India Targets Lower Logistics Costs with CWC
The Central Warehousing Corporation (CWC), established in 1957, has evolved into a key player in India’s logistics sector. With an expansive network of over 700 warehouses and a robust storage capacity of 148.29 lakh metric tonnes, CWC is now central to the Indian government’s strategic efforts to overhaul the nation’s logistics infrastructure and reduce the country’s logistics costs.
Food Minister Pralhad Joshi recently outlined the government’s ambitious plans to reduce logistics costs from their current level of 13-14% of GDP to around 8%, in line with global standards. Addressing the 69th Foundation Day of CWC, Joshi emphasised the corporation’s integral role in meeting these targets, stating that modernisation of warehousing infrastructure and efficiency improvements would be key to driving the nation’s logistics transformation.”The government aims to streamline and improve our supply chains, with CWC playing a vital role in this transformation,” Joshi said. “By investing in modern infrastructure and enhancing operational efficiency, CWC will contribute significantly to reducing the logistics cost burden that hampers India’s economic growth.”
The minister also highlighted the broader context of the Atmanirbhar Bharat (Self-Reliance India) Mission, which focuses on developing self-reliant and efficient supply chains. This mission encourages private sector participation, fosters technological advancement, and ensures a more resilient national infrastructure. CWC’s role, particularly in enabling smooth warehousing and distribution, will directly support these national objectives. One of the standout achievements for CWC has been its successful asset monetisation efforts. The corporation has mobilised ₹820 crore by monetising assets at 18 locations under the government’s asset monetisation programme. This move has helped boost the corporation’s financial standing, enabling it to reinvest in modernisation efforts and expand its capabilities.
CWC has been a critical component in the government’s relief programmes, particularly during the COVID-19 pandemic. Its role in the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) has been invaluable, facilitating the efficient storage, handling, and transportation of essential commodities like food grains, pulses, cotton, and groundnuts. These initiatives not only ensure food security for vulnerable populations but also reinforce the critical role of logistics in the nation’s welfare.The rapid growth of e-commerce and the expanding demand for efficient logistics have further increased the relevance of CWC.
The warehousing sector has become a crucial driver of economic growth, with CWC’s enhanced operational efficiency positioning it as a leader in this space. The government’s focus on infrastructure development is expected to provide further impetus for the growth of the logistics sector, of which warehousing is a key pillar.CWC has significantly expanded its storage capacities. During 2024-25, the corporation added over 120 lakh sq ft of new warehousing space, including the storage of 70 lakh cotton bales and 1.90 crore bags of groundnut in the current season. This increase in capacity is poised to support India’s growing requirements in both food security and logistics.
With the vision of transforming the nation’s logistics landscape, CWC is well positioned to lead the charge in reducing logistics costs, improving efficiency, and contributing to India’s economic growth. As the government continues to prioritise infrastructure development under its national strategies, the role of organisations like CWC in streamlining and enhancing supply chains will only become more critical in the years to come.
