The Multi Commodity Exchange of India Limited (MCX) has announced the official launch of Cardamom Futures Contracts starting July 29, 2025, in an important step toward strengthening India’s spice trade ecosystem. The move is expected to bring greater transparency in price discovery, offer a robust hedging mechanism, and empower small and medium-scale farmers, particularly in southern India where cardamom cultivation is prevalent.

The announcement was made via a press release issued from Puttady, Kerala, which is one of the key spice trading hubs in the country. The launch date coincides with the commencement of trading in these futures, aimed at revolutionizing how cardamom prices are determined and risk is managed in the industry.

Contract Specifications and Trading Details

The Cardamom Futures Contracts will initially be available with expiry months of August, September, October, and November 2025. Trading will be open Monday to Friday from 9:00 AM to 5:00 PM. Each contract will represent a compulsory delivery of 100 kilograms of cardamom, and prices will be quoted in ₹ per kilogram, benchmarked on ex-Vandanmedu pricing (Idukki district, Kerala).

To ensure stability in trading, the Daily Price Limit (DPL) has been set at 4%, with an additional 2% band that may be triggered after a 15-minute pause if the initial limit is breached. The Initial Margin Requirement will be at least 10%, or determined by the SPAN (Standard Portfolio Analysis of Risk) system, with an additional 1% Extreme Loss Margin (ELM) made mandatory.

These structured risk controls and physical delivery mechanisms are expected to foster price discipline, reduce volatility, and enhance market integrity.

Vision Behind the Launch: Leadership Comments

Ms. Praveena Rai, Managing Director & CEO of MCX, emphasized the importance of the launch by stating:

“The launch of Cardamom Futures is a pivotal development for India's spice industry. Cardamom is a premium commodity with global demand, and this contract will offer growers, traders, and exporters a reliable platform for hedging price risk, enhancing income certainty, and driving transparent price discovery. We are proud to extend our product portfolio to serve the needs of spice growers and industry and support the government's vision of a digitally enabled, farmer-inclusive agri-economy.”

Adv. Sangeetha Viswanathan, Chairperson of the Spices Board, Ministry of Commerce & Industry, Government of India, added:

“We congratulate MCX on the launch of the cardamom futures contract. The contract will promote greater price transparency and prove to be an efficient risk management tool for the entire cardamom value chain.”

These endorsements from regulatory leadership highlight the significant institutional backing and sectoral demand for a futures market in spices, particularly cardamom.

Benefits to Stakeholders and the Spice Ecosystem

Cardamom, often referred to as the "Queen of Spices," is one of India’s most valuable spice exports. However, due to its price volatility and dependency on global factors, farmers and traders often struggle to forecast earnings or mitigate losses. The Cardamom Futures Contracts on MCX aim to solve this by offering:

• Price Transparency: A structured exchange mechanism where real-time price discovery happens through open trading.

• Risk Management: Enables stakeholders to hedge against unfavorable price movements.

• Market Access: Provides a national platform to farmers, cooperatives, exporters, and traders beyond local mandis.

• Liquidity Boost: Brings more players into formal trading and enhances capital efficiency in the spice value chain.

• Fair Practices: Encourages formalized trade mechanisms over opaque traditional practices.

Strategic Significance for MCX

With this launch, MCX continues its mission to innovate and expand the bouquet of agri-commodity offerings on its platform. Already commanding a 98% market share in commodity futures trading in FY24–25 and ranked as the world’s largest Commodity Options Exchange by volume (FIA 2024), the exchange is deepening its presence in India’s agricultural sector.

MCX’s product diversification across bullion, energy, metals, agri commodities, and sectoral indices, now includes a critical commodity that supports India’s spice economy, further demonstrating alignment with national goals for a transparent, digitized, and inclusive agri-market ecosystem.

About MCX

Founded in 2003, the Multi Commodity Exchange of India Ltd. (MCX) is India’s premier commodity derivatives exchange. It has become a benchmark institution for commodity price discovery and risk management, offering trading in a wide range of products. Headquartered in Mumbai, MCX operates under the regulatory framework of SEBI and maintains strategic partnerships with global exchanges and trade associations.

Conclusion

The launch of Cardamom Futures Contracts by MCX marks a significant milestone in the evolution of India's spice trade infrastructure. It offers small-scale farmers, traders, exporters, and cooperatives a transparent and efficient tool for managing price volatility, planning investments, and accessing fair value.

This initiative reflects MCX’s continued leadership in building a modern, inclusive, and globally aligned commodity market in India. With regulatory backing from the Spices Board and Ministry of Commerce, this move is poised to strengthen India’s position as a global leader in spice production and trading, starting with the aromatic and high-value commodity—cardamom.

As trading begins, industry stakeholders will be closely monitoring market participation, price trends, and delivery efficiency. The success of this product may pave the way for more spice-based and agriculture-linked futures contracts, further enhancing MCX’s role in agri-market reforms and digital transformation.

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