CMD Atul Ganatra: Hedging is necessary in business
By yash chouhan 2026-02-18 11:26:08
Shri Atul Ganatra, CMD of Radha Lakshmi Group, said – Every businessman should do hedging.
Chairman and Managing Director (CMD) of Radha Lakshmi Group, in a special conversation with Zee Business, said that every businessman must use hedging.
He said that NCDEX's "Cotton" and "Omace" contracts are very useful for farmers and ginners. Earlier, there was a cotton platform on MCX in India, where traders could do hedging. But now there is no liquidity in MCX contracts, due to which the business there has come to a standstill. In such a situation, the cotton contract of NCDEX is proving to be very important and profitable for the cotton traders.
CMD said that this year most of the ginners have stored a large stock of cotton seeds. The crop is expected to be larger this time than in previous years — while 312 lakh bales were produced last year, this year's production is estimated at 317 lakh bales. Due to increase in crop, the price of seeds has declined. In such a situation, it is the right time for farmers to hedge their stocks to keep them safe. Both cotton and cake contracts of NCDEX can prove to be very useful for this purpose.
He further said that according to the recent statement given by Union Minister Piyush Goyal, India has also received the same offer for the trade deal which Bangladesh has received. If this agreement materializes, cotton imported from America may become duty-free. Currently, India has imported about 35–40 lakh bales of cotton by January 2026, and if this deal is implemented, an additional import of 10–15 lakh bales is possible. This may increase pressure on the domestic cotton market, but it will not have a major impact on farmers as CCI (Cotton Corporation of India) has already purchased about 95–97 lakh bales of cotton at MSP ₹8100 per quintal.
Therefore, it can be said that this trade deal will prove to be very positive for the entire textile industry.
He further said that ginners have made adequate stock of both cotton seeds and cotton bales this time. During the January surge, all ginning factories had increased stocks — currently ginners have stocks of about 35-40 lakh bales and CCI has stocks of 95 lakh bales. Cotton prices have fallen by about 10% in the last 15 days. In such a situation, NCDEX platform is very useful for ginners, because there is sufficient liquidity available in cotton cake.
CMD suggested
“If a ginner has 200 trucks of cotton seed stock, he can hedge by selling 50–100 lots. This will keep his stock safe. This is an excellent platform for hedging and every ginner should use it to stay safe from risk.”
