NCDEX introduces e-tagging technology

The National Commodity & Derivatives Exchange (NCDEX) has started introducing the Radio Frequency Identification (RFID) technology in exchange-approved warehouses, it said on Wednesday. RFID ensures that commodities stored in warehouses are tracked through radio signals and the information helps improve efficiency and reliability of storage and delivery operations.

NCDEX is the first commodity exchange in the world to use this technology. National Bulk Holding Corporation (NBHC) became the first warehouse service provider of the exchange to start RFID, introduced at MV Agro-Tech, its warehouse in Khara, Bikaner.

Under the process, every bag is tagged at the time of entering the warehouse and the details are digitally stored. The tags facilitate automatic data entry, provide prompt and accurate information on ownership, date of deposit and exchange expiry date.

Samir Shah, managing director and chief executive officer, NCDEX, said, “RFID tags will not only make stocks stored in exchange approved warehouses electronically secure, but also bring about greater efficiency and increased transparency in warehouse operations.” NCDEX plans to introduce the technology in a phased manner across all delivery centres (Jodhpur, Bikaner, Nokha, Sriganganagar and Deesa centres) for Guar gum. Later, this facility will be expanded to all commodities and warehouses.

Anil Chaudhury, MD & CEO, NBHC, said, “The initiative brings in an efficient and transparent system that will mitigate several risks associated with agri-warehousing and will bring trust to the entire ecosystem.”