MCX starts offering Cardamom Futures 

Mumbai, 29 July 2025: Multi Commodity Exchange of India Ltd (MCX) has formally launched Cardamom Futures Contracts, with trading commencing from today. The initiative aims to bring greater transparency in price discovery, offer effective hedging tools, and increase participation across the high-value cardamom trade chain. The move is expected to significantly benefit both farmers and spice traders, marking a major stride in India’s agricultural derivatives market, MCX said.

Cardamom Futures Contracts Introduced to Tackle Price Volatility and Support Farmers

The newly launched cardamom contracts come with a defined trading structure to ensure transparent transactions and risk coverage. The key features of the contracts are as follows:

• Launch Date: July 29, 2025
• Expiry Months: August, September, October, and November 2025
• Trading Hours: Monday to Friday, from 9:00 AM to 5:00 PM
• Contract Size: 100 kilograms
• Pricing Basis: ₹ per kg, ex-Vandanmedu (Idukki district, Kerala)
• Settlement: Compulsory Delivery
• Daily Price Limit (DPL): 4%, with an additional 2% band post a 15-minute pause
• Initial Margin: Minimum 10% or as determined by SPAN
• Extreme Loss Margin: 1% mandatory

This structured approach is designed to safeguard participants against sharp price fluctuations while promoting systematic trade practices.

Strategic Step to Formalise India’s Spice Trade and Empower Growers

Highlighting the broader vision behind the launch, Praveena Rai, Managing Director and CEO of MCX, stated:

“The launch of Cardamom Futures is a pivotal development for India’s spice industry. Cardamom is a premium commodity with global demand, and this contract will offer growers, traders, and exporters a reliable platform for hedging price risk, enhancing income certainty, and driving transparent price discovery.”

This contract is expected to address long-standing concerns related to price unpredictability and income instability in the cardamom sector.

Industry Endorsement Adds Credibility and Confidence in New Futures Product

Adv. Sangeetha Viswanathan, Chairperson of the Spices Board of India, welcomed the initiative and commented:

“We congratulate MCX on the launch of the cardamom futures contract. The contract will promote greater price transparency and prove to be an efficient risk management tool for the entire cardamom value chain.”

Such institutional support is likely to boost market confidence and attract broader participation from stakeholders, including small growers and exporters.

Broader Impact Expected as MCX Deepens Agri-Derivatives Market Reach

With this launch, MCX furthers its commitment to modernising India’s agricultural commodity ecosystem. By integrating digital platforms and regulated futures trading, the Exchange aims to:

• Improve liquidity in the spice market
• Encourage fair and consistent pricing practices
• Increase financial resilience among farmers and traders
• Expand market access for small and medium participants

This strategic expansion into agri-derivatives is part of MCX’s broader mission to diversify commodity offerings and deepen India’s formal commodity market infrastructure.

MCX Continues Market Leadership with Focus on Innovation and Inclusion

Multi Commodity Exchange of India Ltd (MCX), India’s leading commodity derivatives platform, holds over 98% market share in futures trading for FY25. Since its inception in 2003, MCX has played a critical role in price discovery and risk management. Globally recognised as the largest commodity options exchange (FIA, 2024), MCX enables trading across bullion, base metals, energy, agriculture, and indices.

With the launch of cardamom futures, MCX reinforces its role as a catalyst for structured and inclusive growth in India’s commodities ecosystem.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/2c9a728f-6007-4902-b8ea-401284184990.pdf

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