Synopsis
On March 2, Union Minister Pralhad Joshi announced that the government is targeting a reduction in logistics costs to 8% by implementing the National Logistics Policy and the PM Gati Shakti Programme, emphasizing the importance of the Central Warehousing Corporation in achieving these objectives.Key Takeaways
- Government aims to reduce logistics costs to 8%.
- CWC plays a critical role in food security and efficient warehousing.
- India's warehousing market projected to reach $35 billion by 2027.
- Significant increase in CWC's storage capacity and modernization initiatives.
- Focus on self-reliance and private sector participation.
New Delhi, March 2 (NationPress) With the swift growth of e-commerce and the government’s emphasis on infrastructure enhancement, the warehousing and logistics sector is regarded as a vital component of economic advancement, stated Union Minister of Consumer Affairs, Food and Public Distribution Pralhad Joshi on Sunday.
During an event commemorating the 69th Foundation Day of the Central Warehousing Corporation (CWC), the minister underscored the organization’s commitment to operational efficiency, transparency, and accountability through the adoption of digital technologies.
Highlighting the government’s dedication to lowering logistics expenses, the Union Minister remarked, “With the introduction of the National Logistics Policy (NLP) and the PM Gati Shakti Programme, we aim to reduce logistics costs from the current 13-14% to global norms of about 8%. CWC, as a premier warehousing entity, is well-positioned to advance these goals by developing modern infrastructure and enhancing efficiency.”
Joshi pointed out CWC’s essential role in government initiatives including the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), ensuring effective warehousing, handling, and transport of critical goods such as food grains, pulses, cotton, and groundnuts.
He noted CWC’s transformation from a traditional warehousing provider to a proactive logistics service provider, stating, “CWC has become a hallmark of efficiency, innovation, and reliability, boasting an extensive network of over 700 warehouses and an operational storage capacity of 148.29 lakh metric tonnes.”
Reflecting on India’s longstanding legacy in warehousing, Joshi stated, “India has a storied history of storage solutions, tracing back to the Indus Valley Civilisation and the cities of Patliputra during the Mauryan and Gupta empires. Today, technology-driven warehousing has transformed the industry, with India’s warehousing market projected to grow at an impressive 15% CAGR, reaching $35 billion by 2027.”
The Minister recognized CWC’s substantial contribution to infrastructure growth, announcing that CWC has increased its storage capacity by an additional 21.65 lakh square feet in FY 2023-24, supported by a record capital expenditure of Rs 613 crore. He further noted that its e-commerce capacity has increased twelvefold since 2021, projected to reach approximately 80 lakh square feet by 2025.
He commended the asset monetization of CWC at 18 locations, generating an investment of Rs 820 crore under the asset monetization strategy. Under the Atmanirbhar Bharat Mission, CWC aims to promote self-sufficiency by developing a robust supply chain, encouraging private sector involvement, investing in technological advancements, and creating a favorable environment.
The Minister reiterated CWC’s pledge to ensure the nation’s food security through efficient storage solutions. He also highlighted Prime Minister Narendra Modi’s decision to enhance the Minimum Support Price (MSP) for rabi crops for the 2025-26 marketing season, which emphasizes the government’s commitment to farmer welfare.
The event began with a presentation on CWC’s performance overview by Santosh Sinha, Managing Director of CWC. He emphasized the modernization of traditional warehouses in Tier-I and Tier-II cities, the establishment of cold storage facilities through the PPP model, and the importance of collaborating with stakeholders.
CWC has increased its capacity by more than 120 lakh sq ft during 2024-25, with storage for 70 lakh cotton bales and 1.90 crore bags of groundnuts in the current season. Due to exceptional performance and dedicated teamwork, the Corporation was awarded ‘Navratna Status’ in April 2024, he added.
