After coriander, quality of cocud worries Sebi

MUMBAI: Sebi has taken serious note of quality issues in cotton seed oilcake (cocud) on NCDEX and dispatched a team to Rajasthan to examine sample results. If Sebi finds quality diverging from specifications it will take “necessary action“ against warehouse services provider, a person in the know told ET.

"Sebi is examining quality issues in cocud, along with coriander......(it is) awaiting results and will take requisite action if warranted," he said. The buyer could simply refuse to accept delivery and the seller will be penalised, if quality was found wanting.

“The Exchange has taken serious note of concerns raised about the quality of cocud and has sensitised WSPs to market participants' concerns. The Exchange shall take action as may be warranted on receipt of the test results. The Exchange shall adhere to stringent standards,“ said an NCDEX spokesperson. Delivery issues in certain commodities have dogged the exchange in recent times after market participants allege that a few exchange approved warehouse service providers are colluding with sellers to pass off low quality goods.

The Exchange says it has stepped up vigil after a similar fiasco in coriander.

Sebi's attention was drawn to Cocud by complaints of sellers mixing rice bran oil meal with it and passing it off as cotton seed oil cake.