MCX to accept delivery of 6 mm cardamom

Mumbai, August, 07: MCX has decided to accept delivery of 6 mm cardamom from the September contract onwards, based on feedback received from planters, farmer organizations and traders. Cardamom futures contracts were introduced on February 14, 2006. Since then the contracts have witnessed participation from various market stakeholders across the country. The contracts clock an average daily turnover of Rs. 12 crore.

Mr. Joseph Massey, DMD, MCX, said, “A total of 120 MT of delivery worth Rs 4.6 crore has been facilitated on the exchange platform till date. From September contract onwards, we will also accept 6 mm and above grade of cardamom but at a 15% discount to 7 mm. Generally around 30% of the crop is above 7 mm and 40 – 45 % is 6 - 7 mm. The move will help farmers and traders to hedge their risk and receive maximum benefit during the season. It will also enable increased deliveries at the exchange.”