Traditionally, warehouses have been looked upon as an asset heavy model which gave importance to creation of space alone without any emphasis on efficient handling, scientific processes and its management.
Of late, we are seeing importance being given to systems and processes which are making agri-logistics independent of infrastructure and agnostic to geographic location.
Agriculture sector in India, accounts for about 16 per cent of the GDP in spite of employing more than 50 per cent of the country’s workforce. Despite agriculture losing its share in GDP, it is still the largest economic sector.
Agriculture has begun to regain its sheen, with the government and private entities taking interest in empowering the sector. However, the agriculture supply chain in India suffers from inefficiencies leading to heavy losses of commodities due to lack of proper storage and transportation facilities. It is estimated that about 20 per cent of the foodgrains (including grains, fruits and vegetables, spices, etc) are lost annually because of poor storage facilities. There is a huge gap in the quantity of agricultural produce and the available scientific management.
The huge gap between the demand and supply of logistics services, which have been left unattended due to the unorganised nature of the market, has opened up many opportunities for players.
Curated fromHow warehousing can spur economy