Government aims to cut logistics costs with National Logistics Policy, PM Gati Shakti initiatives: Pralhad Joshi

New Delhi [India], March 2 (ANI): 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, said Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Pralhad Joshi, on the 69th Foundation Day of the Central Warehousing Corporation (CWC) in Delhi on Sunday, the Ministry of Consumer Affairs, Food & Public Distribution said in a release on Sunday.
Recognising its pivotal role in India's logistics and supply chain infrastructure since its inception in 1957, he further commended the corporation's efforts in operational efficiency, transparency, and accountability through the integration of digital initiatives.
Joshi emphasised CWC's crucial role in government initiatives such as 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.
Underlining the government's commitment to reducing logistics costs, the Minister said, "With the launch of the National Logistics Policy (NLP) 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 organization, is poised to support these objectives through modern infrastructure development and efficiency enhancements."
Speaking on the occasion, the Minister highlighted CWC's transformation from a conventional warehousing entity to a dynamic logistics service provider, stating, "CWC has evolved into a symbol of efficiency, innovation, and reliability, with an extensive network of over 700 warehouses and an operational storage capacity of 148.29 lakh metric tonnes."
Reflecting on India's historical legacy in warehousing, Joshi remarked, "India has a rich history of storage solutions, dating back to the Indus Valley Civilization and Patliputra in the Mauryan and Gupta empires. Today, modern technology-driven warehousing has revolutionized the sector, with India's warehousing market expected to grow at a remarkable 15 per cent CAGR, reaching $35 billion by 2027." The Minister acknowledged CWC's significant contribution to infrastructure development and stated that CWC has expanded its storage capacity by an additional 21.65 lakh square feet in FY 2023-24 with a record capital expenditure of Rs 613 crore. He added that its e-commerce capacity has grown twelvefold since 2021 to approximately 80 lakh square feet in 2025.
He praised the asset monetization of CWC's assets at 18 locations, mobilizing an investment of Rs 820 crores under the asset monetization plan. Under the Atmanirbhar Bharat Mission, CWC aims to foster self-reliance by having an efficient and substantial supply chain, encouraging private sector participation, investing in technology advancement, and creating a conducive environment.
Union Ministers of State for Consumer Affairs, Food and Public Distribution, BL Verma and Nimuben Jayantibhai Bambhaniya, also graced the event.
During their address, both ministers reiterated CWC's commitment to ensuring the nation's food security by enabling seamless storage supply. Noting Prime Minister Narendra Modi's decision to raise the Minimum Support Price (MSP) for all mandated Rabi crops for the 2025-26 marketing season, they underscored the government's efforts to improve farmers' welfare.
The event commenced with a presentation on the overview of CWC performance by Santosh Sinha, Managing Director, CWC. He emphasized the modernization of conventional warehouses in Tier-I and Tier-II cities, the development of cold storage facilities under the PPP model and the leveraging of partnerships with stakeholders. CWC has added new capacities with more than 120 lakhs sq ft capacity hired during 2024-25, storage of 70 Lakhs Cotton Bales and 1.90 crore bags of groundnut in the current season. On account of superior performance and consistent team efforts, the Corporation has been recently awarded 'Navratna Status' during April 2024. (ANI)