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Mumbai, Sept 3:
Leading national commodity exchange NCDEX today sought government
intervention in allowing market participants to improve the quality of
pepper stocks for compliance with food safety laws.
“Since the traces of mineral oil appear to reflect long standing
industry practice, the Exchange will seek government intervention in the
interests of industry and recommend that holders of the stock and the
market participants should be given an opportunity to remove mineral oil
coating and improve quality,” NCDEX said in a statement.
The Food Safety and Standards Authority of India (FSSAI) had seized
stocks of pepper lying in six warehouses accredited by NCDEX in
December, 2012, in response to a complaint from one of the buyers that
the pepper contained mineral oil, which is not permitted under the FSSAI
Act.
Since then, the FSSAI has been testing the goods with help from the Spices Board and the Exchange.
The FSSAI has now issued an order for destruction of 93 lots found with mineral oil traces.
Taking cognisance of the order, the respective owners have accordingly
been informed to take up the matter with the FSSAI and take appropriate
action, it said.
Specific lots that have been found to meet the FSSAI standards are to be released to the respective owners as per the order.
The Exchange, it said, has always ensured delivery of commodities in accordance with its contract specifications.
The NCDEX does not have any liability regarding these stocks, it said.
The Exchange is also not liable for non-compliance by any member and
market participant with all applicable laws on the underlying commodity.
In fact, most of the stocks in the godowns sealed by the FSSAI
authorities were bought by the holders in off-market transactions
outside the Exchange platform.
It further said, NCDEX only provides a trading platform for trading in
forward contracts. It does not own, deposit or deal with the goods in
the warehouses.
Industry players have informed the Exchange that farmers or traders
engaged in cultivation, production and trading of pepper adopt various
methods to preserve the spice, including by addition of small quantity
of mineral oil as a fungicide, it said.
Traders routinely use a process of steaming to later remove the mineral oil coating, it added.