NCDEX, the leading commodity exchange, is launching its Chilli-Teja contract tomorrow. This contract with modified specifications of Chilli -Teja will be available for trading from Tuesday, Apr. 15, 2014. This will be of tremendous benefit to buyers who can now be rest assured of quality delivery of goods meeting contract specifications since it entails compulsory outbound quality check by exchange approved assayer at the time of settlement.
The direct delivery mechanism which is similar to the practice followed in the physical market essentially requires the allocated buyer, to arrange for assaying by Exchange approved assayer, at the seller's warehouse, and lift goods directly from there.
In case the goods tendered for delivery, fail to conform to the contract specifications, it would constitute a seller's default.
Speaking on the initiative, Samir Shah, MD & CEO, NCDEX said, ''The chilli teja variety constituting about 35% of the total chilli production in the country is very popular among the processors, exporters and consuming industries. With the NCDEX prices being a benchmark for the trade, the modified NCDEX Chilli Teja contract which includes direct delivery will be extremely beneficial to them in ensuring consistent quality supply.''