CWC to play key role in logistics cost reduction plan: Food minister Joshi

The government aims to reduce logistics costs from the current 13-14 per cent to global standards of around 8 per cent, with the Central Warehousing Corporation (CWC) playing a crucial role in this nationwide transformation effort.

"With the launch of the National Logistics Policy and the PM Gati Shakti Programme, we aim to bring down logistics costs from the existing 13-14 per cent to global standards of around 8 per cent.

"CWC, as a leading warehousing organisation, is poised to support these objectives through modern infrastructure development and efficiency enhancements," Food Minister Pralhad Joshi said while addressing the CWC's 69th Foundation Day.

The minister highlighted that CWC, established in 1957, has evolved into a dynamic logistics service provider with an extensive network of over 700 warehouses and an operational storage capacity of 148.29 lakh metric tonnes, an official statement said.

The government's push comes as part of broader initiatives under the Atmanirbhar Bharat (Self-Reliance India) Mission, which seeks to foster self-reliance through efficient supply chains by encouraging private sector participation and technological advancement.

The minister also hailed CWC's successful asset monetisation at 18 locations, which mobilised an investment of Rs 820 crore under the government's asset monetisation plan.

He also commended the corporation's efforts in improving operational efficiency, transparency, and accountability through digital initiatives.

Joshi noted that with the rapid expansion of e-commerce and the government's focus on infrastructure development, the warehousing and logistics sector is seen as a key driver of economic growth.

He also emphasised CWC's crucial role in government initiatives like Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), ensuring efficient warehousing, handling, and transportation of essential commodities, including food grains, pulses, cotton, and groundnuts.

Ministers of State for Food and Consumer Affairs BL Verma and Nimuben Jayantibhai Bambhaniya were also present at the event.

Both ministers reiterated CWC's commitment towards ensuring the food security of the nation by enabling a seamless storage supply.

CWC Managing Director Santosh Sinha stressed the modernisation of conventional warehouses in Tier-I and Tier-II cities, and the development of cold storage facilities under the PPP model while emphasising leveraging partnership with stakeholders.

CWC has added new capacities of more than 120 lakhs sq ft capacity during 2024-25, storage of 70 lakh cotton bales and 1.90 crore bags of groundnut in the current season, he added.