On Wednesday, the Indian Derivatives Commodity Exchange (NCDEX) said it had asked the warehouse service provider not to deposit new consignments of cargo due to complaints about real-time traders buy shoddy pepper.
“We have informed our warehouse service providers not to pay deposits for new pepper shipments, after checking we found that certain materials did not meet the requirements of the contract. This issue is currently under investigation, ”said Anand Kumar, head of NCDEX's Services Division, in the PTI newspaper.
Market sources estimate that real traders have deposited about 2,000 to 2,500 tons of pepper worth about Rs 1 billion.
Specifications for the quality of goods delivered via NCDEX are Malbar type 1 (MG1), 11% moisture, 2% pepper, 1% foreign matter, mold and oil use, known to is the choice type.
There is a concern that all poor quality goods do not meet the specifications that were traded on the exchange and prepare for delivery.
“The exchange will hold the warehouse service provider responsible for the poor quality that has been brought to market,” said Mr. Kumar.
Immediately after the complaint, NCDEX immediately conducted a detailed inspection of goods, the source said.
Indian pepper quality is always the best in the world. Prices in India have also become the reference base for global pepper prices. Therefore, the price on NCDEX is always closely monitored and plays an important role in identifying pepper prices globally.
The exchange, in consultation with the Commission on the Future Markets (FMC), needs to take strict action and impose strong penalties as a message to the industry that such an incident is unlikely. acceptable, commodity broker Rakesh Sheth said.
India produces about 50,000 tons of pepper a year and is mainly consumed in the domestic market.
Vietnam and Indonesia are competitors to pepper in the world market, Sheth added.
Source Business Line / Giacaphe.vn
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