries in the world. The global cotton seed production is estimated at about 44.49 million tonnes this year, the exchange added.
Cotton seed is mostly used as a raw material to produce cotton seed oil cake and cotton oil, both of which have a very good domestic market.
NCDEX offers electronic trading in a wide range of products across agriculture, metals and precious metals. Its turnover stood at Rs 49,280 crore in the first fortnight of December 2013.
