The exchange has set margin requirements and position limits to manage risk. The delivery centre is located in Vandanmedu, Idukki.
| Photo Credit:
Jomon Pampavalley
The Multi-Commodity Exchange of India has announced the launch of cardamom futures contracts from Tuesday. The exchange will initially launch contracts for August, September, and October simultaneously, said a circular.
MCX discontinued the cardamom futures contract in 2021, following a circular issued by SEBI. The exchange has now issued a notification regarding the launch of cardamom futures contracts.
The symbol of the cardamom futures contract is ‘CARDAMOM’. The trading unit will be 100 kg, and the maximum order size will be 5000 kg. The tick size or the minimum price movement will be ₹1 per kg.
Margins, volatility controls in place, says exchange
The initial margin will be a minimum of 10 per cent or based on the standard portfolio analysis of risk. In case of additional volatility, “an additional margin (on both buy and sell side) and/or special margin (on either buy or sell side) at such a percentage, as deemed fit, will be imposed in respect of all outstanding positions,” the circular said.
The maximum allowable open position for individual clients will be 100 tonnes, and that for a member will be 1,000 tonnes or 15 per cent of the market-wide open position, whichever is higher. The delivery centre is located at the exchange’s warehouse in Vandanmedu, Idukki.
Several studies have shown that the futures market has helped stabilise prices in the spot market. Futures prices serve as a reference point, enabling farmers to secure better prices for their crops. Efficient price discovery and dissemination have brought more transparency in physical market transactions. The futures market provides a platform for exporters to readily obtain export-quality cardamom.
Published on July 28, 2025
