The Multi Commodity Exchange (MCX) has announced the launch of Cardamom Futures Contracts, effective July 29, 2025, marking a key development for India’s spice trading ecosystem. This initiative aims to enhance price discovery, improve risk management, and empower small and medium-scale farmers, particularly in South India, along with traders nationwide.

Initially, MCX will offer Cardamom Futures with contract expiries in August, September, October, and November 2025. Trading will be conducted Monday through Friday, between 9:00 AM and 5:00 PM. Each compulsory delivery contract will represent 100 kilograms of cardamom, with pricing quoted in ? per kilogram, based on ex-Vandanmedu (Idukki district, Kerala) benchmarks.

The contracts will follow a Daily Price Limit (DPL) structure, beginning with a 4% cap. If this limit is breached, an additional 2% band will be triggered after a 15-minute cooling period. Initial margin requirements will be set at a minimum of 10% or determined by SPAN, with a mandatory 1% Extreme Loss Margin.

Commenting on the launch, Ms. Praveena Rai, Managing Director & CEO of MCX, stated, “The introduction of Cardamom Futures is a landmark step for India’s spice sector. As a high-value commodity with global demand, cardamom now has a dedicated platform to support growers, traders, and exporters in managing price volatility. This will help enhance income predictability and strengthen transparent price discovery. We are proud to support the government’s goal of a digitally integrated, farmer-centric agri-economy.”

Adv. Sangeetha Viswanathan, Chairperson of the Spices Board, Ministry of Commerce & Industry, Government of India, added, “We commend MCX for launching the cardamom futures contract. It will improve price transparency and serve as an effective risk management tool for stakeholders across the cardamom value chain.”

With this launch, MCX reaffirms its commitment to innovation and efficiency in India’s agricultural commodity markets. The Cardamom Futures contract is poised to formalize trading practices, enhance market liquidity, and deliver meaningful benefits to all stakeholders in the spice industry.