Traders plan to move FMC as NCDEX rejects Unjha cumins

With approximately 1,000 tonne cumin seeds rejected by the National Commodity & Derivatives Exchange (NCDEX) on quality grounds, a majority of traders dealing in cumin seeds from Unjha have decided to approach the Forward Markets Commission (FMC) and urge it to intervene in the matter.

While speaking to Business Standard, Pravin Patel, Director of Unjha Agriculture Market Produce Committee (APMC) and Gujarat State Agriculture Marketing Board, said, "We fail to understand why the NCDEX has been continuously rejecting cumin seeds traded from Unjha on product specification grounds. Till date, no such issues have ever occurred to us. We fear the officials of NCDEX are supporting some speculators interested in down-rating prices of cumin seeds as there is already deficit in the crop with farmers in Gujarat shifting to cotton and untimely showers affecting the crop in Rajasthan."

He said the jeera sent for delivery to NCDEX warehouse was a year old as the fresh crop was yet to arrive. "We have decided to approach the FMC and request them to intervene into the matter, as we estimate rejection of more than 1,000 million tonne cumin seeds, the market value of which is around Rs 12.50 crore," added Patel.

Cumin seed is grown in several districts in Gujarat and Rajasthan. The prominent ones are Banaskantha and Mehsana in Gujarat and Barmer, Jalore, Jodhpur and Nagaur in Rajasthan.

The country produces around 1.2 lakh-1.3 lakh tonne Jeera every year. Last year, Gujarat produced 60,000 tonne and Rajasthan produced 45,000 tonne.

With at least 30,000 tonne carry-forward inventory and farmers in Gujarat shifting to cotton crop, cultivation scenario of cumin seeds in Gujarat has drastically changed this year.

Besides, unexpected showers in Rajasthan damaged 20 per cent crop in the state. This year Gujarat is likely to produce 30,000 tonne cumin seeds while Rajasthan's production stand at 36,000 tonne.

Speaking on the issue, an NCDEX official said: "Before launching any commodity trade contract, the exchange would give a set of quality parameters and specifications including parameters of seed counts a gram, permissible moisture content and permissible foreign matters.

In case of jeera, the ideal seed count is maximum of 300 seeds a gram, the moisture content is 10 per cent, the permissible foreign matters is 1 per cent and edible seeds other than jeera is 2 per cent. If the product received at our warehouse does not adhere to the quality specifications stipulated in the trade contract, we simply reject it."

He said the product to be traded is sent to the exchange warehouse, where it is tested by neutral assayers. If assayers find the product not in parity with the stipulated quality specifications, it is rejected, he added.

"In the cumin seeds received from Unjha since last 4-5 days, complaints of edible seeds other than jeera "" damaged, discoloured, weevilled, shriveled seeds and immature seeds "" were found more than the allowed percentage and so we rejected the lot," claimed the official.

Cumin seeds are largely traded in bags of 60 kg, mainly across the marketing yards of Unjha in North Gujarat in Mehsana District. Prices of cumin seeds are usually quoted on quintal basis.

The consumption of cumin seed in the world (excluding India) is between 25,000 tonne and 30,000 tonne. India exports cumin seed mainly to Bangladesh, Brazil, Japan, Malaysia, Nepal, Singapore, the UAE, the UK and the US.

UP IN ARMS

The country produces around 1.2 lakh-1.3 lakh tonne Jeera every year

This year Gujarat is likely to produce 30,000 tonne cumin seeds while Rajasthan's production stand at 36,000 tonne

Last year, Gujarat produced 60,000 tonne and Rajasthan produced 45,000 tonne