The National Commodity and Derivatives Exchange (NCDEX) has started tagging goods stored in its accredited warehouse with Radio Frequency Identification.

The tag will ensure that the commodities stored in the warehouses are tracked through radio frequency signals, providing real-time information on stocks.

The move will improve efficiency and reliability of the storage and delivery operations at the warehouses, NCDEX said in a statement on Wednesday.

The tagging will be implemented at the National Bulk Holding Corporation warehouse storing guar gum at Khara in Bikaner and introduced in a phased manner across all delivery centres, including Jodhpur, Bikaner, Nokha, Sriganganagar and Deesa. It will be expanded to all other commodities and warehouses, said the exchange.

Every commodity bag entering the warehouse will be tagged with details on the lot number.

The RF tags facilitate automatic data entry besides providing prompt and accurate information on the ownership, date of deposit and expiry date.

This reduces dependency on labour and saves time and money in logistics operations, it said.

Samir Shah, Managing Director, NCDEX, said the tags will not only make stocks stored in the exchange approved warehouses electronically secure, but also bring about greater efficiencies and increased transparency in warehouse operations.

Anil Chaudhury, Managing Director, NBHC, said the RFID initiative brings in an efficient and transparent system that will mitigate several risks associated with agriculture warehousing.

Excessive speculation in agriculture commodities leading to a spike in prices has put the exchange under market regulator SEBI’s glare.

It stopped trading in castorseed contracts abruptly in January on price rigging and suspended trading in chana contracts last month on concerns over rising prices.

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