Mumbai: Commodity regulator Forward Markets Commission (FMC) has sought a report from the National Commodity and Derivatives Exchange Ltd (NCDEX) on jeera traders’ complaints that their goods were being rejected, an official said on 29 May.
The NCDEX received complaints from traders of Unjha, a jeera hub in Gujarat, that exchange-accredited warehouses were rejecting goods on quality grounds. The exchange’s 12-member product panel, which advises on quality specifications, sent a letter on Friday saying they intended to resign en masse if the consignments continue to be rejected.
The committee comprising traders has six members from Unjha and the rest from other parts of India.
“We have asked for a report on the jeera issue from NCDEX. After receiving the report, we will decide if any intervention is required from the authority,” Rajeev Agarwal, a member of FMC, said.
Members of the committee say the exchange was not accepting jeera delivery citing poor quality, while it was good enough to be exported. However, an NCDEX official said if delivery was not happening, then the prices should have gone up. The exchange had delivered about 1,600 tonnes of jeera in May and currently has 6,500 tonnes in its warehouses, he said.
“We have kept FMC informed about the happenings,” said the official, who did not want to be identified.
The exchange has also scheduled a meeting with the product committee members and representatives of National Collateral Management Services Ltd, its unit that manages warehouses.