Budget may unveil a national warehousing grid to plug key gaps, Maharashtra model

  1. The Centre is likely to announce a scheme for an integrated warehousing network in the Budget,2019.
  2. The aim of the scheme will be to operationalise a national warehousing grid’ to effectively integrate the highly fragmented warehousing market in India.
  3. The scheme is likely to be similar to Maharashtra where the government has kicked off a scheme for identifying warehouses spread across various government departments and institutions to be then taken over and managed by one nodal agency.
  4. Currently,much of the country’s warehousing capacity outside of the agriculture sector is in the unorganised sector with small warehouses of less than 10,000 sq ft area.
  5. According to NITI Aayog,out of the total warehousing space of about 180 million sq ft in the country,the industrial segment accounts for about 86% and the agricultural sector the rest 14%.Two-thirds of the warehousing capacity in the food storage segment is owned by the public sector.
  6. Further,the scheme comes at a time when India’s warehousing capacity, apart from conventional storing services is increasingly being used to offer value-added services such as the consolidation and breaking up of cargo, packaging, labelling, bar coding and reverse logistics.

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