The government has granted a license to Public Storage to operate warehousing for agriculture products in India. Warehouses are scientifically designed storage facilities which safeguard the quantity and quality of stored produce for agricultural warehousing in India. Warehouses are scientifically designed storage structures specifically designed to protect the quantity and quality of stored products. Central Warehouse Corporation provides secure, dependable storage facilities for approximately 120 farm and industrial commodities.
Central Warehouse corporation operates climate controlled storage facilities in Kolkata, Bombay, and New Delhi, while providing cold storage facilities in Hyderabad. Apart from CWCs and SWCs, Central Warehousing Corporation has set up warehouse facilities. Storage facilities available under the Food Corporation of India (FCI), some storage facilities available under Central Warehouse Corporation (CWC) and State Warehousing Corporations (SWCs) and facilities leased out to private sector are used to store grain purchased from central government. Warehouses at Central Warehouse Corporation of Government of India (CWC) For further details, the Corporation was established as a statutory authority on 2nd March 1957, at New Delhi.
Separate warehouse corporations were also established in various states of the Indian Union. The rise in Indias E-commerce sector is driving demand for, as well as the growth of, the logistics and warehousing industry of India. The Indian warehousing sector is going through significant transformation in order to stay ahead with the growing manufacturing and logistics sectors in the country. For example, Warehouse Chennai is well on its way to becoming Indias next big warehouse and logistics hub, by adopting technology disruptions.
End-to-end logistics providers are also starting to take advantage of opportunities created by the Central Government in the agriculture-warehouse sector. While the central government has focused on improving agricultural storage infrastructure, several political issues and infrastructure bottlenecks still continue to hamstring the agri-warehousing segment. Warehouses have been linked with food security and agriculture growth in India. India annually wastes huge amounts of food items because of the inadequacy of agriculture infrastructure, including storage and transport facilities.
Agricultural storage accounts for 15% of the Indian storage market, worth Rs8,500 crore. Organized players in Indias warehousing sector only constitute 10% of the total market, while about 90% of the storage area in India is controlled by unorganised players that operate smaller-sized warehousing units with low/no mechanisation. The Indian warehousing market is divided into four industry segments, which are Industrial or Retail Warehousing, Container Freight Stations or Inland Container Depots (CFS/ICD), Agriculture Warehousing, and Cold Storage. Storage facilities and warehouses are owned predominantly by public sector enterprises in India.
The warehousing industry is a crucial component of Indias economy as it keeps global supply chains moving. Formalisation has had only limited success to date, with the bulk of government farm products still stored in warehouses that are not registered. Warehousing warrants contain a name and address of the warehouse, the date it was issued, the commoditys description including grades and weights, and a valuation estimate based on the then-current prices of agriculture storage in India.