Leading agri-commodity bourses NCDEX today said its independent audit team has found 12 per cent of the coriander stock in two approved warehouses in Rajasthan defective.
The two warehouses belong to the National Bulk Handling Corporation (NBHC). The exchange has taken cognisance of the findings and has instructed NBHC to immediately remove the defective stock from the warehouses, it said.
"The independent audit commissioned by NCDEX to verify the quality of coriander stocks deposited in the approved warehouses in Kota and Ramganj Mandi reveals that 12 per cent of the stocks in the Ramganj Mandi and Kota warehouse were damaged and discoloured," NCDEX said in a statement.
Responding to the concerns about quality of the coriander stock in the approved warehouses, NCDEX conducted a 100 per cent sampling and audit of the stock deposited at the NBHC warehouses at Kota and Ramganj Mandi.
Testing of all the 2,240 tonnes has shown that 1,410 tonnes conform to the exchange specifications on all parameters. Out of the remaining 830 tonnes, 270 tonnes failed on the parameter of damaged/discolored seeds and 10 tonnes had splits above the acceptable level, while 10 tonnes had weevilled seeds marginally above 0.5 per cent, it said.
The balance stock of 540 tonnes showed moisture slightly exceeding permissible level of 9 per cent. "Higher moisture in these stocks deposited during the period June to August 2016 can be attributed to the ambient moisture in the atmosphere during the monsoon season," NCDEX said.
Kota district has received 900 mm rainfall this season, 17 per cent higher than last year's. Traditionally, the moisture level in the coriander stock drops after monsoon recedes.
NCDEX said participants taking delivery of coriander on the exchange platform can utilise the remat-assaying facility being offered by the exchange to verify the quality goods. Any variance of quality from what is specified by the exchange is fully compensated.
"There is absolutely nothing to worry for the buyer on the quality front. Having completed the independent audit, we find that there isn't a quality issue at the level as it as was made out to be. We have found some issues which we will ensure will get addressed through the remat-testing process of the buyers," NCDEX MD and CEO Samir Shah said.
Remat-testing is done to verify the goods before taking delivery.
NCDEX is fully committed to ensuring good delivery of commodities. The exchange is vigilant about the stocks deposited in the warehouses and have suitable checks and controls in place to ensure adherence to norms, he added.
Meanwhile, markets regulator Sebi is probing the quality of coriander stock kept at NCDEX-approved warehouses separately.
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