Cardamom contract welcomed

Cardamom growers of Kerala today welcomed the Multi Commodity Exchange's (MCX) launch of 6 mm cardamom contracts. They added that the contracts would provide them an opportunity to hedge in the futures market.

The state's growers, especially those from Idukki, have since long been demanding the introduction of 6 mm and 8 mm grade contracts. When the MCX had launched cardamom futures almost 19 months ago, trading was limited only to the 7 mm grade. The Forward Markets Commission (FMC) had rejected the growers' plea to launch 6 mm grade contracts, citing lower trade volumes.

Today's launch has come as an impetus to growers, given that the 6 mm grade makes up 40 per cent of the domestic production. The 7 mm grade, which accounts for 30 per cent of the local output, along with the new 6 mm contracts will make up 70 per cent of the production, providing a wider scope to growers, traders and exporters to hedge their stocks.

The growers have renewed their demand to launch 8 mm grade futures. The 8 mm variety constitutes about 15 per cent of the domestic production.

Meanwhile, e-auction in cardamom trading is expected to be introduced in the current month. Union Minister of State for Commerce Jairam Ramesh, in his recent visit to the state, had assured the introduction of e-auction during this month.