NCDEX, the leading commodity exchange in India has announced reduction in rental charges in the NCDEX approved warehouses across the country. In a move that will benefit all the participants on the exchange platform, rental charges for NCDEX approved warehouses have been slashed across different commodities in various locations.

The reduction in charges from 3% to as high as 16.7% will make storing commodities cheaper for the depositors. The reduced charges will be applicable for deposits made from November 1, 2014 onwards.

Samir Shah, MD & CEO, NCDEX said, "Driving next generation warehousing reforms, aimed at developing a robust and transparent ecosystem is our biggest priority. Our aim is to make storage of commodities in NCDEX approved warehouses a safer experience for traders and farmers and the reduced rentals will help them derive better realization for their produce."

NCDEX had recently introduced an additional safeguard procedure with compulsory second quality testing for fresh deposits at no additional cost to the depositors. This procedure is implemented during fresh deposits at the exchange registered warehouses, to ensure that they meet the contract specifications. Some of the other initiatives taken to strengthen quality include NABL accreditation for testing labs, review of the sampling process, audit testing of the goods during storage in the approved warehouses, etc.