NCDEX starts warehousing reforms to strengthen quality checks

National Commodity and Derivatives Exchange (NCDEX) today introduced additional quality safeguards for goods deposited at its warehouses.
All fresh deposits in its accredited warehouses will now undergo compulsory quality testing by an empanelled assayers over and above the testing done by the warehouse service provider to make sure they meet contract specifications, NCDEX said in a statement.
This second test will be done at no extra cost to the depositor. The procedure is being flagged off with fresh deposits for RM seeds, turmeric and jeera and later extended to other, the release said.
"We have launched our next generation warehouse reforms, aimed at developing a robust and transparent ecosystem. Our aim is to make storage of commodities in NCDEX approved warehouses an even safer experience for traders and farmers," NCDEX head Samir Shah said.

"Combined with our own electronic commodity accounting system Comtrack, we hope the new safeguard will go a long way towards achieving this, he said.
Some of the initiatives taken include the National Accreditation Board for Testing and Calibration Laboratories accreditation for testing labs, review of the sampling process and audit testing of the goods during storage in the approved warehouses. This new initiative will give a further impetus to NCDEX's warehousing reforms.
The second assayer will be appointed by the exchange from the list of empanelled assayers and the following guidelines will be applicable. The additional testing shall be done in respect of only fresh deposits.

The sampling and testing process followed by the additional assayer will be exactly the same as currently prescribed for warehouse assayers for all deposits in these commodities. Both assayers will independently take samples and get the same tested in their labs.