The Hindu Business Line : Cardamom futures to be launched today

GEOJIT and JRG, a brokerage house, are all set to launch the world's first trading in cardamom futures through the National Multi-Commodity Exchange on Wednesday.

Mr Navin B. Chawla, Secretary in the Ministry of Consumer Affairs, Food and Public Distribution, will be launching the first-ever cardamom futures contract through Geojit terminal at Kochi. Contracts of other major pulses like tur/arhar, urad, moong and masar will also be inaugurated, Mr C.J. George, Managing Director of Geojit Securities, said at a press conference.

As in rubber, over 90 per cent of the cardamom growers are small growers and trading and price mechanism has always proved difficult for them.

"Efficient price discovery for cardamom farmers has always been difficult because of the unorganised form of cardamom trading. This new initiative from Geojit is therefore in line with its objective of offering trading and information facilities to the agricultural sector," Mr C.J. George said.

Trading and delivery units in cardamom will be in 100 kg. The quotation unit is one kg and the ticker size is one rupee. The trading and delivery units for the pulses is one tonne, the quotation units being 100 kg and ticker size one rupee.

For both cardamom and pulses there is a price band of five per cent above and below the last traded price and 10 per cent band over the last closing price. Trading in any contract month will start on the 16th day of the month, two months prior to the month for which the contracts are drawn.

The contract will expire on the 15th day of the delivery month. Squaring up of position will be permitted between the 10th and 15th of the delivery month. From the 10th to the 15th of the delivery month, the seller can tender receipts of the Central Warehousing Corporation for settlement and the warehouse receipt will be accepted for settlement at the closing price of the previous day.

Contract specification for Aleppey Green Bold grade of cardamom include that the colour should be deep green, green or light green. Tolerance levels for defects like empty and malformed capsules is two per cent by count and immature and shrivelled capsules are two per cent by weight. The delivery centres for Tur/arhar (pigeon peas) of special grade and specification as well as for tur white are at Central Warehousing Corporation Delhi (Basis Centre) and CWC Nagpur. Delivery centre for urad (black gram) of special grade and specification is at CWC Delhi and CWC Akola. Delivery centre for Masoor (red lentils) of grade and specifications is at CWC Delhi and CWC Bhopal.

For these major pulses, National Multi-Commodity Exchange of India Ltd has announced two simultaneous monthly contracts for April and May 2004. JRG, meanwhile, has begun discussions with traders and growers for conducting the online trade, its Managing Director, Mr Giby Mathew, said.

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