MCX to roll out cardamom futures trading soon

Multi Commodity Exchange of India (MCX) is set to start cardamom futures trading soon. "We have prepared to commence trading and the exact date will be announced soon," sources at MCX told Business Standard.

The official inauguration will take place by the last week of January or in early February 2006, with a ceremony to be held at Vandanmedu in Indukki district of Kerala, the largest auction trading centre for cardamom.

Seven-eight mm grade cardamom is used in trading and the minimum lot will be one quintal. National Multi-Commodity Exchange of India (NMCE) is already into cardamom contract trading and the entry of MCX will add a new platform for the traders and growers.

MCX had already acquired a warehouse of Kerala State Warehousing Corporation at Vandanmedu exclusively for stocking cardamom. The specialised warehouse will have a cpapacity of 200 tonne.

MCX expects more business from Kerala as cardamom is an exclusive commodity of the state. MCX had already conducted a campaign programme to popularise its trading in cardamom and the response was fairly good according to experts. In Idukki district alone the exchange conducted 38 awareness programmes in order to attract more traders and farmers to contract trading.

Meanwhile, according to trade estimates, total production of cardamom will be 13,000-13,500 tonne in the current season, up by around 1,500-2,000 tonne. The normal annual production is 11,000 tonne and export is around 1,600-1,800 tonne.