Warehouses and storage industry.

CHAPTER: 1

INTRODUCTION

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 Warehouses and storage industry.

1. INTRODUCTION

A premier Warehousing Agency in India, established during 1957 providing logistics

support to the agricultural sector, is one of the biggest public warehouse operators in the
country offering logistics services to a diverse group of clients. CWC is operating 492
Warehouses across the country with a storage capacity of 10.65 million tonnes providing
warehousing services for a wide range of products ranging from agricultural produce to
sophisticated industrial products. Warehousing activities of CWC include foodgrain
warehouses, industrial warehousing, custom bonded warehouses, container freight
stations, inland clearance depots and aircargo complexes. Apart from storage and
handling, CWC also offers services in the area of clearing & forwarding, handling &
transporation, procurement & distribution, disinfestation services, fumigation services
and other ancillary activities. CWC also offers consultancy services/ training for the
construction of warehousing infrastructure to different agencies
Before the dawn of reforms era, Indian farmers used to dream of having a roof over their
head. Every election season, netas harped on ‘Roti, Kapada aur Makan’ promise to win
over farmers. But, things are changing fast. Now, India’s farming community wants a
roof over their harvested crops. Instead of craving for a shelter for themselves, the ryots
now seek to cover their fruits of hard labour. Thus, 21st century India witnessed the birth
of warehousing revolution. Lack of proper storage facilities leads to attacks by pests and
other organisms. The damage caused through such infestations leads to a reduction in
market value depending upon the extent of damage. In some cases the produce is
declared unfit for consumption and has to be destroyed. This leads to a huge loss for the
farmer. Sensible farmers should take pains to store their agricultural produce carefully so
as to command the most optimum price in the market. Warehousing and transportation
forms the backbone supply chain of all industries. Adequate storage capacity and
strategic location of the warehouse enables efficient functioning of supply and
distribution network and also provides strategic competitive advantage to the business.
Proper material handling, storage conditions and timely movement of goods are

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 Warehouses and storage industry.

necessary as improper handling and prolonged storage can deteriorate the quality of the
stored product especially the perishables goods, biological drugs and food stuffs. As
commodities trade entered a new phase in India, it is in the warehousing sector that India
is seeing a parallel boom. Thanks to huge demand for various agricultural products due to
increasing delivery system in Futures market and the retail growth that is taking place
across the country, warehousing companies are not only increasing their capacity but
scaling up the quality of their storage space. Since warehouses need large tracts of land,
private investment is drying up. Experts say delay
in land acquisition and high costs are hindering the establishment of modern warehouses.
Unlike the real estate business, warehouses do not give immediate returns, which again
blocks investments in this sector. India is the second largest producer of fruits in the
world, producing 46.8 million tons of fruits and accounting for 10% of the world's fruit
production. It is also the second largest producer of vegetables, producing 90.85 million
tons of vegetables and accounting for 14% of the world’s production. Losses during
storage operation accounts for 6-7 % of production in food grain and 20 to 30% in case
of vegetables and fruits.
Warehousing facilities are necessary to prevent the loss arising out of
defective storage and also to equip the farmers with a convenient instrument of credit.
Both the Agricultural Finance Sub Committee (1945) and the Rural Banking Enquiry
Committee (1950) emphasized the importance of ware housing as a method of promoting
rural banking and finance in India. All India Rural Credit Survey Committee (1954)
recommended a three tire system of warehousing: at the national level, state and district
level, village and rural level. At present there are three main agencies in the public sector
which are engaged in building large scale storage/warehousing capacity. They are: the
Food Corporation of India (FCI), Central Warehousing Corporation (CWC), and State
Warehousing Corporation (SWC). FCI provides storage capacity for food grains. It has
its own go downs and it also hires storage capacity from other sources such as CWC,
SWC's, State Governments and private parties. In 1960-61, there were only 40 general
warehouses in the countries with a total capacity of less than 0.1 million tonnes. By the
end of 1988-89, the three public sector units has a storage capacity of nearly 32 million
tonnes. Besides, public sector agencies, co-operatives have also constructed warehouses

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 Warehouses and storage industry.

in rural areas for storage of their members' produce, for stocking of fertilizers and other
inputs and consumer articles. To avoid unfair competition with the go downs of the co-
operative marketing societies, the state warehousing corporations do not open
warehouses at any place below the sub divisional level. By 1987-88, a total storage
capacity of over 10 million tonnes in the co-operative sector was available.

1.1 Crop Storage

Three public sector agencies are involved in building large-scale storage and
warehousing capacities in the country. These are the Food Corporation of India (FCI) -
External website that opens in a new window, central Warehousing Corporation (CWC) -
External website that opens in a new window and 17 State Warehousing Corporations
(SWCs). While the FCI uses its warehouses mainly for storing food grains, the storage
capacities with CWC and SWCs are used for the storage of food grains as well as other
items. Here is a list of the storage capacity available with different states (External
website that opens in a new window.

1.2 Cold storages

Availability of proper cold storages are important for preserving perishable commodities
like milk, meat, eggs, vegetables, fruits, ornamental flowers and other floricultural goods.

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 Warehouses and storage industry.

These cold storages give perishable food items a longer shelf life by preventing them
from rotting due to humidity, high temperature and micro-organisms. This results in a
decrease in loss due to spoilage.Different products are stored at different temperatures.
Flowers will remain fresh even in a moderately cool chiller whereas a product like meat
needs to be deep frozen to prevent it from turning rancid. The government trains
managers and operators of cold storages to store products at the optimum temperature,
maintain machinery, hygiene and administration.The Directorate of Marketing and
Inspection (External website that opens in a new window) of the Department of
Agriculture and Co-operation (External website that opens in a new window) provides
consultancy and technical services to prospective entrepreneurs for the construction,
maintenance and operation of cold storages. Other activities that the Directorate of
Marketing and Inspection is involved in are preparation of a master plan for cold storage
requirements at micro/macro levels, conducting seminars, problem oriented studies and
coordinating research in cold storage.

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 Warehouses and storage industry.

CHAPTER: 2

REVIEW

OF

LITERATURE

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 Warehouses and storage industry.

2. Review of Literature

This paper considers a warehouse sizing problem whose objective is to minimize the total
cost of ordering, holding, and warehousing of inventory. Unlike typical economic lot
sizing models, the warehousing cost structure examined here is not the simple unit rate
type, but rather a more realistic step function of the warehouse space to be acquired. In
the cases when only one type of stock-keeping unit (SKU) is warehoused, or when
multiple SKUs are warehoused, but, with separable inventory costs, closed form
solutions are obtained for the optimal warehouse size. For the case of multi-SKUs with
joint inventory replenishment cost, a heuristic with a provable performance bound of
94% is provided. © 2001 John Wiley & Sons, Inc. Naval Research Logistics
Order picking has long been identified as the most labour-intensive and costly activity for
almost every warehouse; the cost of order picking is estimated to be as much as 55% of
the total warehouse operating expense. Any underperformance in order picking can lead
to unsatisfactory service and high operational cost for its warehouse, and consequently
for the whole supply chain. In order to operate efficiently, the orderpicking process needs
to be robustly designed and optimally controlled. This paper gives a literature overview
on typical decision problems in design and control of manual order-picking processes.
We focus on optimal (internal) layout design, storage assignment methods, routing
methods, order batching and zoning. The research in this area has grown rapidly recently.
Still, combinations of the above areas have hardly been explored. Order-picking system
developments in practice lead to promising new research directions.
Over the last two decades, Logistics Service Providers have become important players in
many chains and industries. To make the proper decisions, one needs to have an insight
in how decisions should be made, and what is important for the company and what not.
In order to do so, the authors solicited the Key Performance Indicator literature --
focusing on areas of general management, SCM, logistics service provision and
warehousing.
Reviews of research on unionization in the USA have classified union election studies
into two categories. The first category of studies has examined unionization by asking

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employees their union voting intent in a hypothetical union election (McHugh and
Bodah, 2002; Viswesvaran and Deshpande, 1998). A major limitation of these studies is
that self-reported voting intent in hypothetical situations might not actually translate to
actual votes in real elections. The second category of studies has examined actual
election results (Deshpande, 2003; Faber, 2001; Sandver and Ready,1998).This study
uses the latter approach. Specifically, this research reviewed the logistics literature and
previous union election literature to identify a number of important factors that could
impact a union election. These factors include whether the union running for election is
affiliated with the International Brotherhood of Teamsters (IBT), the number of unions
participating in the election, the state's public policy towards labor, the size of the
bargaining unit, procedural delays in the certification process, type of election, and type
of warehouse facility.
The international brotherhood of teamsters IBT were involved in a majority of the union
elections in the warehouse and storage facilities sector. This industry is very closely
linked to the trucking industry that is dominated by the IBT. This linkage gives the IBT
more bargaining leverage in disputes in other industries since many industries are
dependent on warehousing and transportation. In addition, IBT is one of the largest and
the most diverse union in the USA. The IBT is highly decentralized and the leadership
promotes strong local unions. Locals can enjoy the expertise and help of various
divisions in the union. Thus, an IBT local in the warehouse and storage facilities sector
can seek assistance from the Warehouse Division of IBT in the design and execution of
successful bargaining and campaign strategies. They also conduct time studies and help
local unions deal with production standards and systems at the workplace

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 Warehouses and storage industry.

Chapter: 3

RESEARCH

METHODOLOGY

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Warehouses and storage industry.

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 Warehouses and storage industry.

3. RESEARCH METHODOLOGY

The methods adopted to fulfill the objective of the study that included collecting
secondary data. I gather the information’s from the internet on the issue reverent to my
thesis topic.

3.1 SCOPE OF THE STUDY

The study is provide knowledge about current situation of agricultural warehousing of
India. Its also give the information about agricultural warehousing system of India.
Current scenario of warehousing corporation.

3.2 OBJECTIVES OF THE STUDY

The over all objective of the thesis is to throw light on “Warehouses and
Storage Industry”

3.2.1 SUB OBJECTIVE

 To study the current warehousing scenario in India.

 To give introduction about warehousing.

 To study the Govt. polices and provision for the growth of Agriculture by improving
Warehousing and storage condition in India.

 To study the need of warehousing in agriculture sector.

 To find out the major player in warehousing sector.

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 Warehouses and storage industry.

3.3 RESEARCH DESIGN

Research Type
Descriptive method is used in the research.

3.4 DATA COLLECTION METHODS

Data will be collected for the study.

Secondary Sources – The secondary sources used are already in existence

in the form of books, internet periodicals and institutes brochures.
Magazines Hand book of agriculture
Journals Indian Management.
Websites: www.agmarnet.nic.in
www.google.com

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 Warehouses and storage industry.

CHAPTER: 4

FINDINGS
AND
ANALYSIS

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 Warehouses and storage industry.

4.1 Role Of Warehouse In Future Market

Among the investment avenues, commodity futures trading is a fast growing sector with
huge untapped potential, along with the financial markets. The major difference between
commodity and financial markets is that, in commodities futures physical delivery takes
place where as in the capital market it does not. In these markets, there are farmers,
industrialists, warehouses, consumers, dealers and traders, who buy and sell
commodities. There are warehouses, which stores commodities and there are consumers,
who consume them eventually. In the Indian context, warehouses are necessary for the
commodity sector and commodity future trading especially for farmers because
agricultural commodities constitute a major segment of the Indian economy. When the
role of warehouse is necessary The role of a warehouse is most necessary in the spot
market where a farmer after having harvested his crop sells them to commission agents
who in turn sells them to a Mandi. The Traders in Mandi may then sell it to a large
consumer or to a trader who in turn will sell it to some other consumer, industry, exporter
or miller at the right time and right price. The Goods during this period are stored in the
warehouse. It is seen that today 80% of the warehousing capacity is used by the
Government for storing various commodities under the Public Distribution System and
for storing fertilizers Commodities form almost 58 percent of India's Gross Domestic
Product out of which 22 percent is agriculture, and two third of the population depend up
on agriculture for livelihood. Warehousing forms the basic platform of delivery based
trading in commodity futures. Warehouses play an important role in commodities futures,
as most of trades are settled with delivery. That is, if the seller chooses to handover the
commodity instead of the difference in cash, the buyer must take physical delivery of the
underlying asset. One of the major segments contributing to a rapidly growing logistics
industry is the warehousing business. The growth in international trade coupled with the
rise in containerization levels has led to high demand for warehouses. This creates

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tremendous opportunity for the private sector. The market, which is valued at INR 20 bn,
is expected to grow due to the demand generated by importers and exporters for
specialized services.The report begins with an overview of the industry indicating market
size, growth, current state of the market and the infrastructural resources available. The
report highlights various types of warehouses, categorized on the basis of ownership and
usage. An analysis of the various investment options available to players entering the
market has been provided in order to assist new entrants. The report covers the various
initiatives taken by the government towards the development of warehousing sector
including introduction of Single-tax Goods & Services Tax (GST) regime and
Warehousing Act 2007, investments in logistics parks and free trade warehousing zones
(FTWZs), and development of infrastructural facilities. The report identifies the key
characteristics and trends including strong macroeconomic fundamentals, change in tax
policy boosting warehouse outsourcing, significant investments by the logistics providers
in warehousing segment, entry of realty players and large scale investments from private
equity firms.Competition section profiles major private and public players in the market.
The section contains a snapshot of their corporation, future investment outlook as well as
their financial performance, providing an insight into the existing competitive scenario.

4.1.1 Computerization of State Warehouses

Modern IT integrated warehousing management systems (WMS) have redefined the

storage function and are integral part of logistics and distribution network. WMS is a
software program designed to direct the flow of material both into and out of specific

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 Warehouses and storage industry.

storage locations in an ordered sequence, based upon a predetermined set of operational

parameters. They provide directed stock rotation, intelligent picking directives, automatic
consolidation and cross-docking
to maximize the use of valuable storage space. The system directs and optimizes stock
put-away based on real time information about the status of bin utilization. Warehousing
management systems utilize auto ID Data Capture technology, such as Barcode scanners,
mobile computers, wireless LAN and RFID to efficiently monitor the flow of products.
The key advantage of WMS are :
� Cost effectiveness
� Capacity optimization
� Capacity planning
� Data capture
� Reduces labour cost
� No need of physical inventory
To increase the efficiency and optimize the functioning of warehouses in Madhya
Pradesh (MP), the Government of Madhya Pradesh (GOMP) is keen to facilitate the
computerization of all the State’s warehouses. The project wishes to integrate the
functioning of all the warehouses via a virtual intra-State web network by employing
high end WMS software, hardware and other peripherals. The System would streamline
the functioning of all the warehouses and would enable optimum capacity allocation and
utilization which is a key requirement, keeping in view the huge gap between demand
and availability of the present warehousing space in the State. For the envisaged project
the Government is willing to partner with the leading IT

4.2 CURRENT TRENDS AND CHALLENGE OF

WAREHOUSE

Currently, the majority of storage warehouses are made up of metal components. All of
the building's parts like beams, frames, walls, and roofs are made from high quality steel.

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 Warehouses and storage industry.

Using these materials, the structure is more flexible and thus can be modified easily in
shorter time compared to traditional warehouses which are made of wood or concrete.

4.2.1Technology

Bar coding is an optical machine-readable representation of data. It requires all received

items to be scanned with their labels clearly visible by workers. It results in much more
labour-intensive process. Till now, bar-coding technology is still commonly applied in
warehouse and DC. Several warehouses/DC has adopted RFID technology as it has high
returns on investment potential when it can make use of its reading characteristic to
overcome previous limitations or to enable new business processes. With RFID,
inventory traceability could be updated in real time without product movement, scanning
or human involvement. RFID can also be used for many operations such as receiving,
putaway, picking and shipping. The system allows inventory status to be determined and
shipping & receiving documents to be generated automatically. It triggers automatic
orders for products that are low in inventory. On top of that, it also prevents errors in the
picking and putaway processes and is valuable in selecting situations where they are
strong needs for security. Eventually, RFID can reduce inventory levels, storage,
handling and logistics expenses, eliminate manual labour requirements, which provide
direct cost savings and often improves accuracy, which produces other benefits.

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 Warehouses and storage industry.

However, warehouse and DC must co

nsider whether the cost of implementing the new technology can be offset by the cost
saving.

Despite the capability of RFID technology to provide a variety of benefits and

advantages over the bar-code technology, the high cost and a number of technical hurdles
have prevented RFID from attaining wide use in warehouse and distribution center
operations.

(An example of RFID)

4.2.2 Software

Technology advancements in warehouse and distribution centers has managed to counter

most of the past trends and challenges. The introductions of soft ware solutions such as
warehouse management system (WMS), transportation management (TMS), and
Electronic Data Interchange (EDI), have been utilized to reduce costs and improve
service levels.

To aid storage, WMS, which is interfaced with Enterprise Resource Planning system
(ERP), matches the processed data against customer order to validate that the inventory

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 Warehouses and storage industry.

count is accurate, generating a shipping label and information for the pallet. EDI refers to
the transmission of data and information between organizations by electronic means. It
basically speeds up the data transmission, as for instance, it can be utilize by a
manufacturer to inform a warehouse instantly to distribute a good to a retailer.

(Efficient logistical process with Warehouse management system WMS)

Ideally, with the implementation of these soft wares, companies are able to respond
swiftly to changes in inventory demand and supply, virtually eliminating the risk of stock
outs, delayed deliveries intelligently, improves the efficiency of the warehouse by
directing putaways as well as to maintain accurate inventory by recording warehouse
transactions.

4.2.3 Storage system

As most of the warehouses/DC maximizes vertical space as high as 20 meters, high rack
very narrow aisle racking (VNA) or high bay racking is preferred over the other storage
systems. VNA can operate up to 20 meters high with adjustable pallet racking (APR) by

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 Warehouses and storage industry.

using narrow aisle stacker (turret trucks). Aisles are therefore narrower with sliding pallet
handling mechanisms on the mast. High bay racking is pallet racking up to the heights of
30M - 35M. The operation of the racking system is assisted by the means of stacker
cranes, giving access to all pallet locations. However, if there are any unpredicted
accidents such as a fire, the inaccessibility of the racking system will be a hindrance; in
this case, special fire sprinkler systems may be required. Space utilization of the
warehouse is good due to the use of height and reduced aisle width for both racking
system; but, high set-up costs will be incurred for both storage systems.

(An example of live storage racking)

On the other hand, an increasing number of warehouses have adopted the palletized live
storage. Palletized live storage is popular in warehouses and DC because it has
unsurpassed storage density, FIFO, and supports high throughput per line item;
nevertheless, it is expensive.

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4.2.4 Material handling equipments

Many warehouses are still extensively using AS/RS as their optimal choice of material
handling equipment to improve productivity of transporting, buffering and sequencing of

standard and non-standard loads.

(AS/RS)

The advantages of AS/RS include savings in labour costs, improved material flow and
inventory control, improved throughput levels, high floor-space utilization, increased
safety and increased stock rotation. Furthermore, some modern warehouses are already
completely automated, whereby pallets and goods are moved with a system of automated
conveyors and automated storage and retrieval machines coordinated by programmable
logic controllers and computers running logistics automation software. Its high-rise
storage capabilities make optimal use of available floor space, but if the system failed,
the operators may have difficulty accessing to the stock store on the high rack.

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 Warehouses and storage industry.

Additionally, goods are usually handled by a wide range of equipment. There are the
pallet trucks, counterbalance trucks, order picking truck, conveyors and etc. These
equipments have speed up the movement of goods in the warehouse, yet incurring high
cost for the usage of such equipment.

4.2.5 Layout Design

The current and future trend and challenges of Warehouses/DC is to ensure that the
layout design is effective and flexible for different purposes. The layout is also more
sophisticated and user-friendly today. An effective layout design should facilitate
changes in warehouse spaces within the building, accommodating the need for loading
docks, and unloading spaces. It should also address material handling practices, such as
JIT, which have fundamentally changed the operation of warehouses and distribution
centres, and will continue to do so.

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 Warehouses and storage industry.

(U-flow & Through-flow)

The layout and configuration for the warehouse operation are optimised, with the help of
efficient material handling and storage processes. Receiving and shipping bays are best
separated to avoid congestion and confusion. The adoption of U-flow or Through-Flow
will be determined by the location of the receiving and shipping area. Alternatively,
material-handling methods will also determine other building aspects, such as aisle
widths, lighting design, need for mezzanine space, fire protection, and egress
design.Nowadays, cross-dock activity is broadly adopted in distribution centres, so as to
be competitive in the most cost-effective and efficient manner possible. Hence, in order
to obtain a successful cross-dock activity, it has to involve stringent yet agile quality
control (QC) operations to avoid delays, bottlenecks, or the costs associated with
shipping of inferior product. The sharing of information, having clear communication,

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conformance of goods, product availability and establishing good relationships with the
supply chain partners are essential for effective cross docking.
Most modern warehouses are designed with higher bays to take advantage of vertical
storage. Some examples of vertical storages are high rack narrow aisle racking, high bays
and vertical carousel. In addition, floor area saving and construction of quality floors
have become key considerations in the

design of a modern warehouse. Racking

heights have increased from eight to fourteen meters, resulting in the increased usage of
high reach trucks. This new trend implies that high tolerance concrete floors with a low
wear/maintenance resistance with due regard as to where joints are placed, are required
for higher floor loadings and increased load as well as trafficking. Presently, warehouses
are designed around the handling equipment, with the racking being laid out according to
the handling equipment. Therefore, utilization of space is maximized while providing
adequate circulation paths for personnel and material handling equipment such as forklift
trucks.

4.2.6 Security

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 Warehouses and storage industry.

Security in the warehouse/DC basically refers to work-related safety and product

security. Warehouse/DC operations include the use of trucks, conveyors, materials
storage, manual lifting/handling etc which could pose hazardous danger to the
workers.Some serious operational safety problems include inadequate fire safety
provisions, improper blocking of exits and egress paths, chemical exposure, improper
usage of lockout procedures, lack of ergonomics, and failure to wear personal protective
equipment. Presently, most of the warehouses/DC has incorporated proper signage for
personnel to take precaution in view of their workers’ safety. The specific strategy for the
warehouses signs must be determined early in the facility design process. Precaution for
unexpected accidents such as fire is also essential – this includes engineering fire
sprinkler systems to cover the warehouse/DC‘s entire storage configuration.

(CCTV)

Moreover, appropriate security systems are also incorporated into the safekeeping of
products in the warehouse. For instance, only authorized personnel are permitted into the
facility. Most warehouses/DC has also adopted the swipe card access systems for all
staff, and has installed CCTV at some key areas. Full-time RFID monitoring could also
be installed for a secure storage area to provide theft detection for high-value goods,
because savings from loss or theft of these high value items can offset the higher tag
costs. Some warehouses/DC even employs security guards to secure the whole area of
the facility.

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 Warehouses and storage industry.

(use of RFID technology in assuring that the goods are intact)

Proliferation (e.g. increasing number of SKU for the same product) and personalization
of products (e.g. customers want their name on the products) have impacted warehouse
operations significantly. It results in an increase in the inventory carrying cost, more
storage space required, as well as more shelving. Customers have zero-tolerance for
errors such as incorrect picking or shipping. In addition, customers also prefer a shorter
lead-time for their goods to arrive – this requires immediate allocation, picking, and
shipping of goods. Cost in fuel for transportation of goods is increasing drastically. To
seek for value-added services in a warehouse, customers expect distributors to perform
quality control tasks, (re)packing, fulfillment documentation, and labeling. As a result of
stiff competition from other rivals, companies have to control their operational costs and
stock turns to achieve a competitive edge. At the moment, due to the increasing
complexity of warehouse and distribution center operations, labour management must be
strengthened and improved. For instance, workers are required to upgrade their technical
skills through training of standards and performance constantly. In this way, workers
would be able to operate different software and machines, but this could incur high
overhead cost.The past emerging trends and forces continues to endeavor changes in
warehouse and distribution center. As such, some companies choose to outsource their
warehouse operations to public or contract warehouses through 3 PLs as a way to achieve
higher flexibility and compete globally with other players. However, due to the gradual

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implementation of outsourcing, the distance between the manufacturer and retailer grow
considerably in many domains where at least a warehouse is needed. This results in a
restructuring of the initial JIT concept in the Distribution center. Executives today are
grappling with several challenges in warehousing as they go about their business of
satisfying customer demands while remaining competitive in the market. The challenges
range from shorter lead times and more demand for value-added services to labor
management and keeping up with advances in technology and automation. They will also
need to use tools (for example, RFID, direct-store-delivery, consolidation, etc.) to reduce
costs to remain competitive. Ultimately, in the future prospect, we would be anticipating
more new trends, as well as facing new challenges!

PAST TRENDS AND CHALLENGES OF WAREHOUSES

Warehouse (WH) is a commercial building which is for the storage of goods for varying
amounts of times until demanded by customer. On the other hand, Distribution Centre
(DC) is a specialized warehouse that caters to rapid movement of goods such as break
bulk facility whereby incoming bulk shipments are broken into smaller shipments, then
distribute to retailers, wholesalers or directly to consumers. The operations are based on

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the purpose of the DC – including order fulfillment and cross-docking. A DC normally

serves a much larger geographical territory than a warehouse and is used more in the
outbound flow of finished products.
In relation to our selected topic, we will be categorizing our elaborations into: the past,
as well as the current trends and challenges facing warehouses and DC.

In the past, many old warehouses were built using brick walls as
bricks were commonly used in construction. However, this restricted any expansion or
structure change in the warehouses. The constant application of traditional warehousing
approach had limited the ability to share information such as transportation & shipping,
inventory counting and control, as well as performance management solutions. In
addition, the old approach had also emphasized on batch shipments – this inevitably
lengthened the lead time of the goods to be sent to various customers.In warehouse and
DC, Bar-coding labeling had also been extensively used for identification and picking
accuracy of the storage good. However, bar-codes can run the risk of getting wet and
scratched due to mishandling or a harsh environment, which prevents accurate reading by
the scanner. Human intervention is labour intensive and

costly. Manual method

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could also be a hindrance to ensure if the inventory remains up to date due to oversights,
errors, and internal shrinkage. Automated Storage and retrieval systems (AS/RS) in
warehouses was introduced in the 1950s to eliminate the walking which accounted for
70% of manual retrieval time, therefore improving productivity and efficiency would
result in the reduction of overall cost.
Also, warehousing and distribution centers had to cope with a variety of emerging
business trends and forces. Competitive forces have been influencing the operations of a
warehouse. The buying habits had dramatically changed for manufacturers, wholesalers,
retailers and consumers alike. Service levels had become increasingly more demanding
as well. These trends manifested themselves in numerous ways. Distribution operations
had been obliged to manage less inventory levels, smaller order sizes, larger SKU,
quicker order turnaround, increased customer packaging, and valued-added service
requirements.

Additionally, Just in Time (JIT) was introduced to the Distribution Center in the early
1950s to ensure a significant cost-reduction, as well as to improve the returns on the
investment of the business by reducing on-hold inventory. For most Distribution Centers,
cross-dock has also been a popular system as they are able to achieve economies of scale,
thus reducing overall cost.

Traditionally, companies would prefer to own or lease their private warehouses instead of
using public warehousing approach. In addition, they would also secure a longer contract
relationship with the leaser, resulting in inflexibility in deploying capital and the inability
to adapt to the changing market development.

The above video shows the new trends of modern warehousing. It highlights the
importance of keeping up with technological advancements by using conveyors, RFID
intergration and Automated Storage and Retrieval System(ASRS).
Yi Lin's Reflection

Army Logistics Base (ABL) is a centralised warehouse,

developed to produce a seamlessly integrated supply chain and enhance inventory
management. Some of the items stored are autospares, general and medical supplies.
ABL adopts a Through flow layout. Each warehousing floor has a height of
approximately 30 metres. The types of storage system install are pallet/bin ASRS,
vertical carousel, narrow aisle and mobile racking.
VNA forklift is used to assist in narrow aisle racking. For small items (medical supplies)
that require temperature and humidity control, the vertical carousel system is used. Units
of bins are driven electronically to bring the parts to the pickers. It maximises space
utilisation, accuracy and safety. If you put your hand at the opening when it is rotating,
the machine will stop. At the enlistee equipment warehouse, through flow layout is
adopted with live storage system whereby new goods are stored near the inbound and old

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 Warehouses and storage industry.

ones are being stored near the outbound. (FIFO)

In the past, at the outbound, enlistee is to collect their equipments at the counter. Now,
there is an E-mart where it pack and deliver. Path for vehicle and human are separated
which is a good practice to ensure safety. In the autospare warehouse, it uses the bin
ASRS (width 13m, height 9m) which have a capacity of 2900 bins. Cranes are used to
move the bins to the location. (1hour: 60bins)

Overall, I think that ALB meets the objectives of warehousing and it is a good role model
for other warehouses.
Roland's Reflection
The field trip visit was indeed an eye opener for me. I would never have imagined that
Singapore's first centralised logistics base - the Army Logistics Base (ALB) is such an
efficient storage facility that saves land and increases storage capacity. In fact, the
development of the state of the art ALB has freed up labour, saved land and also allowed
quicker retrieval of stocks, thus improving efficiency and effectiveness.

From my observations, I realized that ALB adopts a through flow layout because the
incoming and outgoing functions are at opposite ends. Each warehousing floor has a

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 Warehouses and storage industry.

height of approximately 30 metres. Therefore, the storage systems installed are vertical
carousel, pallet/bin ASRS (Automated Storage and Retrieval System), high rack narrow
aisle racking, mobile racking and shelving.vertical carousel system is used to store
medical supplies and items. These medical items require temperature and humidity
control and therefore are stored in an air conditioned room to ensure goods safety.
Vertical carousel system is preferred because it increase cubic capacity of warehouse and
provides excellent product security as well as minimizes employee injuries. In addition,
at the autospare warehouse, bin ASRS (width 13m, height 9m) which has a capacity of
2900 bins, is used. Cranes are then used to move the bins to the location at the rate of
60bins per hour. The fully computerized ASRS is easy to operate and allow fast access to
materials. Lastly, I discovered that VNA Truck is used in narrow aisle racking. At the
enlistee equipment warehouse, through flow layout is also adopted with live storage
system whereby new goods are stored near the inbound and old ones are being stored
near the outbound. In this case, First In First Out (FIFO) system is applied.
It was indeed a fun and enriching experience for me. Learning DCM would never be so
boring again!

4.3 MAJOR PLAYER IN THE SECTOR

4.3.1 Food Corporation of India

The Food Corporation of India was set up under the Food Corporation Act 1964 and on
14th January, 2006, FCI completed 41 years of its existence, in order to fulfil following
objectives of the Food policy:
1. Effective price support operations for safeguarding the interests of the farmers.
2. Distribution of food grains throughout the country for Public Distribution System; and
3. Maintaining satisfactory level of operational and buffer stocks of food grains to ensure
National Food Security.Since its inception in 1965, having handled various situations of
plenty and scarcity, FCI has successfully met the challenge of managing the complex
task of providing food security for the nation. A strong food security system which has
helped to sustain the high growth rate and maintain regular supply of wheat and rice right
through the year. The efficiency with which FCI tackled one of the worst droughts of the

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 Warehouses and storage industry.

century not only cemented its role as the premier organization in charge of food security
in India, but also brought it accolades from international organizations. FCI was set up to
secure strategic position in food grains trade and implement the National Policy for Price
Support operations, procurement, storage, inter-state movement and
distribution operations, in short to operate the Central Pool. Today, FCI is the country
leader in food grains management and is fully focused on helping farmers feed the
country, better and more efficiently, today and tomorrow. Food constitutes the main
requirement of every human being. In a sub-continent like India where millions of
mouths depend on Targeted Public Distribution System (TPDS) and other welfare
schemes of Govt. of India, FCI, plays a leading role in making food grains available
to the extent of 30 lakh tones during a month, to respective State Govts. For its
distribution among beneficiaries. To procure, store, preserve and move such a huge
quantity of stocks spreading over vast areas with its intricate network is, indeed, a nerve
and back-jerking task.

4.3.2 Central Warehousing Corporation

A premier Warehousing Agency in India, established during 1957 providing logistics
support to the agricultural sector, is one of the biggest public warehouse operators in the
country offering logistics services to a diverse group of clients. CWC is operating 490
Warehouses across the country with a storage capacity of 9.8 million tones providing
warehousing services for a wide range of products ranging from agricultural
produce to sophisticated industrial products. Warehousing activities of CWC include
foodgrain warehouses, industrial warehousing, custom bonded warehouses, container
freight stations, inland clearance depots and air cargo complexes. Apart from storage and
handling, CWC also offers services in the area of clearing & forwarding, handling &
transportation, procurement & distribution, disinfestation services, fumigation services
and other ancillary activities. CWC also offers consultancy services/ training for the
construction of warehousing infrastructure to different agencies.

FUNCTIONS:

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 Warehouses and storage industry.

1. To acquire and build warehouses at suitable places in India and abroad;

2. 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;
3. To arrange facilities for transport of agricultural produce, seeds, manures fertilizers,
agricultural implements and notified commodities to and from Warehouses.
4. To subscribe to the share capital of State Warehousing Corporations;
5. To act as an agent of the Government for the purpose of purchase, sale, storage and
distribution of agricultural produce, seeds, manures, fertilizers, agricultural implements
and notified commodities;

Services provided by CWC:-

1. Provision of space to accept notified commodities from various clients.

2. Acts as an enabler for credit through pledge of negotiable warehouse receipts with
banks.
3. Scientific storage through a chain of 490 numbers of warehouses all over the country
at reasonable rates.
4. Cold/Air Conditioned Storage for perishables like fruits, vegetable, dairy products,
drugs & pharmaceuticals,
5. Custom Bonded Warehouses at Ports Metro-politan towns, industrial complexes and
inland stations for various import/export cargo.
6. Air-cargo Complexes to provide storage facilities at Air Ports for import/export of
cargo and unaccompanied baggage.
7. Container Freight Stations (CFSs) and Inland Clearance Depots (ICDs) for handling of
import containers, their de-stuffing and delivery of stocks; consolidation and stuffing of
export cargo for onward transmission to Gateway Ports by road/through rail.
8. Handling and Transport facilities to depositors on their request on actual plus nominal
supervision charges.
9. Orderly Marketing – facilities through handling, grading, storage and distribution of
commodities on behalf of Import Marketing and Consumers Centers.

33
 Warehouses and storage industry.

10. Help the depositors to keep his goods indemnified against loss of damage due to fire,
floods and burglary.
11. CWC takes up construction programme of warehouses for storage for other
companies.
12. Under Farmers Extension Service Scheme, CWC educates the farmers on scientific
preservation at farm level to reduce post harvest losses.
13. CWC also provides Pest Control Services at the door steps of farmers, traders,
cooperatives, government organizations, exporters and importers at very competitive
rates with a network of technically trained man-power throughout the country. CWC has
got recognition from the Directorate of Plant Protection & Quarantine, Ministry of
Agriculture and has authorized man-power to undertake fumigation of export and import
cargo. Also provides ship fumigation and air craft fumigation services and disinfestations
services to many more government and private organizations, hospitals, residential
colonies, railway coaches etc.
14. Expert advice and training on storage problems.
15. Consultancy services – preparation of projects, techno-economic feasibility report in
respect of all warehousing facilities.

Subsidy provided by CWC: -

CWC provide subsidy under various schemes for the establishment of warehouse, these
are:-
1. Under Farmers Extension Service Scheme, Central Warehousing Corporation provides
30% rebate on Storage Charges to the bonafide farmers.
2. 10% rebate is given on Storage Charges to the Cooperative Societies for their stocks
stored in Central Warehouses.
3. CWC also provides rebate to State Civil Supplies Corporation up to 10% in Food-
grain and 5% in other commodities.
No subsidy is provided by Central Warehousing Corporation on Storage Charges.

4.3.3 State warehousing Corporation

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 Warehouses and storage industry.

State Warehousing Corporations exist in 17 States to provide storage facilities and pest
control services for various agricultural commodities belonging to farmers of that State.
These warehouses work under different Warehousing Acts enacted by the respective
State Governments.

Private Player:-

4.3.4 National Bulk Handling Corporation Ltd.

NBHC has emerged as India's leading integrated commodity and collateral management
company distinguished as the first and only such service provider in the country to obtain
an ISO 22000:2005 certification and a 'Category G' membership of GAFTA (The Grain
and Feed Trade Association, UK). NBHC is part of a unique commodity ecosystem,
which provides Complete Solutions in Commodity and collateral Management along
with its stakeholders, Financial Technologies (India) Ltd. (FTIL), State Bank of India,
and the FTIL group companies: Multi Commodity Exchange of India Ltd. (MCX) and
National Spot Exchange Ltd. (NSEL). It has a pan-India presence managing 381 storage
facilities (warehouses and cold storages) under the lease and franchisee basis, covering
an expanse of over 1.8 million MT capacity and admeasuring 10 mn sq. ft.

Services provided by NBHC:-

I. NBHC “Cecure” : -
'NBHC Cecure' allows banks to proactively manage risks emanating from commodity
based lending. NBHC has been empanelled and has ongoing arrangements with 24
leading public, private sector including multi-national RRBs and co-operative banks.
NBHC facilitates the commodity financing for all participants in the commodity value
chain from farmers, corporate houses, traders and processors. As of July 2008, through
these arrangements it has enabled funding worth of Rs.5000 crore against commodities
under management valued over Rs.7,000 crore. These stocks of over 4 million MT are
managed at 3000+ storage facilities spread at 700+ locations.

II. “NBHC CommGuard”:-

35
 Warehouses and storage industry.

“NBHC CommGuard” offers a comprehensive range of high-quality, environment-

friendly, and customised pest management solutions. With licences in 9 states and ports,
its solutions in pest management, food safety and compliance requirements offer optimal
results to its clients.

III. “NBHC ProComm” :-

“NBHC ProComm” an integral part of the commodity ecosystem provides the
appropriate testing, inspection and grading & certification services.

IV. “NBHC Mandate”:-

“NBHC Mandate” performs audit and accreditation of warehouses/cold storages and
valuation of commodities. It also appraises the ways and means by which resources may
be deployed to achieve economy and efficiency of costs.

4.3.5 National collateral Management Services

Ltd.
The National Collateral Management Services Limited (NCMSL) is the country's leading
organization providing a bouquet of services to manage risks across various stages of
commodity and inventory handling under a single umbrella. Incorporated in 2004, under
the provisions of the Indian Companies Act, 1956, NCMSL is a governed by an
independent and professional Board. Each of our promoters and shareholders are either
reputed and leading banks or organizations, viz . ACE Geneva, Bank of India, Canara
Bank, Corporation Bank, HAFED, Indian Bank, IFFCO, HDFC Bank, Karur Vysya
Bank, NCDEX, Punjab National Bank and Yes Bank. Our pan-India operations help us
provide commodity handling and risk management services to clients across the country.
They are geared to handle operations encompassing the sale, purchase, trading, and
movement of commodities & inventories. Each of their warehouses serve as commodity
multi link points (CMPs) providing a package of services, including dematerialization
and materialization of physical stocks of commodities, testing & certification and
funding against warehouse receipts. They are present in 12 states across India and our

36
 Warehouses and storage industry.

warehouses manage as many as 42 agricultural commodities. NCMSL also offers

storage services for non-agricultural commodities and inventories.
Their warehouses are in the last stage for obtaining certification under ISO 9000 : 2001
for our quality management systems.

Their services:-
i. Storage and preservation
ii. Procurement and supply chain
iii. Collateral management
iv. Testing and certification
v. Trade and commodity intelligence
vi. Wether Intelligence
vii. Crop intelligence

4. Other private players in warehousing:-

i. Hindustan Unilever Ltd. :- Head office at Banglore.

ii. Relience industries Ltd.:- Head office at Mumbai.
iii. Annapoorani Cold Storage (P) LTD :- Head office at Chennai.
iv. Memari Cold Storage PVT. LTD.:- West Bengal
v. Vihas Fasteners:- Head office at Mumbai.
.

4.4 RURAL GODOWN SCHEME

It is well known that the small farmers do not have the economic strength to retain the
produce with them till the market prices are favorable. There has been a felt need in the

37
 Warehouses and storage industry.

country to provide the farming community with facilities for scientific storage so that
wastage and produce deterioration are avoided and also to enable it to meet its credit
requirement without being compelled to sell the produce at a time when the prices are
low. A network of rural godowns will enable small farmers to enhance their holding
capacity in order to sell their produce at remunerative prices and avoid distress sales.
Accordingly, Grameen Bhandaran Yojana, a Capital Investment Subsidy Scheme for
Construction /Renovation of Rural Godowns was introduced in 2001-2002 and extended
up to 31.03.2007.The Scheme has now been approved for implementation during the
years 2007–12.

4.4.1 OBJECTIVE

The main objectives of the scheme include creation of scientific storage capacity with
allied facilities in rural areas to meet the requirements of farmers for storing farm
produce, processed farm produce and agricultural inputs; promotion of grading,
standardization and quality control of agricultural produce to improve their marketability;
prevention of distress sale immediately after harvest by providing the facility of pledge
financing and marketing credit; strengthen agricultural marketing infrastructure in the
country by paving the way for the introduction of a national system of warehouse
receipts in respect of agricultural commodities stored in such godowns and to reverse the
declining trend of investment in agriculture sector by encouraging private and
cooperative sectors to invest in the creation of storage infrastructure in the country.

4.4.2 SALIENT FEATURE

· Godown cannot be in the limit of Municipal Corporation.

· Subsidy will be given if minimum capacity is 100 tones and max. is 10,000 tones.
· Subsidy under the scheme is linked to institutional credit only.

38
 Warehouses and storage industry.

· 33.33% in case of projects located in North – Eastern States, Women Farmers/ their self
help groups / co-operatives and SC/ST entrepreneurs & their self-help groups/ Co-
operatives.
· 25% to all categories of farmers (Other than Women Farmers), agriculture graduates,
cooperatives and State/ Central Warehousing Corporations.
· 15% to all other categories of individuals, companies & corporations etc.

4.4.3WAREHOUSE RECEIPT
Warehouse Receipts are documents issued by warehouses to depositors against the
commodities deposited in the warehouses, for which the warehouse is the bailee.
Warehouse Receipts may be either non-negotiable or negotiable. These documents are
transferred by endorsement and delivery. Either the original depositor or the holder in
due course (transferee) can claim the commodities from the warehouse.

News related to warehouse receipt

Benefits of Warehouse Receipts

39
 Warehouses and storage industry.

• Warehouse Receipts provide farmers with an instrument that allows them to

extend the sales period of modestly perishable products well beyond the
harvesting season. That way, the farmer does not need to sell the product
immediately to ease cash constraints

• The availability of secure Warehouse Receipts may also allow owners of

inventories to borrow abroad in currencies for which real interest rates are lower,
particularly if loans are made against inventories of an export commodity, thereby
hedging against the foreign exchange risk of foreign borrowing.
• Correctly structured Warehouse Receipts provide secure collateral for banks by
assuring holders of the existence and condition of agricultural inventories "sight
unseen." Warehouse Receipts can be used by farmers to finance their production,
and by processors to finance their inventories.
• Warehouse Receipts contribute to the creation of cash and forward markets and
thus enhance competition. They can form the basis for trading commodities, since
they provide all the essential information needed to complete a transaction
between a seller and a buyer.
• A Warehouse Receipt system provides a way to reduce the need of government
agencies in procurement of agricultural commodities.
• Warehouse Receipts can be combined with price-hedging instruments. This
combination provides lenders with secure collateral, in the form of Warehouse
Receipts, and puts a minimum value on it, through the hedging operation.

4.4.4 Strategic Analysis of Growth Opportunities in Indian

Warehousing
The study provides current market size, market segmentation, forecasts, industry
challenges and the key market drivers and restraints for the warehousing market in India.
It also analyses the key market participants and their competition in terms of their
capacities and market shares. It also gives a snapshot of warehousing market
segmentation by agricultural and industry sectors as well as key manufacturing industry
segments.Research Overview This Frost & Sullivan research service titled Strategic
Analysis of Growth Opportunities in Indian Warehousing Market provides current

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 Warehouses and storage industry.

market size, forecasts, warehousing spend of all major manufacturing industries and
agricultural sector, share of warehousing in total logistics spend for each of the major
industry and agricultural sector, as well as the key market drivers and restraints. In this
research, Frost & Sullivan's expert analysts thoroughly examine the following:
agricultural-sector warehousing market and industry-sector warehousing market in India.
Market Overview Impressive Growth of the Manufacturing Sector and Organized Retail
Sector in India Gives a Leg up to the Domestic Warehousing Market
The development of organized retail in India and the rising fortunes of the manufacturing
sector following India’s emergence as a low-cost outsourcing hub have buoyed its
warehousing market. With both domestic retail chains and international retailers
experiencing a boom, there is a greater demand for advanced and comprehensive
warehousing services. To cash in on the substantial opportunities, the private sector of
the warehousing market must shape up and reorganize itself. Currently, it is in a highly
fragmented state and comprises numerous competitors ranging from small truckers to
non-registered business entities, which only offer some space for storage of goods. In
many cases, manufacturers have their own chains of storage facilities owned/controlled
by their stockists/distribution agencies, since the limited numbers of professional
warehousing providers across the country are not enough to meet their extensive
distribution needs. According to an industry report by the Associated Chambers of
Commerce and Industry in India (Assocham), India is short of 10 million tonnes of cold
storage capacity, resulting in the wastage of over 30 percent of agricultural produce every
year Such disarray is compounded by the lack of Government regulations and policies
regarding licensing, performance, and accountability. Unorganized participants,
including small-time trucking companies, have been taking advantage of this situation by
cannibalizing business from professional warehousing providers. “A much needed set of
regulations in the form of the Warehousing Regulation & Development Act (WRDA) of
2007 and Goods and Services Tax (GST) are expected to improve the prospects of
professional warehousing service providers in the country,” says the analyst of this
research. While the WRDA will eliminate non-registered and pseudo warehousing
companies, the GST will standardize rates across the nation, allowing many corporations
to discontinue the practice of having their own warehouses in different states, and

41
 Warehouses and storage industry.

employ logistics companies to manage distribution and supply chains. Policies promoting
Free Trade Warehousing Zones (FTWZs) under the Special Economic Zone (SEZ) Act
of 2005 are also likely to encourage the addition of a significant level of modern
warehousing capacity in the country.

Warehousing infrastructure developments will also receive a thrust from the

improvements in transport modes. “Major projects, such as dedicated freight corridors of
railways and private sea ports and airports are being undertaken to increase cargo
handling capacities in the country,” notes the analyst. “The resulting growth of cargo
transportation is expected to augment the capacity as well as create a demand for storage
and warehousing services suitable for each of the transport mode.” Meanwhile, top-of-
the-line property developers that have identified significant opportunities in warehousing
in India are planning to build warehouses, especially since the traditional realty market is
slowing down. This interest by realtors is expected to markedly enhance the availability
of warehousing services and capacity in the country.

CHAPTER: 5

42
 Warehouses and storage industry.

CONCLUSION

43
 Warehouses and storage industry.

5.1 Conclusion

This evaluation has demonstrated that the spent lime can be reprocessed to meet stringent
industry product quality specifications. Economically, filler markets also represent an
outstanding opportunity, given that calcium carbonate is currently being purchased for
upwards
of $200 per ton for use in making various PVC pipe products. The primary marketing
focus should therefore be to demonstrate that a high-grade recycled calcium carbonate
product(s) can
be produced for specific filler markets in quantities that are sufficient to match industry
demand.
Other markets also exist for both the residual calcium hydroxide and kraft paper bags,
both of which contribute to the project revenue stream. Several potential end use
industries are located in close proximity to the controlled atmosphere warehouses that
generate the spent calcium carbonate. A centralized lime recycling facility could easily
be located in the same geographic area, thereby minimizing the cost of transport of the
finished product More distant markets also exist and the processed lime could be
transported by road or rail, although this is less favorable because of the cost of
transportation. This project further demonstrated through actual manufacturer’s testing
that processing equipment is readily available to reduce the particle size of the lime to
meet the industry specification of 2 to 3 microns (average size range), and 8 microns
(maximum). As part of the recycling process, residual calcium hydroxide would likely be
separated as a separate product, and the remaining minor quantities of calcium hydroxide
would be converted to calcium carbonate with carbon dioxide. The economic analysis
conducted for this project relied upon conservative assumptions, and the result of this
evaluation was that calcium carbonate recycling is economically feasible given the
projected costs and anticipated revenues. In addition to the exciting economic
opportunities, this project also represents an opportunity to convert a problem “waste
material” into a range of products that are 100 percent recycled, and that reduce the
demand placed on natural limestone resources at the quarry.

44
 Warehouses and storage industry.

CHAPTER: 6

BIBLIOGRAPHY
AND
REFERENCES

45
 Warehouses and storage industry.

6.1 BIBLIOGRAPHY

Books:
1. James A. Tompkins--
-- Hand Book of Warehouse Management
2. JP Saxena -- Warehouse Management And Inventory Control
Journals:
1. Business World
2. The Franchising World.

Internet:
1. Agrimarknet.nic.in
2. Google.com
3. scribd.com
4. MSN.com

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 Warehouses and storage industry.

6.2 REFERENCES

 Chadha, R., 1999. Trade and Balance of Payments, National Council of Applied
Economic Research(Mimeographer).

 Desai, M., 1999. “What should be India’s economic priorities in a globalized

world?”, Indian Council for Research on International Economic Relations, New
Delhi.

 Gulati, A., and A.N. Sharma, 1995. “Subsidy syndrome in Indian agriculture”,
Economic and Political Weekly, 30 September 1995.

 Kalirajan, K.P., G. Mythili and U. Sankar, eds. 2001. Accelerating Growth

Through Globalization of Indian Agriculture, Macmilan, India.

 Shand, R., 1997. ‘The agriculture-manufacturing nexus and sequencing in India’s

reform process’,

 Discussion Paper No. 4, Australia-South Asia Research Centre, Australian National

University.
 Kruger, A.O., M. Schiff and A. Valdes, eds. 1991. The Political Economy of
Agricultural Pricing Policy, vols. 1 and 2 (Baltimore, John Hopkins University
Press).

 Mahadevan, R. and Kalirajan K.P., 1999. “On measuring total factor productivity
growth in Singapore’smanufacturing industries”, Applied Economics Letters, vol. 6,
pp. 295-298. OECD, 1998. Agricultural Policies in OECD Countries (Paris).

 Satyasai, K.J.S. and K.U. Viswanathan, 1999. “Dynamics of agriculture-industry

linkages”, Indian Journal of Agricultural Economics, vol. 54, No. 3, pp. 394- 401.

 Schumacher, Jr., A., 2000. “International agricultural trade at a crossroads”,

Economic Perspectives, An Electronic Journal of the US Department of State,
March 2000.

 Singh, M., 1995. Inaugural address delivered at the 54th Annual Conference,
Indian Journal of Agricultural Economics, vol. 50, No. 1: 1-6.

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 Warehouses and storage industry.

 Sivakumar, S.D., R. Balasubramaniam and N. Srinivasan, 1999. “Growth linkage

effects ofagro-industrialization”, Indian Journal of Agricultural Economics, vol. 54,
No. 3,pp. 412- 419.

1 Appendices

Exhibit 1.1 :Present Indian Scenario

Indian warehousing sector is expected to grow from US$ 20 billion in 2007-08 to about
US$ 55 billion by 2010-11, growing at a rate of 35-40 per cent every year. (A report by
real estate consultancy firm, Cushman and Wakefield.). The Country is pegged around 30
million MT in 2006, out of which the total storage capacity contributed by State and
Central Warehouses is 10.04 million MT and 19.7 million MT respectively. Three public
sector agencies are involved in building large-scale storage and warehousing capacities in
the country. These are the Food Corporation of India (FCI), Central Warehousing
Corporation (CWC) and 17 State Warehousing Corporations (SWCs). While the FCI
uses its warehouses mainly for storing food grains, the storage capacities with CWC and
SWCs are used for the storage of food grains as well as other items. The FCI has the
largest agricultural warehousing systems with over 24.33 million tonnes of storage
capacity in over 1451 godowns located all over India. This includes owned as well as
hired warehouses. The CWC was founded in 1957 to provide logistics support to the
agricultural sector. Currently, it operates around 514 warehouses across the country with
a storage capacity of 10.27 million tonnes. Other than storage and handling, CWC also
offers services such as disinfestations, pest control, fumigation, clearing and forwarding,
handling and transportation, procurement and distribution. State Warehousing
Corporations exist in 17 States to provide storage facilities and pest control services for
various agricultural commodities belonging to farmers of that State. These warehouses
work under different Warehousing Acts enacted by the respective State Governments.

48
Warehouses and storage industry.

49
Warehouses and storage industry.

50