FMC orders probe into NCDEX jeera trade irregularity
After observing a successful bandh on Saturday, cuminseed (jeera) traders of Gujarat are waiting for the Centre's intervention in the matter.
By TNN |
AHMEDABAD: After observing a successful bandh on Saturday, cuminseed (jeera) traders of Gujarat are waiting for the Centre's intervention in the matter. The traders are protesting the issue of pricing and quality of jeera delivered at the National Commodity and Derivatives Exchange (NCDEX).
Jeera traders claimed that a huge portion of the 900 tonnes of jeera at the Thar Warehouse in Jodhpur, valued at Rs 7.85 crore, is of poor quality. In Jodhpur godown, at least 50,000 bags were of inferior quality, according to the Unjha traders.
Those who have taken delivery complained that they have been straddled with jeera less than Rs 80 kg quality. They say the last traded price (LTP) of jeera September contract was around Rs 97 kg, while the contract settlement rate was Rs 113.40 per kg.
They attribute this differential in LTP and settlement price to the inferior quality of jeera at the warehouse managed by NCDEX. "We will not trade in jeera futures until a solution to our problems is found. We want jeera trading to be banned from futures markets be it NCDEX or any other exchange," said Unjha Marketyard Merchant Association president Manubhai Patel.
Forward Market Commission chairman BC Khatua told ET: "I have received a lot of complaints from jeera traders. An inquiry has been ordered and FMC officials will come up with their findings in three to four days." The aim is to find an amicable solution and not ban any commodity, he added.
Meanwhile, FMC has send a circular to the exchanges for revised margins in cuminseed and pepper contracts with effect from commencement of trades on Monday, to be collected on real time basis. While the initial margin, subject to a minimum margin, remains 7.5% for value-at-risk (VaR) for the two commodities, the permissible additional margin will be 5%. The special margin of 6% for the buyers has been removed. This move is aimed to do away with speculators.
Jeera traders claimed that a huge portion of the 900 tonnes of jeera at the Thar Warehouse in Jodhpur, valued at Rs 7.85 crore, is of poor quality. In Jodhpur godown, at least 50,000 bags were of inferior quality, according to the Unjha traders.
Those who have taken delivery complained that they have been straddled with jeera less than Rs 80 kg quality. They say the last traded price (LTP) of jeera September contract was around Rs 97 kg, while the contract settlement rate was Rs 113.40 per kg.
They attribute this differential in LTP and settlement price to the inferior quality of jeera at the warehouse managed by NCDEX. "We will not trade in jeera futures until a solution to our problems is found. We want jeera trading to be banned from futures markets be it NCDEX or any other exchange," said Unjha Marketyard Merchant Association president Manubhai Patel.
Forward Market Commission chairman BC Khatua told ET: "I have received a lot of complaints from jeera traders. An inquiry has been ordered and FMC officials will come up with their findings in three to four days." The aim is to find an amicable solution and not ban any commodity, he added.
Meanwhile, FMC has send a circular to the exchanges for revised margins in cuminseed and pepper contracts with effect from commencement of trades on Monday, to be collected on real time basis. While the initial margin, subject to a minimum margin, remains 7.5% for value-at-risk (VaR) for the two commodities, the permissible additional margin will be 5%. The special margin of 6% for the buyers has been removed. This move is aimed to do away with speculators.
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