Professor, Tamil Nadu Agricultural University, Anbil Dharmalingam Agricultural College and Research Institute, Trichy, India
Online published on 7 September, 2015.
Commodity Futures and Derivatives have been well recognized in the context of price discovery and price risk management. The present study is an investigation into the agricultural commodity futures, taking cotton as a case. An econometric analysis was carried out to evaluate the efficiency of a sample set of markets in price discovery. The results show that the price discovery does not occur in the cotton futures. The major ills that retard the growth of futures markets are identified and discussed. The policy directives are evolved to make the futures and derivatives a more vibrant segment of the economy.
