NCDEX starts deposits in silos, savings for depositors

KOLKATA: National Commodity & Derivatives Exchange (NCDEX) has started accepting wheat deposits in silo bulk storage facility. Farmers and traders can now directly bring their loose produce to NCDEX approved silos and save on bagging and handling costs. NCDEX is the only exchange in India to offer deposits in silo storage systems.

Commenting on the development, Mr. Samir Shah, MD & CEO, NCDEX said: “We are extremely delighted to announce the launch of silo storage facility, which is one of the best practices for storing agricultural produce. NCDEX has always been at forefront of driving reforms and development in the warehousing ecosystem and we are confident that this facility will bring significant benefits to the market participants.”

It is not only convenient but also cost effective for depositors, who do not need to incur the cost of unloading & loading as well as bagging the produce at mandi. It translates to approximately Rs. 17 / quintal, which is around 1% of the current price levels of wheat (Avg around Rs. 1700/quintal).

This facility is presently being offered in Star Agri Warehouse, Silo No. 1,2,3,4 at Khasra in Kota, Rajasthan for two grades of wheat: - WHET11111 and WHET1121. The deliverable unit will remain 10MT.

Agri produce is stored loosely in silos unlike in dry warehouses and hence it is most conducive for bulk storage. Silo storage results in lesser spillage at the time of deposit and no weight loss at the time of withdrawal. Also, bulk buyers have an advantage to take delivery of loose material thereby saving both time and labour.