What is Tolerance limit for commodity?

Tolerance limit is the range within which the delivery unit of the commodity can be accepted or considered as good for delivery on exchange platform. E.g. If the delivery unit is 10 MT and the tolerance limit is 500 Kg then the tolerance limit of the said commodity is 9.5 MT to 10.5MT and weight of the commodity delivered within this range is considered as valid or good delivery.

Leave a Reply

Your email address will not be published. Required fields are marked *