AGRICULTURAL CREDIT AND MARKETING

Project Report on:

Warehousing Facilities for agricultural produce

By:
 Amit Roy (2006)  Amit Kumar (2007)  Ankit Jaiswal (2008)  Anuradha Pawar (2009)  Archit Bansal (2010)  Yashi Tandon (2043)
1|P a ge

Contents
1.) 2.) 3.) 4.) 5.) 6.) 7.) 8.) 9.) 10.) 11.) 12.) Introduction Meaning Of Warehousing Kinds Of Warehouses Need For Warehousing Functions Of Warehousing Importance Of Warehousing Warehousing In India Warehousing - A Regional Comparison Tenth Five Year Plan Strategy Limitations Of Warehousing Conclusion References

2|P a ge

WAREHOUSING

INTRODUCTION:-

Warehousing is one of the functions of marketing. The place where the goods are stored is called as warehouse. The term ware means products. Storage or godown is generally located near the factory to keep the raw material and finished products. Storage is only a holding place. Whereas, the warehouse is located near the market to perform the other marketing functions such as grading, standardization, blending, mixing, packing etc. Therefore, we may say that a warehouse holds goods as a distribution center. The development of science and technology has improved the ways and means of storage.

MEANING OF WAREHOUSING:-

It is an arrangement by which goods are stored when they are not immediately needed and are kept in such a manner to protect from deterioration. It can be simply called as a place where the storage facilities are provided. The object of warehousing is preservation and protection of goods from deterioration in quantity and quality. It creates time utility.

3|P a ge

KINDS OF WAREHOUSES:On the basis of ownership warehouses can be classified into the following types:1. Private 2. Public 3. Co-operative

Other warehouses can be classified into the following types:1. Bonded 2. General merchandise 3. Special commodity 4. Cold storage 5. Climate controlled warehouses 6. Distribution centers 7. Automated warehouses

1. Private Warehouse: These are owned by private persons to store their own products. Large scale manufactures, wholesalers, and bid stockiest have their own warehouses at different distributing centers in order to maintain the regular supply of goods with dealers and others. All expenses and risk involved in storing the goods are borne by them. Only the large and steady sales volume holders find it economical in maintaining such warehouses.

2. Public Warehouse: These are started to provide storage services and facilities to the retailers, wholesalers, and stockiest and even to the general public. These warehouses impose rental charges for the space used and service charges for providing services such as inspection of goods, packing them, shipping and invoicing them. These are constructed at strategic places where rail and road transportations are available.

4|P a ge

3. Co-operative warehouse: These are organized to provide warehousing facilities to members and others. The interested persons who would become the members of such societies form these. Its efficiency depends upon the full utilization of space, self-less management, loyalty of all the members and resources.

4. Bonded warehouse: These types of warehouses are licensed by the government and are permitted to accept the goods under bond. The imported goods awaiting clearance are kept in the warehouse till the duty is paid. The goods will be delivered only after payment of the duty. These types of warehouses are situated near the ports. If the government owns the bonded warehouses then customs authorities will have direct control over the warehouses. The owners of the goods are allowed to inspect, bottle, brand and blend the goods.

5. General merchandise warehouse: These are the most common type of warehouses which provide storage facility for any product which does not require special facility. They are simply resting places and can be used by the manufactures, wholesalers and retailers.

6. Special commodity warehouse: These warehouses are specially constructed for the storage of a particular commodity such as tobacco, cotton, wool etc,

7. Cold storages: Some of the products are to be stored in cold storages, which uses the technique of refrigeration to extend the period of marketing. For example: Perishables such as fruits, vegetables, fish, and meat and eggs etc., are stored for future consumption.

5|P a ge

8. Automated warehouses: With advances in computer and robotics technology many warehouses now have automated capabilities. The level of automation ranges from a small conveyor belt transporting products in a small area all the way up to a fully automated facility where only a few people are needed to handle storage activity for thousands of pounds/kilograms of product. In fact, many warehouses use machines to handle nearly all physical distribution activities such as moving product-filled pallets (i.e., platforms that hold large amounts of product) around buildings that may be several stories tall and the length of two or more football fields. 9. Climate-Controlled Warehouse: Warehouses handle storage of many types of products including those that need special handling conditions such as freezers for storing frozen products, humidity-controlled environments for delicate products, such as produce or flowers, and dirt-free facilities for handling highly sensitive computer products. 10. Distribution Center: There are some warehouses where product storage is considered a very temporary activity. These warehouses serve as points in the distribution system at which products are received from many suppliers and quickly shipped out to many customers. In some cases, such as with distribution centers handling perishable food (e.g., produce), most of the product enters in the early morning and is distributed by the end of the day.

6|P a ge

NEED FOR WAREHOUSING:-

Warehousing removes the hindrance of time by storing or warehousing without which much of the goods produced will be useless and there may not be any incentives for production. The following factor shows the need for warehousing:-

1. Mass Production:- Production is based on the anticipated demand for goods. Mass production of goods takes place by establishing big factories and modern machines. The markets for such goods are spread all over the country Therefore warehouses have to be built at different places to store these products to provide prompt supplies at various centers when demanded.

2. Nature of commodities: Some commodities are perishable in nature and therefore it should be consumed in time to avoid deterioration. Storing them in cold storages can extend the consumption period. For example, fruits, vegetables, eggs, butter and the like are stored in storages as they are perishables.

3. Seasonal Production but Regular Consumption: Many commodities, especially the farm products such as wheat, sugar pulses etc., are produced only in seasons. However, consumption is evenly spread throughout the year. If storage is not provided, these commodities become waste and get deteriorated and during the off-season periods, it would become scarce. Therefore, storage at suitable warehouses is needed.

4. Regular Production but Seasonal Consumption: In anticipation of the demand in seasons certain goods are produced regularly. For example, ready-made garments, blankets, electric fans etc., therefore these goods would require storage so that it can be released in large quantities to meet the heavy demand in seasons.

5. Proximity to production centers: Storage at different centers are required to supply the goods in time and without interruption. For this purpose goods are regularly fed to the warehouses situated at different market areas and

7|P a ge

thereby making them available easily to wholesalers, retailers and other dealers. In turn they will be sold to the ultimate consumers.

6. Storage of Raw materials for mass production: Some raw materials are to be made readily available to facilitate continuous mass production. Therefore, such types of materials are kept in warehouses to be supplied to the production center as and when required. For example raw cotton is purchased from the markets and warehoused for supplying the same to the production place.

7. Storage to keep buffer stocks: To avoid interruption in production and to avoid the danger of non-availability of commodities, certain minimum stock is to be stored. Therefore, storage is essential.

8. Storage for speculative purposes: Certain commodities are kept in the godown for some time to get better prices for them. These are stored to get profit out of fluctuations in prices, till such time the goods are to be kept in the godown.

8|P a ge

FUNCTIONS OF WAREHOUSING:-

It renders invaluable services to the community by performing the following functions:

1. Protection of Goods: Warehousing saves the goods from deterioration by storing in suitable racks, cans, drums, bags and by keeping them away from sun, dust and rain. Thus the warehousing safeguards the goods from various agents of harms both natural and human. Making safety and security arrangements make pilferage and theft difficult. Fire protection devices are also kept ready to protect the goods from fire.

2. Price stabilization: Warehousing ensures the steady supply of goods as and when demanded. Thus it helps in stabilization of prices. In the absence of warehousing, smooth flow of goods are difficult and are also unremunerative both to producers and dealers due to heavy price fluctuations. Thus warehousing provides a cushion to absorb the market fluctuations and supplies the goods at more or less uniform prices throughout the year.

3. Storage of goods: There is a gap between the period of production and the period of consumption and also between the quantity produced and quantity consumed. The surplus goods are stored properly for the purpose of supplying them at a place and time at which it is needed.

4. Equalization of demand and Supply: The commodities not in demand in the market are withdrawn from the market and are stored and afterwards they are pumped into the market when they are required. Consumers can get the commodities regularly even during the off-season periods. To avoid famines and scarcity of goods, the government also warehouses the food grains through effective warehousing programmes.

9|P a ge

5. Facilitating Business Finance: Based on the goods deposited in a warehouse, the depositor can get finance by showing the receipt issued by the warehouse keeper from banks and other financial institutions. 6. Preparation for sale: Now a days modern warehouses undertake the functions of sorting, packing and labeling for the purpose of making the goods suitable for marketing. Hence, the warehousing is needed for making the goods suitable for marketing which inturn results in the sale of products. 7. Delivery to the buyer: The goods sold need not be brought to place of buyer by taking physical delivery .The depositor can make the transfer of goods by simply issuing delivery orders to the warehouse-keeper by mentioning the name of the buyer. 8. Widening the marketing area: A manufacturer can sell the goods to different marketing areas by establishing branch warehouses or taking the services of rented warehouses at the required places. 9. Concentration on production: Producers are relieved from the problem of storing the goods. They need not have separate storage place of their own. The warehouse keepers give all these special services. Therefore the producers can concentrate on production. 10. Risk bearing: Once the goods have been kept in the warehouse it is the responsibility of the owner of the owner to keep the goods in good condition. thus the risk on the farmer is minimized and he is sure to get a minimum amount of profit.

11. Grading and Branding: especially in the agricultural products a lot of varities are available, hence a warehouse provides the ideal place as all the produce can be soughted and priced accordingly and then sent to different markets according to their demand, thus increasing the efficiency of the market. Grading and branding also make things a lot more easier for the consumers as every time he does not have to sought out the things himself, thus saving times.

10 | P a g e

IMPORTANCE OF WAREHOUSING:-

1. Warehousing safeguards the stock of the merchant, who has very limited trading place.

2. Warehouses reduce distribution cost by unloading the goods in bulk and facilitates the trader to move the goods in small lots to his shop.

3. Warehouses near the selling area serves the customer at a lower cost.

4. Some warehouses provide indirect financial assistances. For e.g. bonded warehouses provide facilities to release the goods proportionately after getting the dues in installments.

5. Warehouses stabilize the prices of the goods by effecting the movement of the goods.

6. It helps in determining the channel of distribution. For e.g. Manufacturer will prefer to have a wholesaler or retailer who has his own warehouse .

7. It assists in maintaining the continuous sales and avoids the possibilities of out of stock position.

8. Warehouses help in imports and exports of goods as it stores it in large amount and also has many facilities like convenient location, good transportation facility and all the things mentioned above. 9. Food security: it is only because of good storing facility that India has been able to reach the stage of food sufficiency, it no longer has to import grains from other countries. Also the farmers no longer have to sell their produce at throw away prices.

11 | P a g e

WAREHOUSING IN INDIA:India is an agrarian country but the importance of warehousing was not felt till 1950. The Pause Committee has estimated that post harvest losses are more than 10% of the food grains produced due to poor warehousing facilities. On the recommendation of the All India Rural Credit Survey Committee, The Agricultural Produce (Development and Warehousing) Corporations Act enacted in 1956 authorized the government to set up National Co-operative Development and Warehousing Board to develop agricultural Co-operatives and warehousing. The Central warehousing Corporation was established in 1957.This Act also permitted the establishment of State Warehousing Corporations.

The three main agencies in the public sector engaged in providing large scale warehousing facilities are:

1. Food Corporation of India (FCI):

It provides storage facilities for food grains. FCI also hires storage capacity from other sources such as CWC, SWC, State Governments and private parities. The available storage capacity of Food Corporation of India in the seventh plan is 20.33 million tonnes.

FCI developed an indigenous method for storing the agriculture- produce called Cover and Plinth (CAP). CAP storage is a term given to storage of foodgrains in the open with adequate precautions such as rat and damp proof plinths, use of Dunn age and covering of stacks with specially fabricated polythene covers etc. In order to reduce storage and transit losses of food grains and to bring additional resources through Private Sectors participations. Govt. of India had announced a National Policy on Handling Storage and Transportation of Food grains in June, 2004 for Bulk and conventional godowns. In the Ist phase,after a series of deliberations, it was approved that total capacity of lakhs MT be created at the identified based depots and feild depots through private sector participation on Build-Own & Operate (BOO) Basis.

12 | P a g e

. in Million Tonnes 1st 1st 1st 1st 1st 1st 1st Capacity Apr. Apr. Apr. Apr. Apr. Apr. May. 2003 2004 2005 2006 2007 2008 2009 Covered Owned Hired Total 12.82 13.77 12.82 12.91 10.85 10.46 12.93 12.94 12.95 12.97 9.90 9.34 8.71 10.76

26.59 23.67 23.37 22.83 22.28 21.66 23.73 CAP ( Cover and Plinth)

Owned Hired Total Grand Total

2.26 2.88

2.21 1.36

2.25 0.41

2.21 0.51

2.29 0.63

2.20 0.03

2.18 0.62

5.14 3.57 2.66 2.72 2.92 2.23 2.80 31.73 27.24 26.03 25.55 25.20 23.89 26.53

2. Central warehousing Corporation (CWC):

It was started in 1957. The available storage capacity of CWC in the seventh plan is 6.77 million tonnes. The following are the objects of CWC: 1. To provide an agency for scientific storage of varieties of agricultural produce, seeds, manures fertilizers, agricultural implements and other notified commodities. 2. To issue a negotiable warehouse receipt for procuring credit to the owner of stocks. 3. To issue warehouse receipt after checking the quantity and quality. 4. To preserve the produce deposited with care and protect against insects and various pests and deterioration due to moisture and dampness.
13 | P a g e

5. To act as the agents of the government towards the purchase, sale, storage and distribution of specified commodities and transport to and from the warehouse. 6. To construct warehouses at suitable places to store different commodities on scientific lines.

3. State Warehousing Corporation:

Every state government is given power to establish its own Warehousing Corporation after getting approval from the Central Warehousing Corporation.50%of the capital is contributed by the CWC and the State Government contributes the balance 50%..The available storage capacity of SWC in the seventh plan is 9.70 million tonnes.

Functions of SWC: The following are the functions of SWC: 1. To start and run the warehouses at places not reserved for the central warehouses 2. To regulate the markets at its specified centers. 3. To act as an agent of the Government and CWC. 4. To subscribe the share capital of co-operative warehousing societies.

14 | P a g e

WAREHOUSING - A REGIONAL COMPARISON:-

The concept of Modern Warehousing was evolved more than 45 years ago on the recommendation of the Rural Credit Survey Committee set up by the Reserve Bank of India in the year 1951 with the twin objective of providing scientific storage for preservation of Agricultural produce ad expansion of credit facility through Commercial banks in the rural areas to prevent the farmers from distress sale and also to provide them with inputs in the shape of seeds, fertilizers and agricultural implements. On the recommendations of the Rural Credit Survey Committee, the Agriculture Produce Development and Warehousing Act 1956 came into existence.

The United Nations Development Projects Action March April 1975 stated that in India 10 millions tones of grains are lost every year through spoilage by pest and moisture and these losses could be make up for the entire annual world food storage. On the other hand the adverse effects of frequent fluctuations in the output of food grains following the vagaries of rain fall in the country can be minimized to some extent through proper storage and distribution. The Warehousing Corporation is a Corporate body, which was established on the basis of the Agriculture Produce (Development and Warehousing) Corporation Act 1956, No 28 of 1956. This Act was later repealed and a new Warehousing Corporation Act was enacted in1962.

We have learnt the importance of warehousing in the modern agriculture sector. India being an agriculture economy has to really take care of its warehousing facilities. India is still not a developed country and hence we still face an imbalance and all the states dont have the same facilities due to their underdevelopment. Here we bring about a study of functioning and state of different warehousing corporation in India. Every state in India has its own warehousing corporation who takes care of the warehousing facilities but all of them are not of the same quality. They all differ to each other. The graph below gives a clear picture of the difference between the different states corporation:-

15 | P a g e

The graph above shows different warehousing corporations in india and their working. In the graph its clearly seen that all the states corporations are not of the same. There is a huge difference between their functioning and quality. In the graph its Punjab and Assam who tops the chart and states like Bihar and Orissa lacks behind.

Now lets have a look at the different state warehousing corporation in our country and their functioning and reasons for their failure or success. I have taken 5 states Bihar, Orissa, Karnataka, Kerala, and Tamil Nadu. Of this Bihar is an example of worst hit case and Karnataka is the example of case with the best results.

16 | P a g e

BIHAR:The corporation was set up for the purpose of storage of food grains and other notified agricultural commodities by constructing scientific Godown throughout the state to help farmers by way of providing them storage facilities and agriculture inputs at their doorsteps. The Bihar State Warehousing Corporation acts as an agent of the Government for the purpose of storage of agriculture produce, inputs, seeds, manures, fertilizers, agriculture implements and other commodities.

THE MISSION

- To promote Scientific Storage facilities for Food grains, Pulses, Oilseeds, Spices, Sugar, Fertilizers, Manures and other notified commodities and providing safe Warehousing where by losses due to spoilage can be minimized.

- To prevent distress sale through introduction of Warehouse receipt as a negotiable Instrument.

BENEFITS OF WAREHOUSING CORPORATION

 Complete security of stocks, which is ensured by scientific prevention methods and Techniques.  Insurance coverage for goods stored in warehouse  Facility of bank advances against the security of warehouse deposits.  Part delivery of goods, which enables the depositors to withdraw the goods according of his needs and on part repayment of the bank loan, if taken against t he security of the goods.  A rebate of 10 % in the storage charges for stocks belonging to the Bonfide Agriculturists.

17 | P a g e

The following chart depicts the status of business, capacity utilization and profitability during the past five years

: Projected profit growth

18 | P a g e

Bihar state warehousing corporation is in worst of its state. The projected growth shows a very bright future of the corporation but the reality is something different. Bihar warehousing corporation is a complete failure. There are various reasons for its failure. The most important being the huge amount of corruption in the state. The funds allotted generally dont reach to the purpose for which it was allotted. This phenomenon is very common and people are no bothered to inspect it. The authorities take an advantage of it and what happen to Bihar state warehousing corporation is in front of us. Government too plated an important role for its failure. Their policies brought nothing but more trouble for the corporation.

KERALA:Kerala State Warehousing Corporation came into existence on 20th February 1959 according to Government Notification No. Ag.P2 - 205057 AD dated.30.01.59. It functions under the Warehousing Corporations Act 1962 (Central Act 58/1962). The Warehousing Corporations Act 1962 was passed repealing the Agricultural Produce Development and Warehousing Corporations Act 1956. KSWC is a statutory Corporation having 50% Share Capital by Central Warehousing Corporation and 50% share capital by the Govt. of Kerala. It has its Corporate Office at Ernakulum with 3 Zonal Offices, 9 Regional Offices and 60 Warehouses scattered all over the state. All types of agricultural commodities and other commodities notified by the Government from time to time are accepted for storage in a Warehouse. The idea behind the whole warehousing scheme is to give scientific storage to the agricultural produce and also to arrange easy credit and holding power to the agriculturists to enable them to get a better price for their produces. A Warehouse Receipt incorporating the quantity, quality, market value and particulars of insurance against fire, theft and burglary will be issued to the depositor. The Warehouse Receipt is negotiable in nature and can be pledged in any bank. The Kerala state warehousing corporation has done fairly well. Its neither too developed nor a loss making or a sick one.

19 | P a g e

KARNATAKA:Karnataka state warehousing corporation has done well in the modern times. Its one of the best functioning warehouses of this country. Its policy has really made this warehousing corporation reach the place where they are today. Some of the important policies or strategies arey y

To acquire and build godowns and Warehouses within the state of Karnataka. To run Warehouses in the state for the storage of Agricultural Produce, Seeds, Manures, Fertilizers, Agriculture implements and other notified commodities.

y y

Arrange facilities for the Transport of Agricultural Produce, seeds Manures, Fertilizers etc. Arrange for Disinfestations service to the farmers, Government offices, Public libraries, Hostels, Theaters, Public buildings, Private establishments, Apartments etc., Rodent control, Insect control, Cockroach control are a few specialized services undertaken.

Beside these the warehousing corporation has also received a lot of helps and funds for development from the state as well as the central government. Karnataka being a develop state also got all the things which they required in order to run their warehousing corporation properly.

So we had a look at the different state warehousing in India. In India the condition of the different warehouses are not the same. There are few states like Assam, Andhra Pradesh etc who are at the best of their position and there are few others like Bihar who are at the least and seriously require some help so that even they can come up and stand with other developed warehousing corporations. Warehouses as seen by us is very important for development of agriculture in India and India being an agrarian economy needs a good warehousing facility. So the government must try to develop all the warehouses on the same lines and should try to reduce this imbalance so that the country as a whole can progress and develop.

20 | P a g e

PUNJAB:Punjab State Warehousing Corporation (PSWC) is the biggest State Warehousing Corporation of India with a storage capacity of 62.50 lakh MTs, & a network of 117 warehouses, 251 Procurement Centres, and 5 Container Freight Stations (CFSs) / Inland Container Depots (ICDs).

It not only accounts for more than 1/3rd of the total combined capacity available with all the State Warehousing Corporations in the country put together, but is also the 2nd largest CFS operator in the Northern India Modern management practices, stringent financial control & strict administrative discipline has made PSWC, the fastest growing State Public Sector Undertaking of India. Its highly motivated work force of about 1756 employees have proved their worth as its operating profits of Rs. 21.76 lakhs in 1992-93 zoomed to Rs. 3170.35 lakhs during the year 2004-05.

As one of the procuring agencies of the State Govt. since 1993-94, PSWC has not only been able to achieve targets but also has been maintaining its impeccable record of rendering outstanding services to the farmers by arranging prompt payments for their produce.

PSWC offers total solutions to agriculturists for their warehousing needs: Procurement, Storage/Warehousing, and Containerization & Export of food grains.

21 | P a g e

TAMIL NADU:-

A premier warehousing agency in the State of Tamilnadu was established in 1957. It provides price support to the agricultural sector. It is one of the biggest public warehouses operating in the state offering logistic services to a diverse group of clients.

Tamilnadu Warehousing Corporation (TNWC) operates 65 warehouses across the state with a storage capacity of 6.3 lakh tonnes providing warehousing services for a wide range of products running from agricultural products to sophisticated industrial products.

Warehousing activities of Tamil Nadu Warehousing Corporation include food grain warehouse and custom bonded- warehouse. 3. Apart from storage and handling, Tamil Nadu Warehousing Corporation also offers its services in the area of handling, transportation, disinfecting services, fumigation services and other ancillary activities.

Tamil Nadu Warehousing Corporation also offers training on scientific storage of stocks to different agencies.

Scientific storage and handling services are offered for more than 200 commodities that include agricultural produce, industrial raw materials, finished goods and a variety of hygroscopic items.

Scientific storage facilities are available for more than 200 Commodities that include hygroscopic items through 65 warehouses in Tamilnadu.

At present TNWC is functioning in Tamilnadu with seven Regional headquarters at Kancheepuram, Cuddalore, Trichy, Salem, Dindigul, Mettupalayam and Tirunelveli.

22 | P a g e

TENTH FIVE YEAR PLAN STRATEGY:The Government of India has approved a National Policy on Handling, Storage and Transportation of Food grain. This policy broadly envisages:

(i) (ii) (iii)

reduction in storage and transit losses at the farm level; encouragement to farmers to adopt scientific storage methods; modernization of the system of handling, storage and transportation of the food grains procured by the FCI;

(iv)

Harnessing the efforts and resources of both the public and private sector (including foreign companies), to build and operate infrastructure for bulk handling, storage and transportation of food grains.

Fiscal incentives are available to the entrepreneurs in the form of tax concessions on profits, custom duty exemption for items not manufactured in India, etc. Horticulture crops are highly perishable and improper handling can lead to heavy losses. The potato crop takes up 88 per cent of the country's total cold storage capacity. Other fruits and vegetables account for 10.4 per cent, whereas fish and marine products account for 1 per cent of the total cold storage capacity. There are 3,886 cold storages with an installed capacity of 13.62 metric tonnes and about 150 units are in the process of construction. Thus, by the end of the Ninth Plan the total cold storage capacity was of the order of about 14.37 metric tonnes. There are very few multi-purpose cold storages.

23 | P a g e

LIMITATIONS OF WAREHOUSING:-

The warehousing in India is not effective because of the following reasons:

1. Warehouses located are at longer distance from production centre. This is the main problem of the warehouses in India. This disturbs the storage of food grain. In India there are some parts where production of food grains is done on a large scale but the warehouses are not exactly near by them to store the produce exactly after the produce. Overall due to this problem it also involve huge transportation cost of food grains from production center to the warehouses.

2. 90% of the farmers are illiterate and are not able to know the benefits of storage and institutional credit availability. In India there are many institutional and non institutional sources of finance are available but there are very few farmers only who take the advantage of these sources. Since in many parts of the country the farmers are uneducated/illiterate they even dont know about these things due to which they did not spend much on the storage of food grains properly. The other reason is that there is no one to aware them how to use the warehouses for proper storage or how to built a warehouse using credit available from the financial institutions.

3. The farmers marketable surplus is very small. Therefore they find that it is not worth to keep the produce in the warehouses located at longer distances.

4. There are no proper transportation facilities between the place of production and warehouse.

5. Warehousing corporations are not providing storage facilities, which are suitable for different commodities such as perishable and non- perishable commodities requiring different conditions.

6. More complicated formalities are to be fulfilled at the warehouses. The illiterate and innocent farmers are not able to cope up with these procedures.

7. The cost of warehousing is more than the benefits.

24 | P a g e

Conclusion

According to infrastructure Development Finance Company, India s economy has been growing at a rapid rate, but it doesn t have the proper infrastructure to support its pace. The same implies with the agricultural sector too. Though our agriculture produce is increasing post green revolution, but the storage facility is still not adequate. As per the researches every year 10% of the agricultural produce by weight is damaged due to the lack of proper warehousing facility. Hence the need of the hour is to increase the storage facilities and more pro-active approach in implementing government policies, so every area and every crop is covered properly.

25 | P a g e

REFERENCES

1. Government of India (2001) -Report of the Working Group on Strengthening of Agricultural Infrastructure, Warehousing, Rural Godowns, Markets etc. 2. Five Year Plan, Panning Commission, Govt. of India, New Delhi. 3. Government of India (2003) Report on Agmark Grading Statistics 2001-02, 4. Directorate of Warehousing & Inspection, Ministry of Agriculture 5. Wikipedia 6. www.agmarknet.org 7. www.fci.com 8. www.agricoop.in.org 9. Book reference-Globalization and Agricultural Marketing ,edited by Harish Nayyar and P. Ramaswamy

26 | P a g e