Leading commodity bourse NCDEX today announced launch of bulk silos facility in Rajasthan for storage of wheat.
This facility is being offered at the Star Agri Warehouse in Khasrain Kota, Rajasthan, for two grades of wheat -- WHET-11111 and WHET1121. The deliverable unit will remain 10 tonnes, the exchange said in a statement.
The storage in silos is not only convenient but also cost-effective for depositors who do not need to incur the cost of unloading and loading as well as bagging the produce at mandi.
The cost translates into approximately Rs 17 per quintal, which is around 1 per cent of the current price level of wheat, it added.
NCDEX CEO and Managing Director Samir Shah said: "NCDEX has always been at the forefront of driving reforms and development in the warehousing ecosystem and we are confident that this facility will bring significant benefits to market participants."
Foodgrains are stored loosely in silos unlike in dry warehouses and hence, 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, thus saving both time and labour, the exchange added.
