ROLE OF CENTRAL WAREHOUSING CORPORATION IN INDIA

A premier Warehousing Agency was established during 1957 in India, which provides logistical support to the agricultural sector. It is one of the biggest public warehouse operators in the country offering logistics services to a diverse group of clients. CWC is operating 476 warehouses across the country with a storage capacity of 10.18 million tonnes providing services for a wide range of products ranging from agricultural produce to sophisticated industrial products. Warehousing activities of CWC include food grain 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 clearing and forwarding, handling and transportation, procurement and distribution, disinfestations services, fumigation services and other ancillary activities. CWC also offers consultancy services/training for the construction of warehousing infrastructure to different agencies.

VARIOUS SERVICES OFFERED BY CWC :1. STORAGE :It items provides scientific storage and handling services for more than 400 commodities include Agricultural produce , industrial raw materials, finished goods, and variety of hygroscopic and perishable

Scientific Storage Facilities for more than 200 commodities including hygroscopic and perishable items through network of 473 warehouses in India with its 5,658 trained personnel. Import and Export Warehousing facilities at its 36 Container Freight Stations in ports and inland stations. Bonded Warehousing facilities . Disinfestation services. Handling, Transportation & Storage of ISO Containers

1. ICD/CFS SERVICES :Exports Receipt of export cargo In-House customs examination Export cargo aggregation and storage Preshipment Disinfestation of containers as well as of export cargo. Cargo stuffing under custom supervision Imports Movement of Import containers from the port De-stuffing of LCL and FCL containers Customs Examination Bonded Warehousing facilities

3.BONDED WAREHOUSE FACILITY :It operates 75 custom bonded warehouses with a total capacity of nearly 0.5 million mts .The concept of custom Bonded Warehousing has been promoted with a view to facilitate deferred payment of custom duty to encourage entrepreneurs and export oriented units to carry out their operations with least investment. These warehouses are located at places which are connected with port towns for smooth movement of goods.

2. AIR CARGO OPERATIONS :CWC is operating 4 Air cargo complexes at the international airports of Amritsar, Goa, Singanallur and Virugambakkam. It also manages the accompanied/mishandled cargo warehouse at Indra Gandhi International Airport at New Delhi.

3. CONTAINER TRAIN OPERATIONS :CWC got license from the Indian Railways for running container trains on pan India basis. CWC is operating container trains transporting EXIM containers between Loni (Delhi) J.N Port (Navi Mumbai) and LoniMundra. CWC runs about 300 trains in these sectors and handles about 26000 TEU annually. It is also operating Container Rail Terminal at Loni and Kalamboli(Navi Mumbai) on PPP model.

4. INTEGRATED POST TERMINAL CHECK :CWC is operating an integrated truck terminal for providing support services to the import/export trade with Bangladesh through land route at Petrapole (West Bengal) on the Indo-Bangladesh border. The terminal, spread over an area of 17.08 acre, has facility for truck parking, weighment, storage, customs examination, etc.

5. DISINFESTATION AND PEST CONTROL SERVICES :CWC has the responsibility to undertake disinfestations /pest control services beyond its warehouses in respect of Agricultural produce or other notified commodities. Over the years, CWC has developed the expertise in Pest Management in the following areas. Rodent Control House hold Pest Management- Cockroaches, Mosquitoes, House Flies, Bed Bugs, Spiders, Lizards, Carpet Beetles, Fleas, Ants, Wasps, Locusts etc. Storage Pest Management. Anti-termite treatments (Pre & Post Construction) Container Fumigation. Ship Fumigation(on Board) Pre-shipment fumigation of Export Cargo Rail Coach disinfestations Aircraft disinfestations Hospital & Nursing Homes Treatments Disinfestations of Hotels & Restaurants Disinfestations of Commercial Complexes & Office premises. Disinfestations of Oil Refineries Disinfestations of Airports & Ports Disinfestations of Delhi Metro Rail Premises

Major clients of CWC for pest control services include:o o o o o o o o o o o o

Many leading grain exporters Shippers for containerized cargo Indian Railways Air Indissa Air Sahara Air Deccan Indian Airlines Jet Airways Airport Authority of India Indian Oil Corporation GAIL (India) Limited Reserve Bank of India

o o o

AIIMS Central Public Works Department VSNL, ONGC, AIR etc

Pre-shipment fumigation and ship fumigation facilities are offered at the following ports:

Mundra Kandla Jamnagar Pipavav Mangalore/Karwar Tuticorin Visakhapatnam Kakinada Kolkata Haldia Navi Mumbai Port Blair

The Corporation is catering to quarantine treatments at the following major Centres :o o o o o o o o o o o o o o o

CFS-JN Port CFS-Tuticorin (Tamil Nadu) CFS-Chennai CFS-Adalaj (Ahmedabad) CFS-Kandla Port (Gandhidham) CFS-Vizags CFS-Whitefield (Bangalore) CFS-Panambur (Mangalore) ICD-Patparganj (Delhi) CW-Nampally (Hyderabad) CW-Kakinada (Hyderabad) CWC-Regional Office, Bhopal CWC-Regional Office, Kolkata CW-Cochin (Hyderabad) CWC-Regional Office, Mumbai

6. FARMERS EXTENSION SERVICE SCHEME :In order to educate the farmers on scientific storage of food grains and post harvest loss minimization, CWC introduced its Farmers Extension Service Scheme in 1978-79 wherein the technical staff posted at its warehouses visit

the adjoining villages and train the farmers on Post Harvest Technology. The scheme is presently in operation through 292 rural based warehouses. Further, to encourage the farmers and motivate them to avail public warehousing facilities, CWC offers a rebate of 30% on its storage charges for the farmers stocks. A warehouse receipt, which is a negotiable instrument, is issued to the farmers, who can obtain institutional credit on pledge of the Warehouse Receipt and thus avoid distress sale.

GROWTH IN THE STORAGE CAPACITY OF CWC :The owned warehousing capacity and hired warehousing capacity of Central Warehousing Corporation has grown over the years.

(In Lakh Tonnes) As on Owned 31.03.2000 54.47 31.03.2001 31.03.2002 31.03.2003 31.03.2004 31.02.2005 56.12 68.45 76.11 80.75 84.35

Hired 20.32 27.79 20.72 15.03 12.84 15.67

Total 74.79 83.91 89.17 91.14 93.59 100.02

STATE WISE STORAGE CAPACITY AVAILABLE WITH DIFFERENT STORAGE AGENCIES IN THE COUNTRY :STATE
FCI CWC SWC OTHERS GRAND TOTAL

ANDHRA PRADESH BIHAR GUJRAT HARYANA KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA ORISSA PUNJAB RAJASTHAN TAMILNADU UTTAR PRADESH WEST BENGAL JAMMU & KASHMIR HIMACHAL PRADESH GOA ASSAM ARUNACHAL PRADESH MANIPUR MEGHALAYA NAGALAND SIKKIM TRIPURA MIZORAM JHARKHAND UTTRANCHAL CHHATISGARH UNION TERRITORIES GRAND TOTAL

33.68 14.40 22.82 12.85 83.75 4.91 0.97 2.03 5.49 13.40 5.70 6.23 2.27 2.25 16.45 22.95 4.40 16.07 15.90 59.32 6.30 4.54 8.98 4.31 24.13 5.36 1.30 1.92 0.79 9.37 5.46 6.75 11.38 5.25 28.84 15.71 15.64 12.20 13.69 57.24 6.25 1.88 4.05 4.52 16.70 77.81 7.74 60.12 60.67 206.34 9.09 3.75 7.19 0.03 20.06 7.67 8.02 6.36 24.33 46.38 25.60 11.56 28.88 14.95 80.99 10.62 6.86 2.27 1.31 21.06 1.03 0.26 0.15 2.52 0.18 0.18 0.19 0.27 0.11 0.34 0.18 1.11 2.11 9.27 5.30 0.21 0.07 1.04 0.64 0.00 0.00 0.00 0.13 0.00 0.24 0.00 0.36 0.75 2.37 2.05 0.00 0.00 0.00 2.48 0.00 0.00 0.11 0.00 0.00 0.00 0.00 0.00 0.00 6.07 0.00 1.49 0.40 0.14 1.10 0.05 0.23 0.01 0.11 0.07 0.31 0.00 0.35 0.00 0.00 0.00 2.73 0.73 1.33 6.74 0.23 0.41 0.31 0.51 0.18 0.89 0.18 1.82 2.86 17.71 7.35

260.31 101.90 195.20 170.60 728.01

FINANCIAL PERFORMANCE OF CWC :The corporation has been making profits and paying dividends consistently.

Year

Turnover

Net Profit

(Dividend paid to)

1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04

255.64 276.34 339.86 379.94 471.08 462.86

(Pre-tax) 41.50 48.30 73.33 90.72 47.62 33.88

Central Govt. 4.49 4.49 7.49 7.49 4.12 2.25

others 3.67 3.67 6.11 6.11 3.36 1.84

Total 8.16 8.16 13.60 13.60 7.48 4.09

WAREHOUSING CORPORATION ACT 1962

Central Warehousing Corporation works on the guidelines of Warehousing Corporation Act 1962. But some of the regulations of the Act were later amended. Some of the major guidelines of the Act, which are required for establishing and operating of Central Warehousing Corporation in any part of India are as follows :Subject to the provisions of this Act, the Central Warehousing Corporation may :1. Acquire and build godowns and warehouses at such suitable places in India as it thinks fit; 2. Run warehouses for the storage of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities offered by individuals, corporative societies and other institutions; 3. Arrange facilities for the transport of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities to and from warehouses; 4. Subscribe to the share capital of State Warehousing Corporation. 5. There shall be an executive committee of the Central Warehousing Corporation, which shall consist of : a. The chairman and Vice-Chairman of the board of directors; b. The managing director and; c. Two other directors chosen by the corporation in the prescribed manner. 6. The Central Warehousing Corporation shall maintain two separate funds, namely;

a. The Central Warehousing fund (hereinafter referred to as the Warehousing fund) b. The General Fund. 7. A Warehousing Corporation may , for the purpose of carrying out its functions under this Act, borrow money a. From the Reserve bank or; b. From the State Bank, for such periods for which, and upon any of the securities against which, it is authorized to advance and lend moneys, under the provision of [ the State Bank of India Act ] c. From any nationalized bank d. From such insurance company, investment trust or other financial institutions as may be approved by the Central Government in this behalf. 8. Every Warehousing Corporation shall establish a reserve fund out of its annual net profits.

SWOT ANALYSIS OF CWC :-

STRENGTHS

WEAKNESSES

Presence across the country Homogeneous storage practices Established quality practices in identitypreserved storage. Can store a range of products and very large quantities. Satisfactory record keeping and financial accounting. Warehouse receipts are accepted by most banks.

Not well integrated with private supply chains. Have yet to practice commingled storage Do not inspire confidence among some domestic and many international lenders. Biased towards consumption centres. Public ownership diminishes freedom to expand and improve services.

OPPORTUNITIES

THREATS

New businesses aimed at shorter cost-effective private supply chains. Partnerships and alliances with the private sector. Alliances with commodity exchanges to act as delivery points Alliances with transport providers including multi-modal transport providers for door-todoor credit.

Certification and regulation of existing privately-owned warehouses would lead to increased competition in the hinterland.

REFERENCES:1. www.cewacor.nic.in 2. www.indiastat.com