The Multi Commodity Exchange of India (MCX) is launching futures trading in cardamom.With this, the traders will be able to compare the prices at the auction centres at MCX and then decide where to sell. Commenting on the launch, Jignesh Sha, MD,MCX,said that the launch of cardamom futures would "provide a reliable, transparent and efficient price risk management tool for cardamom growers, traders and exporters." The trading unit for cardamom contract is specified at 100 kg.
The grade specified for trading in MCX is cardamom 7mm and above.The price quotation will be ex-Vandanmedu and the tick size of the contract is 10 paise per kg with daily price limit of 5%. Each contract would expire on the 15th day of the contract month.There would be an initial margin of 7%. Delivery will be in lots of 100 kg at exchange approved Kerala State Warehousing Corporation specialised warehouse located at Vandanmedu in Idukki district of Kerala.The total cardamom production in the country is around 14,000 tonnes.