**New Delhi**: The Indian government, led by the CWC, is targeting a reduction in logistics costs from 13-14% to 8% of GDP. Key initiatives include the National Logistics Policy and improvements in infrastructure and digital transformation to enhance efficiency in supply chains.
The Indian government is initiating a significant effort to reduce logistics costs in the country from the current range of 13-14% of GDP to a more globally competitive benchmark of around 8%. This strategic shift is being spearheaded by the Central Warehousing Corporation (CWC), which is a key player in this transformation, as stated by Union Food Minister Pralhad Joshi during the CWC’s 69th Foundation Day celebrations.
Minister Joshi emphasised the importance of various initiatives, including the National Logistics Policy and the PM Gati Shakti Programme, in achieving these ambitious cost reduction targets. “CWC, as a leading warehousing entity, will support these objectives by focusing on modern infrastructure, operational efficiency, and digital transformation,” he said.
The CWC, established in 1957, has evolved into a crucial logistics service provider, managing over 700 warehouses with an impressive operational storage capacity of 148.29 lakh metric tonnes, as detailed in an official statement from the organisation. As part of the government’s Atmanirbhar Bharat initiative, the CWC is actively promoting efficient supply chains by facilitating private sector participation and technological advancements.
Moreover, the Minister highlighted CWC’s successful asset monetization strategy, which has garnered Rs 820 crore from 18 locations under the government’s asset monetization plan. Joshi also praised the CWC’s digital initiatives aimed at improving operational efficiency, transparency, and accountability, noting the sector’s emergence as a critical driver of economic growth amid the rapid expansion of e-commerce.
CWC is deeply involved in various government programmes such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), which ensure the effective warehousing, handling, and transportation of essential commodities including food grains, pulses, cotton, and groundnuts.
At the event, Ministers of State for Food and Consumer Affairs, BL Verma and Nimuben Jayantibhai Bambhaniya, reiterated the importance of CWC’s mission to enhance India’s food security through robust storage and distribution systems.
CWC Managing Director Santosh Sinha outlined the organisation’s plans for modernising traditional warehouses in Tier-I and Tier-II cities, alongside expanding cold storage facilities under the Public-Private Partnership (PPP) model. He highlighted CWC’s notable accomplishments, including the addition of over 120 lakh sq ft of storage capacity anticipated for the 2024-25 period, and the successful storage of 70 lakh cotton bales and 1.90 crore bags of groundnuts in the current season.
With these strategic initiatives and ongoing modernization efforts, the CWC is well-positioned to play a pivotal role in reshaping India’s logistics landscape, aiming for enhanced cost efficiency and robust supply chain management across various sectors.
Source: Noah Wire Services
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