12% of coriander stock defective: NCDEX

The audit was to check quality of the coriander stocks deposited in the approved warehouses

The National Commodity & Derivatives Exchange (NCDEX) has said on Tuesday that 12 per cent of coriander stock failed to pass the test in an independent audit commissioned by the exchange.

Stored in NCDEX accredited warehouses in RamganjMandi and Kota, these storages are managed by National Bulk Handling Corporation (NBHC).

Responding to the concerns around quality of the coriander stocks deposited in the approved warehouses, NCDEX conducted a 100 per cent sampling and audit of the stocks deposited at the NBHC warehouses at Kota and Ramganj Mandi.

Testing of all the 2240 tonnes has shown that 1410 tonnes conforms to the exchange specifications on all parameters. Out of the remaining 830 tonnes, 270 tonnes failed on the parameter of damaged / discolored seeds and 10 tonnes had splits above the acceptable level, while 10 tonnes had weevilled seeds marginally above 0.5 per cent. The balance stocks of 540 tonnes showed moisture slightly exceeding permissible level of 9 per cent.

"NCDEX is fully committed to ensuring good delivery of commodities. We remain vigilant about the stocks deposited in our warehouses and have suitable checks and controls in place to ensure adherence to our norms. The trust of our participants and the safety and quality of our deliveries is our foremost priority. There is absolutely nothing to worry for the buyer on the quality front. Having completed the independent audit, we find that there isn't a quality issue at the level as it as was made out to be. We have found some issues which we will ensure will get addressed through the remat testing process of the buyers," said Samir Shah, MD & CEO, NCDEX.

The exchanges clarified that participants taking delivery of coriander on the exchange platform can utilize the remat assaying facility of the platform to verify the quality goods received in delivery. Any variance of quality from that specified by the Exchange is fully compensated, it added.

Meanwhile, NCDEX has taken cognizance of the findings and has instructed NBHC to immediately remove the defective stocks from the approved warehouses.