MCX has introduced Cardamom Futures Contracts, effective July 29, 2025, aiming to enhance pricing transparency and assist traders and farmers—particularly in South India—in better managing their risks. This move is expected to create a more streamlined and reliable trading environment for one of India’s most traded spices.
Initially, contracts will be available for expiry in August, September, October, and November 2025. Trading for these will run from Monday to Friday, between 9:00 AM and 5:00 PM. Each contract will represent 100 kilograms of cardamom and be quoted in rupees per kilogram, with the benchmark pricing based on the ex-Vandanmedu (in Kerala’s Idukki district) rate.
This is a compulsory delivery contract, which means physical delivery of cardamom is involved at the end of the contract period. To manage volatility, a daily price limit of 4% will be in place. If this limit is hit, trading will pause for 15 minutes, after which an additional 2% band may be allowed. Margins start at a minimum of 10% or as required by SPAN, along with a fixed 1% Extreme Loss Margin.
With this launch, MCX is offering a structured platform that could help formalize spice trading further and give stakeholders—especially smaller farmers—better access to national markets.
