Jeera quality concerns unnecessary: NCDEX
Jeera (cumin) traders fear high moisture in the crop due to incessant rain in the past two months and, hence, on quality.
Anticipating problems in delivery and therefore availability, the price hit a lifetime high at the benchmark spot market in Unjha (Mehsana district of Gujarat) to ~19,623 a quintal on July 31. On Friday, these closed amid high volatility at ~19,236 a quintal.
The National Commodity & Derivatives Exchange (NCDEX) says 62 per cent of the stock which reached their registered warehouses at Unjha has been of the requisite quality, at 1,471 tonnes (since early August). The harvest season ends in April and sowing starts in October. Peak arrivals in the physical market start gradually tapering in August and September.
NCDEX said it had facilitated 3,670 tonnes of warehousing capacity to traders in the Unjha markets, more than adequate to meet the needs of prospective depositors. The exchange has provided an online warehouse reservation system to book space for deposits in a fair and transparent manner, it says, adding this is being used by market participants across the country.
Each buyer may opt for assaying at the time of withdrawal of the stock received as delivery. They need to exercise the option prior to the exchange delivery date of the specific lot to get assurance on the quality. The exchange says it ensures the warehouse service provider compensates the buyer for any deficiency here.