India’s Logistics Sector Set for Transformation
Union Minister Shri Pralhad Joshi has highlighted the critical role of the warehousing and logistics sector in driving India’s economic growth. Speaking at the 69th Foundation Day of the Central Warehousing Corporation (CWC) in New Delhi, he emphasized the government’s commitment to reducing logistics costs through initiatives like the National Logistics Policy and PM Gati Shakti. The Minister praised CWC’s efforts in enhancing operational efficiency and transparency through digital integration.
Government Initiatives to Boost Logistics Efficiency
During his address, Shri Joshi underscored the government’s strategic initiatives aimed at cutting logistics costs, which currently stand at 13-14%. He stated, “With the launch of the National Logistics Policy (NLP) and the PM Gati Shakti Programme, we aim to bring down logistics costs to global standards of around 8%.” The CWC, as a leading warehousing organization, is expected to play a pivotal role in achieving these targets by developing modern infrastructure and enhancing operational efficiencies.
The Minister also highlighted CWC’s significant contributions to various government programs, including the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA). These initiatives ensure the efficient warehousing, handling, and transportation of essential commodities such as food grains, pulses, cotton, and groundnuts, thereby reinforcing the importance of logistics in national food security.
CWC’s Evolution and Future Prospects
Shri Joshi noted CWC’s transformation from a traditional warehousing entity to a modern logistics service provider. He stated, “CWC has evolved into a symbol of efficiency, innovation, and reliability, boasting an extensive network of over 700 warehouses with an operational storage capacity of 148.29 lakh metric tonnes.” This evolution reflects the growing demand for efficient logistics solutions in the face of rapid e-commerce expansion.
Looking ahead, the Minister projected that India’s warehousing market is expected to grow at a remarkable 15% CAGR, reaching $35 billion by 2027. He acknowledged CWC’s significant contributions to infrastructure development, including the addition of 21.65 lakh square feet of storage capacity in FY 2023-24, supported by a record capital expenditure of ₹613 crore. Furthermore, CWC’s e-commerce capacity has expanded twelvefold since 2021, reaching approximately 80 lakh square feet by 2025.
Commitment to Food Security and Farmer Welfare
At the event, Union Ministers of State for Consumer Affairs, Food and Public Distribution, Shri B.L. Verma and Smt. Nimuben Jayantibhai Bambhaniya, reiterated CWC’s commitment to ensuring the nation’s food security. They highlighted the government’s decision to raise the Minimum Support Price (MSP) for all mandated Rabi crops for the 2025-26 marketing season, emphasizing the administration’s dedication to farmer welfare.
The event featured a presentation by Shri Santosh Sinha, Managing Director of CWC, who discussed the modernization of conventional warehouses in Tier-I and Tier-II cities and the development of cold storage facilities under a Public-Private Partnership (PPP) model. CWC has also achieved significant milestones, including the storage of 70 lakh cotton bales and 1.90 crore bags of groundnut in the current season. The Corporation’s consistent performance has earned it the prestigious ‘Navratna Status’ in April 2024, marking a significant achievement in its operational journey.
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