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Mumbai, February 14, 2006: Multi Commodity Exchange of India Ltd. (MCX), India's leading commodity exchange announced the launch of Cardamom futures. With this launch traders will be able to check prices at auction centres along with MCX prices and then decide where to sell.
Commenting on the launch, Mr. Jignesh Shah, Managing Director and CEO, MCX said, '"Cardamom is one of the most exotic and highly prized spices of India. Major reforms have taken place in the commodity markets over the past few years and this launch will provide a reliable, transparent and efficient price risk management tool for cardamom growers, traders and exporters."
"The ultimate objective of this initiative is to reap the economies of scale and scope not only for its own sake but also to face the challenges thrown up by the opening up of the global market."
The grade specified for trading in MCX is cardamom 7mm and above with a litre weight of 400grms and above. The trading unit for Cardamom contracts is specified at 100 kgs (One quintal) by the exchange. The price quotation will be Ex- Vandanmedu, Dist. Idukki, Kerala. The tick size of the contract is 10 paise/kg with a daily price limit of 6%.
Trading in a contract month will open on the 16th of the month and would run for a period of 5 months. Each contract would expire on the 15th day of the contract month. There would be an initial margin of 7%. Delivery will be in lots of 100 kgs (one quintal) at exchange-approved Kerala State Warehousing Corporation specialized warehouse located at Vandanmedu in Idukki district of Kerala. Vandanmedu is, the main cardamom growing and trading centre in Kerala and has the best climatic condition suited for the efficient storage of cardamom.
The total annual production of cardamom in the country is about 14,000 tons, which arrives from August to May. The main Cardamom varieties are Alleppey Green Extra Bold 7mm and above (AGEB) & Alleppey Green Bold 6.0mm (AGB).
About 90% of the produce is consumed with in the country while remaining produce is exported, with Saudi Arabia and Japan being our major importers.
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About MCX
: MCX (ISO 9001:2000), an independent and de-mutualised multi-commodity exchange with permanent recognition from the Government of India, provides state-of-the-art, online trading, clearing and settlements to Indian commodity futures markets. Key shareholders of MCX include Financial Technologies (India) Ltd. (FTIL), SBI (India's largest commercial bank), National Stock Exchange, NABARD, Union Bank of India, State Bank of Hyderabad, State Bank of Indore, State Bank of Saurashtra, SBI Life Insurance Co. Ltd, Canara Bank, Corporation Bank, HDFC Bank, Bank of India and Bank of Baroda.
MCX offers futures trading in 56 commodities. It has pioneered futures trading in Crude, Steel, Cashew and Mentha Oil, in India, and Plastic futures in Asia. It is India's largest and the world's third largest bullion exchange. Over 1000 member clients, at 500 locations, operate through 5000 MCX terminals. MCX clocks an average daily turnover of over INR 4000 crore.
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