India Opens Cardamon and Pulse Futures

NEW DELHI - Feb 10/04 - SNS -- Futures trading in cardamom and pulses has been approved for the National Multi-Commodity Exchange of India Ltd. (NMCE) and is set to begin February 11.

Shri Navin B. Chawla, Secretary, Department of Consumer Affairs will formally inaugurate futures trading in cardamom and pulses at Cochin on Wednesday, February 11, 2004.

Cardamom is grown in the evergreen forests of South India with Kerala being the major producing state accounting for 70% to 75 % of the total domestic production. Introduction of futures trading in this commodity will protect the farmers against the risk of uncertainty of production and unstable prices by ensuring efficient price discovery and minimizing price risk.

Cardamom futures markets will allow its exporters to hedge their anticipated purchase by temporarily substituting for an actual purchase until time is appropriate to buy on the physical market. The export of cardamom during 2001-02 was 900 metric tons (MT) valued at Rs. 55.86 crore compared to 1,545 MT valued at Rs. 84.68 crore during the previous year. NMCE is the first online commodity exchange in the world to introduce futures trading in cardamom.

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