Introduction to Warehousing System in India

Back in the day, decades ago not only within the metropolitan cities but also in the city’s outskirts used to be old rundown constructions known as “godowns”. These godowns were usually used as a place for storing inventory for an extended period of time. The reference of a warehouse dates back to the early days of trade and the movement of goods and commodities from one place to another. The Indian warehousing market has been segmented based on type, ownership, infrastructure, usage pattern, sector and region.


In current times warehouses have developed with advanced state of the art facilities like real-time tracking mechanisms which have been achieved by the click of a single button such as Quick Response (QR) Code, Automatic Identification and Data Capture (AIDC) technology, Real-Time Locating Systems and Radio-Frequency Identification (RFID) along with highly sophisticated stockrooms. These have been achieved with the help of advanced and evolving technology which has been used to meet these ever-changing requirements.

In India, across twenty states there are 1,885 total warehouses as of February 25, 2021, registered with Warehousing Development and Regulatory Authority (WDRA) who is responsible for the development and regulation of warehouses, negotiability of warehouse receipts and promoting orderly growth of the warehousing business in the country.

Some of the major players operating in the warehousing market are CTC Freight Carriers Private Limited, Atlas Logistics, Safexpress, Agarwal packers and movers, SAL Logistics, Star Agriwarehousing and Collateral Management Limited (StarAgri), etc. Most of these warehouses are focused on the development of their storage capacity which is most technologically supported and in turn creates a modern infrastructure to fulfil the ever-increasing demand. A warehouse helps the end-user or client to directly approach them, thus eliminating the in-between intermediaries which reduce the length of the supply chain. For example, farmers can directly go to the warehouse and store their goods rather than going through a middleman or dealer.

As part of overall e-Governance initiatives, the State Government of Rajasthan has a commitment towards enhancing transparency in its functioning and in 2011 they decided to implement e-Procurement for public procurement to be used by all government organizations in the State including Public Sector undertakings (PSUs). To achieve this aim, as a part of the Mission Mode Project under the National e-Governance Plan (NeGP) of the Ministry of Commerce, Government of India, they implemented the Government e-Procurement solution developed by National Informatics Centre (GePNIC). Apart from state government procurement agencies, the government has encouraged private procurement centres also along with e-mandis or purchasing centres, as its main objective would be to ensure that the farmers get the right price and the end-user or client gets the goods or commodities. 

StarAgri one of the leading post-harvest solutions company and has come up with 22 new procurement centres or registered e-mandis in the state of Rajasthan which already has around 120 registered warehouses as per WDRA. StarAgri has a Pan-India network of 800+ warehouses across 16 states and over 1.5 million tonnes of warehousing capacity. They cater to customers ranging from banks to international bulk commodity buyers, food, health and FMCG companies and commodity exchanges. They also deliver integrated post-harvest solutions including warehousing, collateral financing, procurement and value-added services to enhance efficiency across the entire food supply chain. StarAgri has created a workplace that attracts the best professional talent, integrating risk management in agri-credit and practicing global standards of governance, StarAgri aims to be the most respected and inclusive agri-solutions company. Today, they have direct relationships with more than 1 lakh farmers across India and aims to reach many more.

To learn more about the warehouse market, how you can become a warehouse partner with Staragri, and start earning a lucrative income, please register below.

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