The Warehousing Corporations Act, 1962 was enacted to address the critical need for organized storage facilities for agricultural produce and other commodities in India. Prior to this legislation, the warehousing sector was fragmented, leading to inefficiencies, post-harvest losses, and limited access to credit for farmers and traders. The Act aimed to establish a structured framework for warehousing by creating Central and State Warehousing Corporations, ensuring better storage, preservation, and distribution of agricultural and notified commodities.
The Act replaced the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, expanding the scope to include not just agricultural produce but also other notified commodities. It was introduced during a period when India was focusing on agricultural modernization and food security, particularly after the Green Revolution. The government recognized that an efficient warehousing system was essential to stabilize prices, reduce wastage, and facilitate credit against stored goods.
Farmers and Traders: Enabled access to credit via warehouse receipts, reducing reliance on informal lenders.
Price Stability: Scientific storage minimized post-harvest losses and stabilized commodity prices.
Public-Private Partnership: Encouraged joint ventures and subsidiary companies (amended in 2001).
Institutional Framework: CWC and SWCs became key players in India’s agricultural supply chain.
The Warehousing Corporations Act, 1962, laid the foundation for a modern, regulated warehousing system in India. By integrating storage, credit, and logistics, it played a pivotal role in agricultural development and remains relevant with amendments adapting to economic changes (e.g., joint ventures, global collaborations). Its legacy continues under the Warehousing (Development and Regulation) Act, 2007, which further refined the sector’s regulatory framework.