Project Report For Nabard warehouse
Project report for Nabard warehouse is as follows.
In 2021, the Government of India introduced ‘The Warehousing (Development and Regulation) Act’ with the goal of promoting private sector participation and developing and regulating the warehousing business. The primary goal of this Act is to provide a regulated environment for the issue of Negotiable Warehouse Receipts (NWR) through the Warehousing Development and Regulatory Authority (WDRA), which was established in October 2010 under the aforementioned Act. The WDRA’s tasks include the registration and accreditation of warehouses that want to issue NWR.
Only 22% of the total storage capacity is available in the major consumption states. Even some of the states have got storage capacities of increase than one month of their requirement. While obvious factors such as proximity to the state’s major mandis, differences in the quantities of food grain and pulses produced within the state, and so on are the major causes of regional imbalances, other key factors such as the extent of interest but also initiative shown by bank officials in promoting the concept of rural godowns to local entrepreneurs, publicity and awareness created about the scheme at the local level, and so on also played a major role in these racial imbalances. In short, the majority of godowns and storage space are occupied by prominent producers of food grain and allied agricultural goods.
Market potential & Strategy
Private sector interest in the warehousing business increased after the National Bank for Agriculture and Rural Development (NABARD) and National Cooperative Development Corporation (NCDC) implemented the “Rural Godown Scheme” in 2001-02. (NCDC).
The warehousing capacity created during the last ten years, particularly those sanctioned by NABARD, has an average storage capacity per warehouse of 1,261 metric tonnes (MT), with about 75 per cent of godowns having a capacity of less than 1,000 MT. The growth of small and medium godowns suggests that the majority of them were built by farmers or a community of farmers, guaranteeing that distress sales are decreased and farmers receive higher rates for their produce.
Despite the fact that storage capacity increased at a CAGR of 6.7 per cent over the last decade until March 2010, the irony remains that approximately 20-30 per cent of the complete food grain crop is squandered owing to a lack of storage capacity, regional imbalance in warehouses, a lack of proper scientific storage, and ineffective logistic management in the industry. country. Nonetheless, with enough storage capacity in place, a normal handling loss of 5-7 per cent is projected to persist.
to increase storage capacity and 2) to renovate existing state-owned facilities The majority of warehouses operated by state entities are over 15-20 years old and hence require modernization to reduce waste levels. With a current state-owned capacity of 37 MMT and restoration costs of roughly Rs.1,000 per metric tonne, the total necessary expenditure is projected to be in the range of Rs.37-40 billion.
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