The Hindu Business Line : NCDEX Jan chilli contract launch postponed

In a circular issued on November 9, the exchange informed its members that the launch of the January contract on chilli — one of the most traded commodities at NCDEX — had been deferred until further notice.

While the notice is silent on the reasons, sources said roughly 12 per cent of the stock at NCDEX warehouses was found not conforming to the quality specifications. NCDEX has seven warehouses for chilli, mostly in Guntur, Andhra Pradesh. When contacted, an NCDEX official said the exchange had already identified the unsuitable stock to ensure delivery of chilli as per the contract specification.

Maintaining that the warehouses were responsible for creating such unsuitable stock, NCDEX has already set up a committee to investigate into the issue and suggest corrective measures.

The decision to launch new contracts will be taken only after the investigation gets over.

Meanwhile, future prices of chilli on the existing November and December contracts at NCDEX continue to rule at roughly 20 per cent lower than the spot prices.

As against a spot price of over Rs 6,600, the November contract is now ruling at around the Rs 5,100 levels.

Average trading volume, which was ruling well over Rs 120 crore a few weeks ago, has also come down drastically and closed at Rs 39 crore on Monday.

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