Multi Commodity Exchange of India (MCX) announced the launch of Cardamom Futures Contracts effective 29 July 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.