MCX Introduces Cardamom Futures Contracts
MCX, the Multi Commodity Exchange, has announced the launch of cardamom futures contracts aimed at improving price discovery and ensuring better price risk management in the spice industry. The exchange plans to offer futures contracts with expiry dates in August, September, October, and November 2025, with trading set to commence on July 29.
Benefits of the Futures Contracts
The cardamom futures contracts are designed to provide growers, traders, and exporters with a reliable platform for hedging price risk, enhancing income certainty, and driving transparent price discovery. Cardamom is a premium commodity with significant global demand, making these contracts crucial for the industry.
According to an official statement, the futures contracts will represent 100 kg of cardamom, with prices quoted based on ex-Vandanmedu rates in Idukki district, Kerala. This move is expected to benefit the entire cardamom value chain by promoting price transparency and serving as an efficient risk management tool.
MCX’s Managing Director and CEO, Praveena Rai, expressed the company’s commitment to expanding its product portfolio to support the needs of spice growers and industry, aligning with the government’s vision of a digitally enabled, farmer-inclusive agri-economy.
Spices Board Chairperson Sangeetha Viswanathan also lauded the initiative, emphasizing how the futures contracts will contribute to greater price transparency and risk mitigation within the cardamom market.
MCX’s Offerings
MCX offers futures contracts for both agricultural and non-agricultural commodities, catering to a diverse range of market participants. The introduction of cardamom futures contracts adds to the exchange’s comprehensive product offerings, further solidifying its position in the commodities market.
For more information on this development, visit the official MCX website.
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