India: Online cotton trading

INSIDE ASIA

Futures trading in cotton started in December of 1998 after an interval of about 31 years (futures were banned in 1967 because of excessive speculation), but volumes have been eluding the East India Cotton Association (EICA), the main trade body which represents cotton interests and also manages the futures exchange.

The volume of trading so far has been nominal, to say the least. For example, there was no trading at all between June 10 and 13, 2002. There was some trading in June (spot) and September contracts but again, between June 17 and June 21, 2002, there was no trading at all. While leading members …