Financial Technologies promoted National Spot Exchange (NSEL) has confirmed having 1.04 lakh tonnes of castorseed stock at Kadi, Gujarat, delivery point.
In a statement NSEL said that Kadi has total six silos with an overall storage capacity of 50,000 tonnes. Apart from that the location also has three warehouses and open storage space of 60,000 sq ft with accumulative storage capacity of 50,000 tonnes and 20,000 tonnes respectively. Thus, accumulative storage facility of NSEL at Kadi stood at 1.20 lakh tonnes.
Dispelling the allegation of overstating the stocks at one lakh tonnes of castor seed in Kadi by a section of media, NSEL said that the existing stock of 1.04 lakh tonnes is for 6715 participants who actively use NSEL’s online facility to trade in castorseed. Further, there are four leading caster seed crushers, processors and exporters in India and Jayant Agro Organics and N K Industries are the leading exporters using NSEL platform, the statement said.
NSEL got the e-market license for Gujarat on October 10, 2007 following which the company commenced operation in castor seed on October 15, 2008. Between October 2008 and July 2013, caster seed farmers’ contracts at 28 various locations and traders’ contracts at 10 locations across Gujarat. NSEL paid Gujarat APMC mandi cess amounting to Rs 2.29 crore , the highest by any e-market licensee. Participants on NSEL platform paid value added tax in castor seed of approx Rs 340 crore over the last five years.
Total delivery of caster seed handled by NSEL during the last five years stood at 5.76 lakh tonnes out of India’s total annual production of 16.76 lakh tonnes.
The exchange has also not witnessed any delay or default in delivery or payment by any participant over the last five years.
The NSEL platform has also been instrumental in benefiting farmers by increasing the price realization over 1.5 per cent to 2.5 per cent higher than mandi price as certified by Gujarat State Agriculture Marketing Board. Over 1.65 lakh farmers benefited from the e-trade in castor seed, the statement added.