Project report for Rural warehouse


The project report for warehouse is as follows :

ndia has become self-sufficient in food grains and achieved a remarkable growth in the production of pulses, oil seeds and fibres to meet the requirements of the country.  Although  our  farming  community  toiled  hard,  the  small  and  marginal segment of farmers could not get real benefit of the growth in the economy due to either non availability of adequate storage infrastructure within the vicinity of production areas poor access to the godowns.  This situation has forced them to dispose    the    produce    at    farm    gate    at    a    price    determined    by    the middlemen/merchants/commission agents.  Only a handful of influential farmers who have the infrastructure to overcome the market fluctuations, could derive the benefits.Further,  as  the  small  and  marginal  farmers,  who  generally  remain  outside  the purview of formal financing institutions depends heavily on the borrowed money from money lenders for the agricultural operations. Not only the borrowings are at an unreasonably high rate of interestbut they are forced to sell their produce immediately after the harvest at very lowrate. Thus, the farmers lose heavily on their  investments.  This  vicious  cycle  is  recurring  year  after  year  making  the farmers poorer. The creation of small storage facilities, through construction of grain godowns, having a capacity ranging from 50 MT to 250 MTin villages may be aremedy for the farmers, who not only can store their own produce, but also provide storage space for rentals.  To such farmers who store their produce for rents  should  have  access  to  pledge  loan  against  warehouse  receipts  from financial institutions.

Market potential & Strategy

The demand drivers considered for the warehousing market are the manufacturing and consumption sectors. The manufacturing sector-led demand comprises the requirements arising from the need for the storage of raw materials and finished products from industries such as automobiles, cement and food processing, among others. In terms of consumption-led demand, all product categories, ranging from apparel and footwear to home and lifestyle, have been considered. The  Indian  logistics  industrywas  estimated  to  be approximately $160  bn in FY17.  The  key segments includeroad,  rail,  coastal, warehousing,  cold  chain  and  container  freight  stations  and  inland  container  depots  (CFS/  ICD). The domestic  logistics market  is  expected  to grow  at  a CAGR  of  approximately 10%. Indian  logistics  market  is  expected  to  be  driven  by  the growth  in  the  manufacturing,  retail,  FMCG  and  e-commerce  sectors.  Development of  logistics-related  infrastructure such  as  dedicated  freight  corridors,logistics  parks,  free  trade  warehousing  zones,  and  container  freight  stations  are expected  to  improve  efficiency. The  industry  is  dominated  by  transportation,  which  accounts  for over85%of  total value, and its share is expected to remain high over the next fewyears. The sector provides employmentto more than 22 million people. Improving logistics sector has significant bearing onexports and media sourcesestimatethat a 10?crease in indirect logistics cost could potentially increase 5-8% of exports.

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