Pepper traders, faced with the prospect of having to destroy black pepper worth around `300-crore, traded on NCDEX and found to be adulterated with carcinogenic mineral oils, have disowned responsibility for the stock and are up in arms against the Commodity Exchange.
The Food and Safety Standards Authority of India (FSSAI) under the Union Health and Family Welfare Ministry had recently found that over 90 per cent of the stock in NCDEX’s warehouses at Kochi is adulterated and has sealed the stock. FSSAI has also observed that quality control systems were not followed and that the District Food Safety Officer should conduct a detailed investigation so that actions could be initiated against the culprits. The Kalimirchi Vyapari Association, fighting for either refund of the money paid or delivery of 7,000 tonnes of Malabar Garbled 1 Black Pepper as per the futures contract with NCDEX, said the Exchange cannot simply wash their hands by saying that it does not have any responsibility.
“NCDEX cannot deny responsibility. As per bylaws of the Exchange and as stated by the regulator FMC, the Exchange is the counter party to every buyer and seller. This clearly establishes that the Exchange stands as the seller for every buyer, and buyer for every seller,” said Pradeep Acharya, Vice President of the association.
He added that the traders have paid NCDEX full money for pepper and it is the responsibility of the Exchange to provide the stock.
Brokers and exporters who paid the money in advance to NCDEX are at a loss as the Exchange has refused to either refund the money or deliver the goods.
The Food and Safety Standards Authority of India (FSSAI) under the Union Health and Family Welfare Ministry had recently found that over 90 per cent of the stock in NCDEX’s warehouses at Kochi is adulterated and has sealed the stock. FSSAI has also observed that quality control systems were not followed and that the District Food Safety Officer should conduct a detailed investigation so that actions could be initiated against the culprits. The Kalimirchi Vyapari Association, fighting for either refund of the money paid or delivery of 7,000 tonnes of Malabar Garbled 1 Black Pepper as per the futures contract with NCDEX, said the Exchange cannot simply wash their hands by saying that it does not have any responsibility.
“NCDEX cannot deny responsibility. As per bylaws of the Exchange and as stated by the regulator FMC, the Exchange is the counter party to every buyer and seller. This clearly establishes that the Exchange stands as the seller for every buyer, and buyer for every seller,” said Pradeep Acharya, Vice President of the association.
He added that the traders have paid NCDEX full money for pepper and it is the responsibility of the Exchange to provide the stock.
Brokers and exporters who paid the money in advance to NCDEX are at a loss as the Exchange has refused to either refund the money or deliver the goods.
The Kalimirchi Vyapari Association has moved Madhya Pradesh High Court seeking urgent justice and the hearing has been scheduled on September 17. Members of KVA have also written to the Health Ministry, the Forward Markets Commission (FMC), the Consumer Affairs Minister and the Kerala CM, drawing their attention to the matter.
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