Regulator to inspect NCDEX warehouses in Gujarat

A team of market regulator Securities and Exchange Board of India (Sebi) will visit Gujarat to inspect quality of cottonseed oil cake stock in warehouses of the National Commodity and Derivatives Exchange (NCDEX).

Cotton seed crushers from Kadi in Gujarat have filed a complaint with the Sebi against NCDEX, alleging the quality of cotton seed oil cake (cocud) stock is not up to the mark. “We have filed a complaint to the market regulator over the lower quality of cottonseed oil cake stock and a Sebi team is coming to inspect the quality of the stock," Kadi Cotton Crushers’ Association committee member Pratik Patel said.

Kadi is the leading cocud and other oil cakes market in India. Patel alleged that NCDEX has not invited the association members for inspection. NCDEX warehouse at present has total stock of approximately 15,000 tonnes, which is equal to 3 lakh bags of cocud. This is 30-35 per cent of the total stock available in Indian market, he said.