NMCE may launch Bt cotton futures in '09

After launching V-797 cotton (popularly known as Kalyan cotton in Gujarat) futures, National Multi-Commodity Exchange of India Ltd (NMCE), one of the leading commexes in India, may start futures contracts in Bt cotton and other varieties of cotton next year.

“We have rolled out V-797 cotton futures at NMCE and based on the success of this contract, we will go for new contracts for Bt cotton and other varieties of cotton,” NMCE managing director, Kailash Gupta said while announcing the launch of V-797 cotton futures at Surendranagar, which is a major grower of Kalyan variety of cotton in Gujarat.

“This year we will see the response to V-797 cotton futures and based on the success of this contract we will launch Bt cotton futures next year,” he added. NMCE has also collaborated with Surendranagar Cotton Exchange for its newly launched cotton contract. The trading will be available in May 2009 contract. NMCE has firmed up its plans to launch currency futures

“Since NMCE has designed this contract after extensive deliberations with cotton growers, ginners, traders, brokers and experts, it will be found useful by all types of market players,” said Forward Market Commission, chairman B C Khatua, who was in Surendranagar to attend the launch ceremony.

Talking about the impact of global slowdown on commodities futures business in India, he said that it has adversly impacted the commodities futures business. However, he did not quantify the loss.