Apparently, traders are facing destruction of about Rs 300-crore worth black pepper stock traded on NCDEX which was found to contain carcinogenic mineral oils
Peppertraders are up in arms against the National Commodity & Derivatives Exchange (NCDEX) over the latter’s disowning responsibility for destroying adulterated (contained mineral oil) stocks in the exchange accredited warehouses. Apparently, traders are facing destruction of about Rs 300-crore worth black pepper stocks traded on NCDEX which found to be adulterated with carcinogenic mineral oils.
The Food and Safety Standards Authority of India (FSSAI) under the Union Health and Family Welfare Ministry has found that over 90% of the stock in NCDEX’s warehouses at Kochi is adulterated and has sealed the stock.
FSSAI has also observed in its latest report after analyzing samples that quality control systems were not followed and that the District Food Safety Officer shall conduct a detailed investigation so that further legal/penal action 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 brush it off by saying that it does not have any responsibility.
Commenting on reports that NCDEX claims that it cannot be held responsible, Pradeep Acharya, Vice President of the association said: “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.”
The traders have paid for the stocks upfront, but have not been given delivery. It is still in the possession of NCDEX and its accredited warehouses. “We have paid NCDEX full money for Malabar Garbled 1 Black Pepper and it is the responsibility of the Exchange to provide us with the stock,” Acharya said.
He pointed out it is grossly wrong for NCDEX to say that the Exchange is also not liable for non-compliance by any member and market participant on the pretext that it only provides a trading platform in forward contracts.
Brokers and exporters who paid the money in advance to NCDEX are at a grievous 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 as the traders’ money of over Rs 300 crores is stuck and they are losing heavily on all fronts. The matter is expected to come up for hearing on September 17, 2013.
Members of KVA have also written to the Health Ministry, the Forward Markets Commission (FMC), the Consumer Affairs Minister and Kerala CM drawing their attention to the adulteration and the way NCDEX has been treating the entire episode.
The traders, who were to take delivery of the stock, were shocked to learn about the large scale adulteration when the labour at NCDEX warehouses refused to even lift the bags that emanated a strong stench of kerosene.
The stock in question is so huge that it is equivalent to two to three-month consumption in India.
NCDEX, instead of acting on the FSSAI orders, has strangely issued a circular to their traders to clear the stock before the expiry of the contract which the merchants cannot, obviously, traders said.
Vijay Kumar, Chief Business Officer, had last week said that the FSSAI had found traces of mineral oil in 850 tonnes worth Rs 32-35 crore.
“This is the matter between buyers and sellers. Therefore, the exchange has nothing to do with it. Still, the exchange is in talks with authorities and traders to get the issue resolved,” he added.
Peppertraders are up in arms against the National Commodity & Derivatives Exchange (NCDEX) over the latter’s disowning responsibility for destroying adulterated (contained mineral oil) stocks in the exchange accredited warehouses. Apparently, traders are facing destruction of about Rs 300-crore worth black pepper stocks traded on NCDEX which found to be adulterated with carcinogenic mineral oils.
The Food and Safety Standards Authority of India (FSSAI) under the Union Health and Family Welfare Ministry has found that over 90% of the stock in NCDEX’s warehouses at Kochi is adulterated and has sealed the stock.
FSSAI has also observed in its latest report after analyzing samples that quality control systems were not followed and that the District Food Safety Officer shall conduct a detailed investigation so that further legal/penal action 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 brush it off by saying that it does not have any responsibility.
Commenting on reports that NCDEX claims that it cannot be held responsible, Pradeep Acharya, Vice President of the association said: “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.”
The traders have paid for the stocks upfront, but have not been given delivery. It is still in the possession of NCDEX and its accredited warehouses. “We have paid NCDEX full money for Malabar Garbled 1 Black Pepper and it is the responsibility of the Exchange to provide us with the stock,” Acharya said.
He pointed out it is grossly wrong for NCDEX to say that the Exchange is also not liable for non-compliance by any member and market participant on the pretext that it only provides a trading platform in forward contracts.
Brokers and exporters who paid the money in advance to NCDEX are at a grievous 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 as the traders’ money of over Rs 300 crores is stuck and they are losing heavily on all fronts. The matter is expected to come up for hearing on September 17, 2013.
Members of KVA have also written to the Health Ministry, the Forward Markets Commission (FMC), the Consumer Affairs Minister and Kerala CM drawing their attention to the adulteration and the way NCDEX has been treating the entire episode.
The traders, who were to take delivery of the stock, were shocked to learn about the large scale adulteration when the labour at NCDEX warehouses refused to even lift the bags that emanated a strong stench of kerosene.
The stock in question is so huge that it is equivalent to two to three-month consumption in India.
NCDEX, instead of acting on the FSSAI orders, has strangely issued a circular to their traders to clear the stock before the expiry of the contract which the merchants cannot, obviously, traders said.
Vijay Kumar, Chief Business Officer, had last week said that the FSSAI had found traces of mineral oil in 850 tonnes worth Rs 32-35 crore.
“This is the matter between buyers and sellers. Therefore, the exchange has nothing to do with it. Still, the exchange is in talks with authorities and traders to get the issue resolved,” he added.
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