Tel: 011- 26340019 (8 Lines)

FAX: 011- 26340261

NATIONAL AGRICULTURAL COOPERATIVE

MARKETING FEDERATION OF INDIA LTD
NAFED HOUSE, SIDHARTHA ENCLAVE, ASHRAM CHOWK, RING ROAD,
NEW DELHI - 110 014 (INDIA)

DOMESTIC SALE QUOTES FOR COTTON SEASON 2008-09 FOR VARIETIES AND
GRADES
FOR April 16, 2010
Staple
Centre Variety/Grade length Micro Rate Rs.PC
(mm)
Mumbai Branch
MSWC/CWC WAREHOUSES IN H-4 SUP CONV 27.5-28.5 3.1-4.1 27200
MAHARSHTRA STATE
Above price quotations are only indicative and not offers from NAFED. Final quotations shall be given
only on receipt of the firm offers from the buyers. Further, the above quality parameters are indicative
only and the buyers should satisfy themselves in this regard before giving offer.

NOTE : ON “AS IS WHERE IS BASIS”

“ NO BULK QUANTITY DISCOUNT”

TERMS AND CONDITIONS FOR SALE OF FP COTTON BALES OF COTTON

SEASON 2008-09 ON DAILY SALE QUOTE BASIS
 1. OFFERS BY THE BUYERS MAY BE ADDRESED TO THE FOLLOWING:
Address E-Mail Fax No.
Mumbai Branch
Raj Mahal, 3rd Floor, 84,
Veer Nariman Road, nafmbi@nafed.nic.in 022-22872156
Churchgate,
Mumbai-20 (Mah.)
Ahmedabad Branch
“A” Wing, 6th Floor,
nafahm@nafed.nic.in 079-26420589
Maradia Plaza, CG Road,
Ahmedabad-06 (Guj.)
Hyderabad Branch
5-10-193, HACA Bhawan
2nd Floor,
nafhyd@nafed.nic.in 040-23242615
Opp Public Gardens,
Hyderabad-4
(A.P.)

 Offers may be addressed to respective Branch Managers of NAFED and

submitted through E-Mail/Fax/Mail at the addresses given above before 5.00
PM, which shall be considered same day. Available cotton of all varieties/grades
is offered for sale on uniform sale terms and based on indicative “daily sale
quotes” announced for the day on NAFED’s website www.nafed-india.nic.in.

 Supplies of cotton will be made on type sample basis/actual lot sample

basis/specific grade of varieties. Quantity offers received from buyers will be
considered by a Branch Level Committee and final sale price and quantity will be
confirmed to the buyers by the Branch Manager concerned after seeking
approval of the Head Office of NAFED.

2. FREE DELIVERY PERIOD:

Quantity Free Period

Up to 2999 bales 15 days
3000 to 5999 bales 30 days
6000 to 9999 bales **60 days
10000 to 24999 bales **60 days
25000 to 49999 bales **60 days
50000 to 99999 bales **60 days
** For sale of 6000 bales and above, the quantity for availing free period will be
divided equally every 30 days.

3. DEPOSIT MONEY:

After receiving the confirmation of sale from NAFED, the purchaser need to deposit
1% EMD of the total value through Pay Order or DD within 2 (two) working days
from confirmation of the bargain. The bargain shall stand cancelled on failure by
the party to deposit EMD.

The purchaser need to deposit 10% value as security deposit in two installments.
 5% of the security deposit is to be deposited within 3 (three) working days and
balance 5% within another three days from the date of confirmation of sale and
Earnest Money Deposit would be adjusted towards security deposit. In case of
default in deposit of the above mentioned payment within the specified time frame,
by the buyer shall make the contract liable for cancellation at the option of seller
and the part deposit received, if any, shall be forfeited.

4. WEIGHMENT, DELIVERY AND TERMS OF PAYMENT:

Buyer shall be entitled to free delivery period to take delivery of the purchased
quantity of cotton against full payment of total value including taxes as applicable as
detailed hereunder:-
a) _________________ days from the date of contract.

Delivery of stock will be given on actual 100% weighment basis. All sales shall be
on spot basis & expenses after weighment, shall be on the Buyer’s account.
Confirmed quantity of cotton bales would be delivered from the warehouses as
mentioned in the confirmation letter. The Buyer shall effect payment and take
delivery of bales within the free period given from date of confirmation. In case of
failure on the part of the Buyer to do so, the contract is liable to be cancelled at the
option of the Seller. In the event of such a cancellation, the Seller shall be entitled
to resell the entire or balance quantity thereof, at any time and in any manner it
deems fit and at the same time, reserving its right to recover any damage/losses
sustained by such resale.

All payments shall be made in crossed A/c Payee Demand Drafts, Pay Orders,
Banker’s Cheques in favour of the Federation or by means of Electronic Fund
Transfer in Bank Account of the Federation only. In case of payment by cheques, or
through Electronic Fund Transfer delivery shall be allowed to take place only on
confirmation of realization of payment in the Seller’s account. NAFED may also
accept Letter of Credit opened by any Nationalized Public Sector Bank.

5 CASH DISCOUNT FOR MAKING EARLY PAYMENT :

The Buyer shall be entitled for cash discount at the rate of 9% p.a. on pro-rata basis
for unavailed free period i.e. for the number of days for which payment is released
earlier than required as per terms of the contract.

6 CARRYING CHARGES:

a. After expiry of the free period, the buyer would have to pay carrying
charges @ 1.40% per month per 30 days for first 60 days and
thereafter @ 1.5% per month per 30 days till the delivery of the
cotton.
b. If the buyer does not lift the bales within 30 days after making full
payment lifting charges @ 0.50% per bale will be levied.

7 SALES TAX/VALUE ADDED TAX (VAT):

CST/VAT and all other levies/taxes as applicable would be extra and on buyers
account. In case of sales against “C” Form, the Buyer has to deposit equivalent
amount of the tax with the Seller. On submission of the requisite Sales Tax form
along with required details, deposit so collected against the Form shall be refunded
 to the Buyer.

8 ARBITRATION:

In case of any dispute or difference arising out of or in relation to the contract,

except any dispute regarding the quality of cotton which is specifically excluded
under clause 2 of the Contract, will be referred to an Arbitrator (other than an
employee of the Seller) to be appointed by the Managing Director of the Seller and
the decision of the arbitrator shall be final and binding upon the parties hereto. The
Arbitration will be governed by the provisions of the Arbitration and Conciliation Act,
1996 or any statutory amendments or re-enactment thereof.

9 FORCE MAJEURE:

Should any circumstances beyond the control of the Seller such as natural calamity,
strike, riot, elements, war, quarantine, fire or any act of circumstances of force
majeure, the contract shall be cancelled to the extent of
damage/destruction/shortfall arising due to the above causes. The Seller shall
intimate quantum of such shortfall to the Buyer within 30 days. The Buyer hereby
categorically agrees to such cancellation of shortfall quantity and shall neither have
recourse to any action, legal or otherwise, nor demand any compensation in
respect thereof.

10 GENERAL:

i. The Federation reserves its rights to amend, alter, modify or change any of the
terms and conditions looking to the availability of stocks, credit worthiness and
past performance of the buyer etc.
ii. Brokers can also submit the quotes with an authority from their Principals and
authority letter of the buyer should be produced at the time of deposit of
security deposit. However, no brokerage would be paid by NAFED to any
brokers.
iii. Quotes not as per the terms and conditions will not be considered and shall
be rejected.
iv Offers received upto 5.00 p.m. will only be considered for the day. Offers received
after the due time shall automatically lapse. In such cases, Buyers need to give fresh
offers next day.