The Surendranagar Cotton Exchange (SCE) which currently deals in just one variety of cotton futures will launch futures trading in the most exported long staple raw cotton variety from India – Shankar-6, beginning from September 2011.
The current futures product is a locally grown short staple cotton variety; V-797.
The commodity market regulator; Forward Market Commission (FMC) will provide the formal approval, which is expected shortly.
SCE was one of the prominent cotton exchanges in India in its heydays. However exchange has seen a dip in its turnover in the past few years, so it was planning to increase the futures product portfolio.
The exchange which recorded a turnover of an awesome Rs 329.67 billion in 2003 saw it plunging to Rs 40.50 billion in 2009-10, which again dipped to Rs 25 billion in 2010-11.
Providing details to fibre2fashion, M. Manubhai Shah, Director – SCE informed that, beginning from September 2011, they will launch a new hybrid cotton future product; Shankar-6.
“Currently the only futures product is the short staple cotton variety; V-797. However, output of the long staple variety has increased, as this cotton is more in demand”, he said.
The current production of long staple cotton variety is around eight million bales (1 bale=170 kg), while that of short staple variety is about one million bales.
“The yield along with demand for long staple cotton is good and we also get good prices for it. The government also provides help to farmers by supporting production and price of Bt cotton seed is also fixed by the government”, he updated us by giving reasons for the increase in acreage of long staple cotton.
Fibre2fashion News Desk - India
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