MCX announced the launch of Cardamom Futures Contracts effective July 29, 2025. This significant step is aimed at improving price discovery, ensuring better price risk management, and strengthening the spice trading ecosystem, especially for small and medium-scale farmers in South India and traders across India. The Exchange will initially offer Cardamom futures contracts with expiry in August, September, October, and November 2025, with trading beginning on July 29, 2025.
Trading will be open Monday to Friday, from 9:00 AM to 5:00 PM. This compulsory delivery futures contract will represent 100 kilograms of cardamom, with quotes in per kilogram, based on ex-Vandanmedu (Idukki district, Kerala) pricing. The contracts will follow a Daily Price Limit (DPL) structure, with an initial limit at 4% with a potential additional 2% band after a 15-minute pause if the initial limit is breached.
Initial margin requirements will be a minimum of 10% or as per SPAN, with a mandatory 1% Extreme Loss Margin. With this launch, MCX reiterates its commitment to bringing innovation, access, and efficiency to India's vibrant agricultural commodities market. The Cardamom Futures contract is expected to significantly benefit stakeholders by foster an formalized trade practices and improving liquidity.
