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To tap the growing demand for warehousing from e-commerce firms, Union Food Secretary Sudhanshu Pandey on Friday exhorted the Food Corporation of India and the Central Warehousing Corporation (CWC) to monetise their assets in the urban areas.
Inaugurating the CWC’s 3.5 lakh sq ft Grade A Warehouse at the IT SEZ near Bengaluru International Airport on Friday, Pandey said e-commerce companies need warehouses in urban areas.
“I have already been encouraging both FCI and CWC to part away their facilities in urban areas as part of the asset monetisation programme for companies. We can operate for grain supplies outside the cities, which actually saves on land, saves time and gets a better return on investment on both sides,” Pandey said. FCI and CWC own warehousing capacities in many locations across the country.
CWC’s share
“From a situation of warehouse scarcity, we have come a long way to create capacity and can offer it to the private sector, which is willing to use it, not only for foodgrains but for other products as well,” Pandey said. CWC has a 50 per cent share of foodgrain storage, and within that 50 per cent, FCI has 37 per cent, while the rest is used by the private sector for their grain mangement.
“In future, we should be forward-looking. Government corporations still play an important role. For this reason, in the list of various disinvestment plans, both FCI and CWC are not part of the disinvestment. In fact, they are part of the future journey of the logistics sector with asset monetisation, where the private sector and the government sector can build relationships and put the country on the fast track on the logistics side,” Pandey said.
New warehouse
CWC has set up the 3.5 lakh sq ft Grade A warehouse on an area of 14 acres, which will be handed over to the Ethics Group of Companies for a 10-year period. The Ethics Group, which manages the entire supply chain and warehousing for the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP), plans to use the CWC facility to cater to the requirements in Karnataka and other neighbouring States. Bipin Kevadiya, CMD, Ethics Group, said the company operates similar warehousing facilities for the supply chain management of medicines under the PMBJP.
Arun Kumar Shrivastava, MD, CWC, said with land acquisition and change of land use becoming a problem in urban areas, CWC is willing to partner with private players to develop warehousing infrastructure across the country. CWC is also developing a 17.5 lakh tonne capacity of warehouses in around 100 plus locations across India to serve the needs of warehousing requirements, he said.
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