NMCE to launch cotton contract by month-end

National Multi Commodity Exchange (NMCE) plans to launch V-797 kapas (cotton) contract by the end of this month, Chief Executive Officer Anil Mishra said on Wednesday.

“We have already approached Forward Markets Commission (FMC) for the same and awaiting its approval soon. We expect to launch the contract by the end of this month,” Mishra said on the sidelines of a press conference here to unveil the new corporate identity of the exchange.

Currently, V-797 variety of cotton is traded on the NCDEX and MCX.

“However, our contract will have larger bandhni (price range), compared with the same available for contracts on other exchanges,” Mishra said.

Bigger price band will ensure better price discovery for stakeholders in the contract, he said. Bandhni is a price ceiling that spans over the lifetime of the contract over and above the base price that is declared by the exchange after observing the price movement for a week, post launch.

The contract on NCDEX and MCX matures in April but the NMCE’s contract will expire in May, Mishra said.