You are here: Home » Economy & Policy » News
Business Standard

NCDEX allays jeera traders' fears of poor quality dispatch to warehouses

Traders were concerned over 'high-moisture' jeera crop, on account of incessant rainfall

Dilip Kumar Jha  |  Mumbai 

Jeera

The National Commodity & Derivatives (NCDEX) has issued a clarification saying 62 per cent of the total stock to the exchange-registered in Unjha, Gujarat, matched up to its quality standards after concerns were raised over the dispatch of sub-standard by traders.

Citing incessant rainfall as the reason behind poor quality jeera, traders feared the delivery of sub-standard stock in several

Anticipating problems in the delivery and availability of the product, prices hit a lifetime high in the benchmark spot Unjha market to trade at Rs 19,623 a quintal on July 31. This was, however, followed by a marginal decline in prices to Rs 19,236 a quintal on Friday amid high volatility.

The said that traders in the value chain tendered 2,347 tonnes of for delivery in Unjha warehouses, of which around 1,471 tonnes were found to be in line with NCDEX's quality standard. Hence, the accepted deposits of 1,471 tonnes of in the registered with it since early August.

The harvest season for ends in April and sowing starts in October. Peak arrivals in the physical market gradually tapers off during August and September.

said that the has facilitated the availability of 3,670 tonnes of warehousing capacity for traders in Unjha markets and this, it says, would be more than enough to meet the needs of prospective depositors. For traders to avail this facility, the has provided online warehouse reservation system to book space for deposits in a fair and transparent manner.

To address concerns over crop quality, provides a unique facility to each buyer enabling them to opt for assaying at the time of withdrawal of stocks that they have received through the settlement system. Recipients, who would want to avail the opportunity, will have to exercise the option before the delivery date (EDD) of the specific lot.  The subsequently makes sure that the warehouse service provider (WSP) compensates the buyer, in case there are any deficiencies in quality.

First Published: Sat, September 16 2017. 22:15 IST
RECOMMENDED FOR YOU