In a bid to end warehouse service providers (WSP) favouritism and bring much needed transparency in warehouse operations, NCDEX launched an mobile application through which traders can book warehouse space in advance before the commodity is transported for dematerialisation .

Traders have to pay seven days rent in advance and have to forfeit the same if the space is not utilised within seven days.

In the first phase, the facility is available for delivery of sugar, turmeric and barley in 14 warehouses covering five warehouse service providers. Once a WSP opts for online booking of space it cannot accept offline booking for dematerialisation .

By March, the exchange intends to hook the entire 466 accredited warehouse on to the online platform.

Speaking to media on Wednesday, Samir Shah, Managing Director, NCDEX, said the app would end WSP favouritism in accepting goods from traders as the system will work like a railway ticket booking system with a option of waitlist for space and knowing exact position of traders booking by end of the day.

The reforms implemented by NCDEX in warehousing space has led to number of complaints falling to 2-3 a year from 2-3 a week earlier, he said.

The exchange is working on a rating system for warehouses and bar code tagging on each bag of commodity stored for delivery at accredited warehouses. The bar code will capture the quality of goods and other details in the contract.

The exchange has facilitated paperless warehouse funding worth ₹1,000 crore in nine months through its ePledge mechanism whereby banks provide loan based on traders demat credit. It has tied up with six banks and 13 NBFCs for the same.

Pepper contract relaunch

NCDEX plans to re-launch pepper contract as the controversy over delivery of adulterated pepper is almost sorted out.

Of the alleged 6,500 tonnes of bad pepper delivery, 2,000 tonnes have been released as there was no mineral oil trace in them. The High Court has agreed on the exchange suggestion to clean the remaining pepper and make it deliverable under the supervision of Food Safety and Standards Authority of India.

The exchange, said Shah, is in the process of voluntarily adopting the price polling standards set by the International Organisation of Securities Commissions in 2-3 months, though there are challenges with over 750,000 APMCs in the country and spot market in India being largely unorganised unlike overseas, he said.

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