CHAPTER - III

WAREHOUSING
BUSINESS IN INDIA &
CENTRAL
WAREHOUSING
CORPORATION
3.1 Introduction

After detailed discussion on the overview of warehousing in the

previous chapter and in order to have indepth analysis on the warehousing
business in India, it is planned to discuss the development of warehousing
business in India and the role of Central Warehousing Corporation. For this
purpose, the chapter has been divided in two sections, the first part deals
with the warehousing business in India while the other part deals with the
premier warehousing agency at all India level i.e., Central Warehousing
Corporation.

3.2 Warehousing Business In India

Indian history is full of references to food grains storehouses; the

Cholas, Nayak and Mahrattas had them. There are large grain storage
structures built by Chhattrapatti Shivaji at Panhala in Maharastra. In Tamil
Nadu, the Palace at Tanjavur and another at Tiruvaiyur nearby also indicate
having the ancient storage structures.

The public sector warehousing was developed in India with the twin
objectives of storing the agriculture produce and other notified commodities
in a scientific manner with pest free condition and preventing the farmers
from distress sell of their hard raised crops. Presently, there are three major
public sector agencies playing crucial role in the field of warehousing in the
multi-tier system of warehousing which was recommended by the Rural
Banking Enquiry Committee (1954) viz., Food Corporation of India (FCI),
Central Warehousing Corporation (CWC) and State Warehousing
Corporations (SWCs). It has been noted that the Ministry of Consumer
affairs, Food and Public Distribution is the controlling ministry for
administration and implementation of various agricultural, food and
consumer affairs related policies in India. The present warehousing in India
passed through various stages and enactments.
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The need for warehouses began to be increasingly felt in the context

of the policy of extension of agricultural credit to rural areas. It was
necessary to provide adequate scientific storage facilities for the
preservation of food grains and other allied agricultural produce. The
emergence of licenced warehouse in India was the outcome of
implementation of recommendations made by various committees
constituted to look after the problems faced by the rural mass. The
recommendations of few committees are discussed below.

3.2.1 Royal Commission on Agriculture

The establishment of licensed warehouses in India was first
recommended by the Royal Commission on Agriculture in 1928. The
importance of warehousing was felt seriously and the Reserve Bank of India
in the year 1944 urged all the State Governments by issuing directions to
enact legislation for setting up of warehouses in their concerned States.

3.2.2 Agricultural Finance Sub-Committee

The Government of India appointed a Sub-Committee under the
chairmanship of late Prof. D.R. Gadgil to report on the ways in which
indebtedness could be reduced and finance, both short-term and long-term
provided under efficient control for agriculture and animal husbandry
operations in accordance with the recommendations of the Policy Committee
on Agriculture, Forestry and Fisheries in the year 1944.

The Committee submitted its report in 1945 and observed that the
volume of finance supplied by the commercial banks to the agriculturists
could be considerably increased by improving the arrangements for
marketing of crops by grading and standardization, creation of proper
storage facilities and ushering in regulated markets. The Committee felt that
the establishment of warehouses in which the goods could be stored against
a negotiable receipt usable for obtaining loans from banks, be introduced in
India. The Committee was of the view that these steps would open up an
important channel for the commercial banks to provide finance to the
agriculturists.
 54

The Committee also felt that the State should undertake, as part of its
programme, the planning and construction of warehouses at all nuclear
points of trade in agricultural produce and that such a system should be
operated by a public-Corporation. The main thrust of the recommendations
of the Committee is on the agricultural marketing and warehouses
considered as an extension of the system of transport and the planning of
the location of warehouses. It must be done as part of planning the
extension and improvement of transport facilities. The construction of a chain
of warehouses is unlikely to attract immediately sufficient private capital and
it might also not be desirable to leave the running of the warehousing system
in private hands. The recommend that, the State should itself undertake, as
part of its programme of development of rural transport, the planning and
construction of warehouses at all nuclear points of trade in agricultural
produce. The warehousing system should be operated by a public
corporation organized on lines similar to those of Improvement Trusts or Port
Trusts. This would provide for a better and more economic management of
the system than if the warehouses were owned by individuals or particular
sale societies and would also facilitate the issue of warehouse bills.

3.2.3 Rural Banking Enquiry Committee

In 1949, the Rural Banking Enquiry Committee was appointed by the

Government of India. Among its terms of reference, the committee was to
consider measures that could be adopted for the extension of banking
facilities in rural areas. In relation to promotion of warehousing, the
committee observed that lack of proper facilities for the storage and
warehousing of agricultural produce has been a serious obstacle in the way
of increasing the scale of advances against agricultural produce by
cooperative marketing societies or commercial banks.

The foreign experts associated in the central banking inquiry

committee pointed out the impact due to lack of proper facility on storage
and warehousing on the scale of advances. The committee conclude that
improvement in the credit situation and the money market in India could be
 55

achieved only by improving and extending the storage and warehousing

facilities for good in order to enlarge the basis of the credit system.

The Committee recommended that Provincial Governments should

consider the desirability of advancing long-term loans at concessional rates
of interest to cooperative societies to build godowns in centers which
provided good markets. It also proposed that the Railway Board should also
examine the feasibility of constructing railway warehouses at selected
centers or allowing private parties to build such warehouses on favorable
terms.

The Committee noted that the question of enacting appropriate

legislation for licensing warehouses was taken up by the Reserve Bank of
India which circulated a draft bill for this purpose to the Provincial and State
Governments. On the model of this bill, Acts were passed in Bombay,
Madhya Pradesh, Travancore and Cochin. In spite of this, no independent
warehouse came into existence. The Committee was of the view that
without greater initiative and assistance from the State, much progress in
this direction not likely to be achieved.

The Rural Banking Enquiry Committee considered two courses of

action: firstly, it considered the scheme suggested by Gadgil Committee that
a chain of warehouses should be constructed by the State at all nuclear
points of trade in agricultural produce and this should be operated by a
Public Corporation. The second alternative was the provision of loans and
subsidies to cooperative institutions and commercial banks for building their
own godowns in accordance with certain approved specifications. The
Committee did not favour the first alternative as it would, in its view, have
entailed heavy financial commitment. It found the second alternative to be
more realistic as it would not require an elaborate organization. This
recommendation was conceived as a short term measure as it appeared to
be a more feasible plan to the committee as the banks could make larger
funds available than the cooperative marketing societies.
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The Committee recommended that a Warehousing Development

Board be set up with funds contributed by the Central Government, the
Reserve Bank of India and the provincial Governments. In the view of the
Committee, this Board was to be entrusted with the responsibility of
promoting warehousing in the country. The Board was to receive, scrutinize
and approve applications of commercial banks and cooperative institutions
for financial assistance for the construction of warehouses which would be of
such specifications and be erected at such centre as were approved by it.

The Committee also recognized the fact that warehousing was a

capital intensive activity which would not be attractive to private enterprise
and, therefore, it advocated that the State should enter into this field.
Agencies for promoting this activity were also suggested.

These recommendations, however, did not immediately lead to any

tangible result. The development of adequate scientific storage facilities
failed to make head way despite the efforts and steps taken by the Reserve
Bank of India. Little or no interest was taken by the State Government in the
development of public warehousing. These developments underlined the
need for the establishment of a strong central agency entrusted with the
responsibility of promoting warehousing.

3.2.4 Rural Credit Survey Committee (1954)

Public warehousing, as we know it today, stems from the

recommendations of the Committee of Direction of the All-India Rural Credit
Survey Committee. It would, therefore, be appropriate to go into some
details of the reasons which led that Committee to formulate its
recommendations regarding the establishment of Warehousing Corporation.

In February, 1951, the Reserve Bank of India had convened an

informal conference of cooperators, economists and others including the
Registrars of Cooperative Societies of some of the States for considering,
among other things, the steps necessary for enlarging the volume of
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agricultural finance to the agriculturists through the cooperative credit

system. This informal conference recommended that the Reserve Bank of
India should undertake a rural credit survey which should include all strata of
the rural population and cover problems of capital formation in the rural
areas as well as the credit requirements of both economic and indigent
farmers. This recommendation was accepted and in August, 1951, the
Committee of Direction for carrying out an All India Rural Survey was
constituted by Shri B. Rama Rao, the then Governor of the Reserve Bank of
India with the following terms of reference:-

i. to direct planning, organization and supervision of the survey;

ii. to interpret its results; and

iii. to make recommendations.

This Committee was constituted in the background of the demands

reiterated in Parliament and elsewhere, that a more constructive role should
be played by the Reserve Bank of India in the sphere of rural credit; and its
policies and activities should be so reoriented as to enlarge its participation
in the extension of rural credit.

The Committee in reference to the problem of storage observed that

lack of storage is part of a wider deficiency namely, the lack of orderly
marketing, cooperative or other. Such storage as exists is mostly for cotton,
jute and similar commercial crops and is largely in the hands of traders and
processing concerns. Before the Second World War, the storage available
was largely in the form of private godowns owned by the more substantial
cultivators, the wholesalers, etc. During the war, the different Governments
requisitioned a large number of private godowns for stocking their food
grains; they also constructed a certain number of new godowns.Several of
these godowns, old or new, private or, State owned are still in the
possession of Government.
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3.2.5 Emergence of Public Sector Warehousing

The beginning of public Warehousing in India got recognized with the

enactment of agricultural produce (Development & Warehousing)
Corporation Act. The Act categorically states the setting up of public sector
warehousing agencies at all India level (CWC) and state level (SWCs).

According to the Act, the share capital of the CWC was to be

subscribed by National Co-operative (Development and Warehousing) Board
and other institutions like the Banks, Co-operative Societies, Insurance
Companies etc. The shares of the Corporation were guaranteed by the
Central Government as to the repayment of the principal and payment of
annual divided at a minimum rate which was to be fixed by the Central
Government. The Warehouses of the Corporation could be utilized only for
the storage of agricultural and allied produce. There was no provision in the
Act enabling the Corporation to take up the storage of commodities other
than agricultural produce, inputs and implements.

The Agricultural Produce (Development and Warehousing)

Corporation Act also provides the establishment of State Warehousing
Corporation (SWCs) in different States. The share capital of the SWCs was
to be subscribed by the Central Warehousing Corporation and the State
Government concerned with equal ratio. Thus, both the Central
Warehousing Corporation and the State Governments were to be equal
owners of the State Warehousing Corporation

In an enquiry conducted by the Reserve Bank of India in 1952,

information was collected by means of a questionnaire as to the state of
existing godowns and their suitability for conversion into licensed
warehouses. The replies indicated that some of the Government godowns
could be readily converted into regular warehouse so far as the technical
quality of the accommodation was concerned. Some, however, were not
suitable for various reasons, e.g., they were situated at too great a distance
from trading centres or required considerable repairs including major
structural alterations.
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The godowns owned by cooperative were reported in most instances

to be not fit for conversion into warehouses. The generality of them being
makeshift structures built out of makeshift recourses. Private godowns were
as a rule inconveniently situated (e.g. in residential houses) and in many
cases were structurally defective. The replies further indicated that in very
few marketing centres in the country could storage accommodation be said
to be anywhere near adequate.

In totality, the problem of the rural economy as revealed by the survey

due to the lack of adequate and proper storage facilities. The Committee in
its report pinpointed this deficiency and expressed the need for an extensive
network of godowns and warehouses and for establishment of licensed
warehouses at suitable centres. Emphasis was laid on these by the earlier
Committees and Commissions also. The Committee also noted that despite
various efforts, the scheme of establishing licensed warehouses had made
no headway in any State and the existing godowns were not fit to be run as
warehouses as a number of them were makeshift structures and
inconveniently situated besides some of them were also structurally
defective.

The inadequacy of the warehousing facilities was considered by the

Committee as one of the gravest economic handicaps of the cultivator and
expressed its view that for its solution, a concerted and countrywide effort
had to be made. In this respect, the Committee observed that “the direction
and endeavor required may well be compared to those which have gone into
the construction of the railway system or lying out of the road ways.”

The integrated solution conceived by the Rural Credit Survey

Committee in its report on the multifaceted problem brought out by the
survey, was, development of Co-operative credit; The Co-operative
economic activity, specially marketing, processing and storage, warehousing
and distribution; rural and co-operative banking facilities; and facilities for the
training of personnel.
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The solution envisaged in regard to the development of storage and

warehousing included in its compass state entrepreneurship including
financial partnership, for the benefit of the rural producer. Thus the
development of warehousing was to be accomplished under State
entrepreneurship and with public funds. The Committee envisaged the
participation of the State Governments at the intermediate level but at the all-
India level, it envisaged deriving funds not only from the Central Government
but also from the various insurance and other financial institutions. The
concrete recommendations in this regard were:

I. The establishment of a “National Board” to be called “the National

Cooperative Development & Warehousing Board" which has to plan and
finance the scheme and to be the in-charge of the function of storage
and warehousing on the one hand and on the other hand, distribution of
basic and standardized requirements of cultivator as producer and
consumer.

II. The establishment of an all India Warehousing Corporation with the

investment in the share capital by Central Government and various
institutions and the establishment of State Warehousing Companies in
which the State Governments and the All-India Corporation were to
participate,.

III. The Co-operative Societies at the base.

The recommendations of the Committee with regard to the

establishment of the multi-tier system referred to above were neither isolated
nor independent of other factors. It had to be considered in the context of
the totality of the problem. The solution to the problem was an integrated
scheme formulated by the Committee. The development of warehousing and
storage with State participation and the multi-tier system having organic links
with the Central Warehousing Corporation Based on the recommendation of
the committee the Agricultural Produce (Development and Warehousing)
Corporations Act, 1956, was enacted by the Parliament. The
 61

recommendations of the Committee in regard to the establishment of a

National Co-operative Development and Warehousing Board and the Central
Warehousing Corporation were generally accepted by the Government. The
following are the set up as envisaged by the committee:

i. National Cooperative Development Warehousing Board

The National Co-operative Development & Warehousing Board as

well as the Central Warehousing Corporation was to be established by
statue. The State Warehousing Companies were also to be established by
statutes. The composition of the National Co-operative Development and
Warehousing Board was also suggested. This was to be a high-powered
Board with a Standing Committee. The Board was to act through the All-
India Warehousing Corporation (Central Warehousing Corporation) for the
discharge of such of its functions as they pertained to warehousing. In
regard to distribution, the Board’s functions were principally to be those of
planning, directing and co-ordination of the activities of the All-India
Warehousing Corporation and the State Warehousing Companies. The
development board was set up with the following objectives.

i. To provide funds to warehousing corporations and the State Governments

for financing co-operative societies for the purchase of agricultural
produce on behalf of the Central Government.

ii. To advance loans and grants to State Governments for financing co­
operative societies engaged in the marketing, processing or storage of
agricultural produce including contributions to the share capital of these
institutions.

iii. To subscribe to the share capital of the Central Warehousing Corporation

and advance loans to State Warehousing Corporations and the Central
Warehousing Corporation;
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iv. To plan and promote the programmes through co-operative societies for
the supply of inputs for the development of agriculture and to administer
the National Warehousing Development Fund,

ii. All India Warehousing Corporation- Central Warehousing Corporation

The All-India Warehousing Corporation was to have an authorized

share capital of Rs.20.00 crores to be subscribed by the National
Cooperative Development & Warehousing Board as well as other institutions
like banks, co-operative societies, insurance companies etc. A minimum
dividend rate guaranteed by the Central Government was also suggested. It
was also suggested that the debentures floated by the Corporation should
also be guaranteed by the Central Government as to repayment of principal
and the interest.

iii. State Warehousing Companies

The share capital contribution of State Warehousing Corporations not

less than 50% should be subscribed by the All-India Warehousing
Corporation and the rest by the State Government and there should not any
other way of contribution to the share capital. The establishment of a State
Warehousing Corporations in any particular State was to be effected as soon
as the State Government agreed to pay its stipulated part of the share
capital. Only two shareholders of these corporations were thus envisaged,
namely, the All-India Warehousing Corporation and the State Government.
The functions of the State Warehousing Corporations were similar to those
recommended for the All-India Warehousing Corporation. The first state
Warehousing Corporation was setup by Government of Bihar in the year
1956-57 and the last state Warehousing Corporation was setup in the year
1973 in Meghalaya.

3.2.6 Nucleus for setting up Warehousing Corporation

The Rural Credit Survey Committee had inter-alia observed that there
was already a network of civil supplies godowns throughout the country and
as a first step, such godowns found suitable for the purpose should be taken
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over from Government or from other owners by the National Co-operative

Development & Warehousing Board and a coordinated plan worked out.

The Committee further observed that it was also possible that the staff
engaged for several years in the civil supplies departments of different
States, be suitably made use by the All-India Warehousing Corporation, the
State Warehousing Corporations, etc. at different levels of operation in view
of long experience. Hence, the organization should start functioning even
before the National Co-operative Development & Warehousing Board. The
All-India Warehousing Corporation, etc. were statutorily established, the
Committee also said and added that it did not consider that there was likely
to be any great legal or administrative difficulty in building the nucleus of this
organization and in taking over the civil supplies godowns i.e., such of them
as were really suitable, in advance of the proposed legislation.

It was assumed by the committee that before warehousing

corporations were set up, State and Central Governments, particularly such
of those as had very nearly wound up their Civil Supplies Departments. After
de-control, would have taken steps to transfer storage spaces and some
trained but retrenched staff to the warehousing corporation to enable the
later to make a beginning for implementing the scheme. This was not done
and the corporation was made to start from absolute scratch. These
warehousing corporations were not provided with any assistance in the form
of warehouses or business from Government or Public Sector Organizations.
These were left to fend for themselves and compete with other organization.

There has been a sea of changes in the level of agricultural and

industrial produce and channels of marketing since the Central Warehousing
Corporation was established with the main objectives of avoidance of
distress sale of agricultural produce, creating proper storage facilities to
prevent losses in storage and creation of an instrument of expansion of
institutional credit. The Government had introduced various schemes to
ameliorate the sufferings of the economically weaker sections of society. It
is more involved now in price support and price control operations as also in
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provision of easy credit to the farmers to ensure remunerative price for their
produce. The massive price support operations which are carried out by
various Government organizations are designed to avoid distress sale.
These changes continue to have a direct bearing on the progress of public
warehousing in the country.

3.2.7 Laws regulating Warehousing & Enactment of Warehousing

Corporation Act

There are various laws regulating the working of public warehouses in

India and state warehouses act & rules is one of the oldest Act. Almost all
the states have passed the laws to regulate warehousing business of certain
commodities and the first such law was enacted in the year 1947.The State
Warehouses Acts and Rules framed there under with a view to encourage
the establishment of independent warehouses. It is obligatory for any person
carrying on the business of warehousing to run according to the terms and
condition of license. The State Warehouse Act and Rules also outline the
obligation and duties of warehouseman and depositors. In the year 1956 the
Agricultural Produce (Development and Warehousing) Corporation Act, 1956
was enacted by the Parliament .In the Act, the recommendation of the All-
India Rural Credit Survey Committee were broadly incorporated. Finally the
Warehousing Corporation Act passed in the year 1962.

With a view to develop the warehousing sector in the country, the

Government of India has introduced a negotiable warehouse receipt system
in the country. Parliament has enacted the Warehousing (Development and
Regulation) Act. 2007 (37 of 2007). The provisions of the Act has been made
effective from 25th October, 2010. The Warehousing Development and
Regulatory Authority has been setup by the Government from 26th October,
2010.

The main objectives of the Warehousing (Development and

Regulation) Act, 2007 are to make provisions for the development and
regulation of warehouses, negotiability of warehouse receipts, establishment
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of a Warehousing Development and Regulatory Authority (WDRA) and

related matters. The Negotiable Warehouse Receipts (NWRs) issued by the
warehouses registered under this Act will help farmers to seek loans from
banks against NWRs to avoid distress sale of agricultural produce.

Besides State Warehouses Acts and Rules, the following other Acts
have bearing on the warehousing business;

1. The Indian Contract Act, 1872

2. The Sale of goods Act, 1930
3. The Prevention of Food Adulteration Act, 1954

4. The essential Commodities Act, 1955

5. The Custom Act, 1962

6. The Shops and Establishment s Acts of respective State

Governments

7. The Industrial Dispute Act, 1947

8. The Fertilizer (Control) Order, 1957

9. The National Security Act, 1980

10. The Essential Services and Maintenance Act, 1981.

3.2.8 Public Sector Warehousing Agencies in India

At the present, there are three main agencies in the public sector in
India engaged in the field of building large-scale storage infrastructure and
warehousing namely;

i. Food Corporation of India (FCI),

ii. Central Warehousing Corporation (CWC) and

iii. State Warehousing Corporations (SWCs)

The Food Corporation of India (FCI) is the main agency responsible

for the execution of food related policies of the Central Government. The
function of Food Corporation of India primarily relates to the procurement,
storage, movement, transportation, distribution and sale of food grains on
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behalf of the Central Government. It is also engaged in the handling, storage

and distribution of sugar in North Eastern States and Jammu & Kashmir.

The Government of India fixes the Minimum Support Price (MSP) and
Central Issue Prices (CIP) of food grains distributed through the Public
Distribution System (PDS). The FCI coordinates its functions through a
country-wide network of offices with Headquarters at New Delhi and 5 Zonal
Offices, 24 Regional Offices, 168 District Offices, and one Port Office at
Kandla under its control.

The capacity available with FCI is used mainly for storage of food
grains as also certain other notified commodities. The total covered capacity
available with FCI for storage of food grains including the capacity hired from
CWC and SWCs was 288.36 lakhs MT as on 31.3.2010

The Central Warehousing Corporation is the premier warehousing

agency at national level was established as a statutory body in New Delhi on
2nd March 1957. The authorized share capital of corporation is Rs. 100.00
crores. The issued and subscribed share capital of the Corporation is
Rs.74.02 crore. The paid up share capital of the Corporation as on
31.3.2010 is Rs. 68.02 crore. The Central Warehousing Corporation
provides safe and reliable scientific storage facilities and logistics services
for various agricultural and industrial commodities. The total warehousing
capacity in the hands of Central Warehousing Corporation as on 31.03.2010
is 105.98 lakh MT.

The State Warehousing Corporations were set up in different States

of the Indian Union with primary focus on district importance as in the area of
operation. The share capital of the State Warehousing Corporations
contributed equally by the concerned State Government and the Central
Warehousing Corporation. The warehouses (CWC and SWCs) work under
the respective Warehousing Acts passed by the Central and State
Governments. The State Warehousing Corporation spreads throughout the
country with the net work of 1595 units as on 31.03.2010. The aggregate
operating capacity of the state warehousing corporations as on 31.03.2010
is 209.26 Lakhs Metric Tonnes throughout the country.
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The total state wise warehousing capacities held by these three public
sector undertakings are given table 3.1.

Table-3.1
State Wise Storage Capacity available with different Storage Agencies in the
Country as on 31.03.2010
(In lakh MT)

State FCI CWC SWCs Grand Total

Andhra Pradesh and A&N 38.18 15.04 20.32 73.54
Arunachal Pradesh 0.22 - — 0.22
Assam 2.73 0.65 2.50 5.88
Bihar 6.72 1.26 2.57 10.55
Chhatisgarh 8.43 2.84 10.24 21.51
Delhi 3.67 1.51 — 5.18
Goa 0.15 0.41 - 0.56
Gujarat 6.80 7.65 1.53 15.98
Haryana 24.45 5.37 16.24 46.06
Himachal Pradesh 0.25 0.07 — 0.32
Jammu & Kashmir 1.31 - - 1.31
Jharkhand 1.19 0.35 - 1.54
Karnataka 8.37 7.11 10.44 25.92
Kerala 5.37 1.23 2.25 8.85
Madhya Pradesh 9.50 5.17 20.82 35.49
Maharashtra 19.98 16.64 12.48 49.10
Manipur 0.20 - — 0.20
Meghalaya 0.26 — 0.14 0.40
Mizoram 0.23 - — 0.23
Nagaland 0.34 0.13 - 0.47
Orissa 6.43 3.17 4.06 13.66
Philippines — 0.80 — 0.80
Puducherry UT/Chandigarh 3.55 0.19 - 3.74
Punjab 73.73 6.95 57.00 137.68
Rajasthan 16.08 4.01 7.72 27.81
Sikkim 0.11 — — 0.11
Tamil Nadu 9.70 6.31 6.47 22.48
Tripura 0.51 0.24 - 0.75
Uttar Pradesh 26.87 11.63 32.33 70.83
Uttra Khand 2.37 0.71 — 3.08

West Bengal 11.06 6.54 2.15 19.75

Grand total 288.36 105.98 209.26 603.60
Source: www.fin.min
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The warehousing capacity of 105.98 lakh MT belongs to Central

Warehousing Corporation includes 0.80 lakh MT capacities at Philippines.
Hence virtual capacity of CWC in India is 105.18 lakh MT. The capacity of
FCI includes 105.54 lakh MT capacity hired from CWC and SWCs. Hence
virtual capacity of FCI is 182.82 lakh MT and the total warehousing capacity
in India as on 31.03.2010 is 497.26 lakh MT.

In order to have a better insight and indepth analysis on the subject,

the total warehousing capacity held by these three undertakings, their trend
for twelve years period commencing from 1998-99 with initial index as 100
presented at Table 3.2.

Table - 3.2
Warehousing Capacity of three Major Public Sector undertakings in India
(Capacity in Lakh MT)

SI.No. Year FCI CWC SWCs Total Trend

1 1998-99 191.56 73.48 113.89 378.93 100.00

2 1999-00 254.08 74.79 123.74 452.61 119.44

3 2000-01 314.26 83.91 149.05 547.22 144.41

4 2001-02 279.01 89.17 185.49 553.67 146.11

5 2002-03 265.87 91.14 199.31 556.32 146.81

6 2003-04 236.65 94.16 199.85 530.66 140.04

7 2004-05 233.70 101.87 200.38 535.95 141.44

8 2005-06 255.56 100.38 197.05 552.99 145.93

9 2006-07 252.57 102.20 192.20 546.97 144.35

10 2007-08 238.94 98.78 187.32 525.04 138.56

11 2008-09 252.79 105.25 196.87 554.91 147.23

12 2009-10 288.36 105.98 209.26 603.60 159.29

Source: Annual Report of Ministry of Consumer Affairs and Public Distribution,

Government of India
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cn
04
D O Oo- k O Oo O O o O
Capacity (in Lakh MT)
) Ca
cn
|S0
K>
oion

1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009-
99 00 01 02 03 04 05 06 07 08 09 10

Year

Fig. 3.1 : Warehousing Capacity of Three Major Public Sector

Undertakings in India & their Trend

The (Table-3.2) above indicates that the total warehousing capacity

in India held by three major public sector undertakings as on 31.03.1999 is
378.93 lakh MT and Food Corporation of India holds the major share
(50.55 % ) of the total capacity. The capacity held by Central Warehousing
Corporation as on 31.03.1999 is 73.48 lakh MT while the capacity of CWC in
the concluding year of the study is 105.18 lakh MT. The state warehousing
corporations is the second major capacity holder among the three public
sector undertakings. The capacity held with state warehousing corporations
as on 31.03.1999 is 113.89 lakh MT and the capacity as on 31.03.2010 is
209.26 lakh MT.

The total warehousing capacity held with the three public sector
undertakings in the concluding year of the study stood at 603.60 lakh MT
and after giving the effect of internal hiring the warehousing capacity as on
31.03.2010 stood at 497.26 lakh MT.
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3.3 Central Warehousing Corporation

3.3.1 Incorporation

Central Warehousing Corporation (CWC) was setup on 2nd March,

1957 after the enactment of Agricultural Produce (Development and
Warehousing) Act, 1956, which was subsequently repealed and re-enacted
by the Parliament as the Warehousing Corporations Act, 1962.The shares of
the corporation were guaranteed by the Central Government as to the
repayment of the principal and payment of annual dividend at a minimum
rate to be fixed by the Central Government. It is the premier warehousing
agency in India and is one of the biggest public warehouse operators in the
country at National level. The corporation offers logistics services to a
diverse group of clients and operating at 487 warehouses across the country
with storage capacity of 105.98 lakh metric tones as on 31.03.2010. It
provides warehousing services for a wide range of products ranging from
agricultural produce to sophisticated industrial products. CWC is also an ISO
9001:2000, ISO 14001:2004 and OHSAS18001:2007 certified corporation.

3.3.2 Objectives

The main objective of CWC is to provide scientific storage facilities for

agricultural implements and produce and other notified commodities. The
following are some of the important objectives;

• To meet the challenging needs of agriculture, trade, industry and

other sectors by providing scientific warehousing, logistic services
and related infrastructural facilities.

• To assist in the implementation of the Warehousing (Development &

regulation) Act, 2007 with a view to expand credit through banking
institutions against warehoused goods.

• Efficient Human Resources Management in order to enhance

productivity and customers’ satisfaction.
 71

• To achieve global presence in the warehousing services and related

logistics.

• To be a major player in the provision of pest control services.

• To reduce losses during warehousing, handling and distribution.

3.3.3 Function

The primary function of CWC is to provide scientific storage facilities

for agricultural implements and produce and other notified commodities. The
following are the other functions of Central Warehousing Corporation;

• To acquire and build godowns and warehouses at suitable places in

India or abroad;

• To run warehouses for the storage of agricultural produce, seeds,

manures, fertilizers, agricultural implements and notified
commodities offered by individuals, cooperative societies and other
institutions.

• To arrange facilities for transport ofagricultural produce, seeds,

manures fertilizers, agricultural implements and notified
commodities to and from warehouses.

• To subscribe to the share capital of State Warehousing

Corporations.

• To act as an agent of the Government for the purposes of purchase,

ale, storage and distribution of agricultural produce, seeds,
manures, fertilizers, agricultural implements and notified
commodities.

• To enter into with the previous approval of the Central Government,

joint ventures with any Corporation established by or under any
Central Act or any State Act or with any company formed and
registered under the Companies Act, 1956 including foreign
company or through its subsidiary companies, for carrying out its
functions as enumerated in the Warehousing Corporations Act,
1962.
 72

• To establish subsidiary companies.

• To undertake disinfestations services outside its warehouses also in

respect of agricultural produce or notified commodities.

• The corporation may, at its discretion, act as agent for the purpose
of purchase, sale, storage and distribution of agricultural produce
seeds, manures, fertilizers, agricultural implements and notified
commodities on behalf of a company as defined in the Companies
Act, 1956 (1 of1956) or a body corporate established by an Act of
Parliament or of a State Legislature or a Cooperative Society.

• The corporation may, at its discretion, and at the request of the

Central Government or any State Government or a Corporation
established by or under a Central Provincial or State Act, or a
Government Company as defined in section 617 of the Companies
Act, 1956 (1 of 1956) or a Cooperative Society, prepare any project
or render consultancy service for construction of warehouses or any
matter connected therewith;

• The Corporation may operate warehouses, create infrastructure and

arrange facilities for storage, handling and transport of agricultural
produce, seeds, manures, fertilizers, agricultural implements and
notified commodities, bonded cargo, air cargo, containerized cargo
and liquid cargo. Further, the Corporation may also provide
marketing or other warehousing related services in respect of
agricultural produce or notified commodities;

• The Corporation may provide consultancy services, assistance,

finance, programmes or projects related to agricultural produce or
notified commodities and undertake any other activities considered
incidental to its functions; and

• To carry out such other functions as may be prescribed.

• To educate the farmers on the preservation and its utilities;

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3.3.4 Share Capital

The authorized share capital of the Corporation is Rs. 100.00 Crore.

The issued and subscribed share capital of the corporation is Rs.74.02 crore
and the paid up share capital is Rs. 68.02 crore as on 31.3.2010.The capital
has been contributed by Govt, of India, State Bank of India, 35 other
Scheduled Banks, 721 Cooperative Societies, 7 Insurance Companies, 6
Recognized Associations/ Companies dealing in Agricultural Produces. The
major share of capital has been contributed by Government of India which is
55.02 % of the total capital and State Bank of India contributes 21.67 % of
the share capital while other schedule banks contributes 16.05 %. The
capital contributed by 721 co-operative societies account for only 0.23 % to
the total share capital. The capital Contribution is 7.02 % with respect to
insurance companies. The least capital contribution has been made by
Recognized Associations which accounts for 0.01 % only. The graphical
presentation of share capital of CWC presented at Fig.3.1

CAPITAL CONTRIBUTION OF CWC

AUTHORISED SHARE CAPITAL : RS.100.00 CRORE
SUBSCRIBED SHARE CAPITAL : Rs. 74.02 CRORE
PAID UP SHARE CAPITAL : RS. 68.02 CRORE

721 COOPERATIVE SOCIETIES 6 RECOGNISED ASSOCIATIONS

& COMPANIES DEALING IN
INSURANCE COMPANIES AGRICULTURAL PRODUCE OR
ANY NOTIFIED COMMODITY
OTHER SCHEDULED BANKS

Fig :3.2 : Capital Contribution of CWC

3.3.5 Subsidiaries and Joint Ventures

The Corporation has setup a fully owned subsidiary company in the
name as Central Rail side Warehousing Company Ltd. (CRWC) on 10th July,
2007 with authorized share capital of Rs.150.00 crores .The Central Rail
 74

side Warehousing Company Ltd. (CRWC) operating 14 rail side

warehousing complexes (RWC’s) with a total storage capacity of 2.33 lakh
MT throughout the country. The Corporation also holds 50 % equity in 17
state warehousing corporations throughout the country. The Corporation
also formed joint venture with the National Multi Commodity Exchange of
India Limited (NMCE), the first demutualised electronic multi commodity
exchange in the country,.

3.3.6 Management
Central warehousing corporation is controlled by the Ministry of
Consumer affairs, Food and Public Distribution. The Corporation operates
with its network through out the country at three tiers level viz Corporate
Office, Regional Offices and warehouses. The management of the affairs of
the corporation vested with Board which is assisted by an executive
committee and Managing Director. Section 20 of the Agricultural Produce
(Development and Warehousing) Corporations Act., 1956 related to the
management of Central Warehousing Corporation which was replaced by
section 6 of the Warehousing Corporations at 1962. Section 6 (2) of the act
provides,” The Board of Directors shall act on business principles having
regard to the public interest and shall be guided by such instruction on
questions of policy may be assigned to them by Central Government.”
Section 6 (3) states, “if any doubt arises as to whether a question is or is not
a question of policy, the decision of the Central Government shall be final.”

The Board of Central Warehousing Corporation constituted with 14

Directors including Chairmen, Managing director and three functional
directors. The detail composition of the Board of CWC and the organization
structure presented below at Fig.3.3 and Fig.3.4
 75

BOARD OF DIRECTORS

Fig. 3.3 : Board of Directors of Central Warehousing Corporation

 77

3.3.7 Operational Network of CWC

Central Warehousing Corporation operates throughout the country

and even abroad by its three tier operating system. The warehousing units
directly controlled by regional offices and the corporate office located at New
Delhi controls the functions of Regional offices located normally at State
capital. Total number of warehousing units of central warehousing
corporation as an 31.03.2010 is 487. The location of regional offices number
of warehousing units under their jurisdiction presented below in Fig. 3.5.

CHANDIGARH (27)
DELHI (24)

PANCHKULA (30)

JAIPUR (32)
LUCKNOW (45) JL
, .
GUWAHATI (9)
PATNA (20)

BHUBANESWAR (10)

NAVI MUMBAI (5)

HYDERABAD (52)

BANGALORE (41)

Fig. 3.5 Operational Network of CWC

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3.3.8 Human Resources

The success of any organization depends on the utilization and

management of its resources. The resources are either in the form of man,
machine, material or money. Among all these resources the most important
resources is man which is having a bio-logical mind. The only resource
which is having control over the operations performed by all other resources.
The efficient manpower will always produce higher productivity and vice-
versa. Thus, proper and efficient manpower of any organisation plays an
important role in the productivity of the organisation. The corporation
manages its activity with its skillful workforce, the detail of manpower for the
period 1998-99 to 2009-10 has been tabulated in the under mentioned table.

Table-3.3

Human Resources Analysis of Central Warehousing Corporation

(in nos)
SI.No. Year Cat-A Cat-B Cat-C Cat-D Total Trend

1 1998-99 309 1075 4036 3263 8683 100.00

2 1999-00 309 1098 4343 2926 8676 99.92

3 2000-01 315 1061 4323 2880 8579 98.80

4 2001-02 320 1153 4168 2814 8455 97.42

5 2002-03 329 1045 3455 1591 6420 73.94

6 2003-04 316 1137 3321 2039 6813 78.46

7 2004-05 304 1167 3239 1980 6690 77.05

8 2005-06 285 1138 3181 1809 6413 73.86

9 2006-07 261 1142 3070 1719 6192 71.31

10 2007-08 288 1095 3105 1571 6059 69.78

11 2008-09 278 1035 3104 1518 5935 68.35

12 2009-10 265 1057 2995 1448 5765 66.05

Source: Annual Reports of CWC

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From the analysis (Table 3.3) depicts that the total man power as on
31.03.1999 was 8683 while the total manpower in the concluding year of
study stood at 5765. The above table indicates 33.95 percentage reduction
in the manpower as on 31.03.2010 as compared to the manpower as on
31.03.1999.

3.3.9 Corporate Governance

The Warehousing Corporation Act 1962 describes the composition of

Board of Director. The Board has mixed of official and independent
Directors. The Board comprises of a part time Chairman, Managing Director,
Three Functional Directors, Six part time Directors appointed by the
Department of Food and Public Distribution, Ministry of Consumer affairs,
Food and Public Distribution, Government of India and three Directors
elected by the respective class of share holders.

The corporation is a Government of India undertaking in which the

Managing Director and three functional Directors are appointed by the
Department of Food and Public Distribution Ministry of Consumer Affairs,
Food and Public Distribution, Government of India on their pay scales and
perquisites. The Managing Director and Functional Directors are appointed
for a period of five years or till the date of their superannuation or until further
order which ever is earlier and official part time independent Directors are
appointed by the Department of Food and Public Distribution, Ministry of
Consumer Affairs, Food and Public Distribution, Government of India or
elected by the respective class of share holders(Co-operative and Insurance
Companies, Other scheduled Banks) for a period of three years.

The meeting of the Board are generally held at least once in a quarter
at the Corporate Office of the Corporation and scheduled well in advance.
The meetings of the Board are governed by a structure agenda and any
member of the Board is free to recommend inclusion of any subject matter in
the agenda for deliberations. Detail agenda papers are circulated in advance
to facilitate the Board to take independent decisions.
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3.3.10 Corporate Social Responsibility

The Corporation with a great responsibility and sensitivity to

Corporate Social Responsibility (CSR) had joined the Global Compact
Programme (GCP) of the United Nations during 2001. The focus of the GCP
is for internalizing the 10 principles of human rights, labour standards,
environment and anti corruption in the functional areas. With the joining in
GCP, these core values have been institutionalized with the organization.
The Corporation is also one of the founder members of the Global Compact
Network (GCN), New Delhi. The networks primary focus is furtherance of the
idea of the UNGC initiative in India.

As a responsible corporate citizen the Corporation has been

undertaking a number of activities under its Corporate Social Responsibility
scheme. During the concluding year of the study the various activities were
undertaken in the areas of training and education, community development,
health and sanitation promotion of culture, sports, etc. involving a total
expenditure Rs.117.70 lakh. This includes and amount of Rs.8.75 lakhs
spent towards training of farmers on post harvest loss minimization and safe
storage of grain at farm level.

3.3.11 Quality Management System

The Corporation being pioneer in the field of warehousing has

successfully implemented and maintained the ISO 9001:2000, ISO
14001:2004 and OHSAS 18001:2007 certification since 1999.There are 376
units certified under ISO 9001:2000 while 365 unit have been certified for
ISO 14001:2004 as on 31.03.2010. Further, 176 number of units certified
under OHSAS 18001:2007 as on 31.03.2010. The Corporation is having its
quality policy which is the commitment of Chief Executive Officer. The
Corporation is also having its quality objectives and system devised to attain
the said objectives.
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3.3.12 Functional Activities

In the previous chapter, it was analysed and found that the

corporation is the one of the largest / warehouse operator in the country with
national importance. It was set-up with the primary objective for providing
warehousing services. Besides warehousing, the Corporation also carrying
out other ancillary activities such as market facilitation, pest-control services,
Farmer Extension Services Scheme and Consultancy. The functional
activities are analysed in detail as under;

i. Warehousing

The core activity of Central Warehousing Corporation is to provide

scientific storage facilities for agricultural implements and produce and other
notified commodities. CWC, as a bailee of the stock stored at its
warehouses, is responsible to assure its clients for Quantity and Quantity
(Q & Q) of stocks stored at its warehouses. For ensuring safe and scientific
storage, the corporation has evolved “CODE OF STORAGE PRACTICES”
for more than 200 different types of commodities including agricultural
produce, industrial chemicals and other notified commodities. The trained
technical staff of the corporation takes proper care of the stock by
undertaking prophylactic and curative treatment making the Quality control
services provided by CWC of the highest standard in the country.

Besides, general warehousing, the corporation is also operating 99

Custom Bonded Warehouses with 7 Lakhs Metric tonne capacity in the state
of such as Andhra Pradesh, Delhi, Gujarat, Karnataka, Kerala, Madhya
Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar
Pradesh and West Bengal. The concept of Custom Bonded Warehousing
has been promoted with a view to facilitate deferred payment of custom duty
to encourage entrepreneurs and export oriented units to carry out their
operations with least investment. These bonded warehouses are located all
over the country at places well-connected with the port towns for smooth
movement of goods to and from the discharge points.
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The corporation had envisaged the problems in the movement of

imported and exportable goods to and from the port towns and transcended
the hurdles by developing an extensive infrastructure of container freight
stations, inland clearance depots & buffer container yards throughout the
country. Presently, CWC offers import and export warehousing facilities at its
34 CFS/ICD/BCY in ports and inland stations at Ahmedabad, Aurangabad,
Bangalore, Baroda, Chennai, Coimbatore, Delhi, Grater Noida, Haldia,
Hyderabad, Kandla, Kanpur, Kolkata, Kota, Manglore, Mumbai, Nasik, Navi
Mumbai, Paradeep, Pune, Rajkot, Saharanpur, Toothukudi, Udaipur, Vapi,
Varanasi, Verna & Vishakapatnam, where composite services for
containerized movement of import/export cargo are provided.

The Corporation over the years has also brought out ambitious
expansion in the operation of air cargo complexes, which is a major step
towards providing complete services as a multi-modal transport operator.
Presently, CWC is operating 3 air cargo complexes at the international
airports of Amritsar, Goa and Singllur besides managing the
accompanied/mishandled cargo warehouse at Indira Gandhi International
Airport, New Delhi. The Corporation is also running air-conditioned godowns
at Calcutta, Bombay and Delhi, and provides cold storage facilities at
Hyderabad. Special storage facilities have been provided by the Central
Warehousing Corporation for the preservation of hygroscopic and fragile
commodities.

Besides, warehousing CWC also offers the services of rail transport of

containers by running train between Gate-way ports such as from Delhi to
JNPT, Mundra and vice-versa.

ii. Market Facilitation

The corporation in a big way helps the physical distribution,
warehousing and marketing of goods by arranging the facilities of transport
of agricultural produce, seeds, manures, fertilizers and other notified
commodities. The storage charges fixed by the corporation do not include
any element of handling of the goods. The depositors availing the facility of
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storage at the warehouses of Central Warehousing Corporation require the

services handling and transportation of their stocks. Besides storage, the
corporation also offers market facilitation services to its valuable customers
in the area of port, clearing & forwarding, and handling & transportation
inside the warehouse complex and also outside the warehouse complex.
The market facilitation and handling & transportation services include the
operations like loading, unloading and transportation of commodities etc.
The Corporation in consideration charge supervision charges for the
services rendered. It is the second important area of revenue contribution.

iii. Pest Control Service

The Corporation took up disinfestations Services as an ancillary
activity out of its premises to facilitate proper maintenance of stocks at the
client locations. Over the years, this area has expanded vastly thereby
establishing CWC as a major pest control operator providing pest control
services in health and hygiene, anti-termite treatment, grain preservation
including ship, aircraft and container fumigation, thus earning it the title of
National Pest Control Agency. CWC has earned a major breakthrough in
disinfestations of aircrafts of Air India with methyl bromide fumigation using
timer device.

The Corporation rendering state-of-threat pest control services to a

varied group of clients both private and public with the aim to prevent the
economic and health loss caused by pests, rodents and termites by using ISI
marked / WHO approved / eco-friendly pesticides. The corporation has
obtained accreditation of its officers under International Standard for Phyto-
Sanitary Measures (ISPM -15) and Australian Fumigation Accreditation
Scheme (AFAS) - India Programme of AQIS Standards. The corporation
undertakes quarantine fumigation of cargo and fumigation of export
containers / shipments with MBr/Alp as per need of customers. CWC has
primarily focused on pre-shipment fumigation of export cargo as well as on
board (ship) fumigation of containerized cargo. The corporation is now also
offering ship fumigation services with port of discharge guarantee assuring
freedom from live insect infestation at the port of discharge. The Corporation
 84

also undertakes disinfestations of rail coaches, aircrafts, airport premises

etc.

iv. Farmers Extension Service Scheme

The Farmers Extension Service Scheme was launched by CWC in the
year 1978-79 .The following are the main objectives of the scheme: -

• To educate farmers about the benefit of scientific storage and use of

public warehouses.

• To impart training to the farmers on the techniques of scientific

storage & preservation of food grains.

• To demonstrate spraying and fumigation methods to control insects.

• To assist farmers in getting loans from the banks against pledge of

Warehouse Receipt.

v. Consultancy
The Corporation acts as leader in the field of warehousing and
scientific storage. Being pioneer in the field of warehousing and versatile
expertise it provides consultancy services in the area of preparation of
project report, construction of warehouses on deposit work basis. In
consideration, the Corporation earns supervision charges for the services
rendered. The corporation not only earns revenue by rendering the services
of consultancy but also helps a lot in creating storage infrastructure for the
country as a whole.

3.4 Summary
Indian history is full of references to foodgrains storehouses; the
Cholas, Nayaks and Mahrattas had them. At Panhala in Maharashtra, there
is the large grain storage structure built by Chhattrapatti Shivaji. In Tamil
Nadu in the Palace at Thanjavur there is one and another at Tiruvaiyur
nearby. Some foreign visitors who had a look at these compared them to
the modern silos.

The establishment of licensed warehouses in India was first

recommended by the Royal Commission on Agriculture in 1928. The
 85

importance of warehousing was felt seriously and the Reserve Bank of India
in the year 1944 urged all the State Governments by issuing directions to
enact legislation for setting up of warehouses in their concerned States.

In 1949, the Rural Banking Enquiry Committee was appointed by the

Government of India. Among its terms of reference, the Committee was to
consider measures that could be adopted for the extension of banking
facilities in rural areas. The Committee recommended that Provincial
Governments should consider the desirability of advancing long-term loans
at concessional rates of interest to cooperative societies to build godowns in
centers which provided good markets.

In an enquiry conducted by the Reserve Bank of India in 1952,

information was collected by means of a questionnaire as to the state of
existing godowns and their suitability for conversion into licensed
warehouses. The replies indicated that some of the Government godowns
could be readily converted into regular warehouse so far as the technical
quality of the accommodation was concerned. The public sector
warehousing was developed in India with the twin objectives of storing the
agriculture produce and other notified commodities in a scientific manner
with pest free condition and preventing the farmers from distress sell of their
hard raised crop Presently, there are three major public sector undertakings
playing crucial role in the field of warehousing in the three tier system of
warehousing which was recommended in the Rural Banking Enquiry
Committee (1954).

Public warehousing, as we know it today, stems from the

recommendations of the Committee of Direction of the All-India Rural Credit
Survey Committee. It would, therefore, be appropriate to go into some
details of the reasons which led that Committee to formulate its
recommendations regarding the establishment of Warehousing Corporation.

The beginning of public Warehousing in India got recognized with the

enactment of agricultural produce (Development & Warehousing)
Corporation Act. The Act categorically states the setting up of public sector
warehousing agencies at all India level (CWC) and state level (SWCs).
 86

At the present, there are three main agencies in the public sector in
India engaged in the field of building large-scale storage infrastructure and
warehousing capacity namely; i) Food Corporation of India (FCI), ii) Central
Warehousing Corporation (CWC) and iii) State Warehousing Corporations
(SWCs operating with a capacity of 603.60 lakh MT as on 31.03.2010.

The Food Corporation of India (FCI) is the main agency responsible

for the execution of food related policies of the Central Government. The
function of Food Corporation of India primarily relates to the procurement,
storage, movement, transportation, distribution and sale of food grains on
behalf of the Central Government. It is also engaged in the handling, storage
and distribution of sugar in North Eastern States and Jammu & Kashmir.

Central Warehousing Corporation (CWC) was setup on 2nd March,

1957 after the enactment of Agricultural Produce (Development and
Warehousing) Act, 1956, which was subsequently repealed and re-enacted
by the Parliament as the Warehousing Corporations Act, 1962.The main
objective of the CWC is to provide scientific storage facilities for agricultural
implements and produce and other notified commodities. The Central
Warehousing Corporation is the warehousing agency at all India level and it
is managed with a board having 14 Directors with authorized share capital of
Rs.100 crores and paid-up capital of Rs.68.02 crores. The Corporation was
started it operation with 7 nos of warehouses in the year 1957 and reached
with 487 warehouses as an 31.03.2010. The Central Warehousing
Corporation has to carry out the function of acquiring and building
warehouses, storage and preservation of agriculture and other notified
commodities, subscribe to the share capital of State Warehousing
Corporation, rendering disinfestations services besides training to farmer
and other ancillary functions.

The State Warehousing Corporations were set up in different States

of the Indian Union with primary focus on district importance as in the area of
operation. The state warehousing corporations operate through out the
countries with its network of 1595 warehouses with total capacity of 209.26
lakhs MT as on 31.3.2010.

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