Commodity Online
MUMBAI: India’s leading agri commodities bourse, National Commodity and Derivatives Exchange (NCDEX), says it will put in place a stringent mechanism to disseminate spot prices of commodities.

Last month, NCDEX was in a spot when the exchange displayed incorrect prices of guar seeds. The exchange then said that an error led to the display of incorrect spot prices.

”We have taken steps to ensure that spot prices will be cent per cent accurate,” a senior NCDEX official said.

NCDEX collects spot prices from mandis across the country through their polling agency CMIE. The agency then uploads the spot price date directly into the NCDEX system.

But on September 11, after a few hours of trading, the spot price of guar seeds shot up by nearly Rs 50. In commodity markets, which trade futures contract, traders rely on the accuracy of the spot prices to discover the price of the contract.

Even as the exchange had traded considerable volumes after the jump in price, the authorities announced that the spot price was wrong and corrected the price.

On that day, guar seeds contract which rose to Rs 1815, finally closed at Rs 1794.

Traders have alleged that wrong spot prices led to loss to them as volumes more than doubled thanks to the wrong prices.