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Canada (511,364)
INTB 2200 (27)


4 Pages

International Business
Course Code
INTB 2200
Luming Wang

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Lecture21: Increased Provision of Storage and Warehousing facilities: It has been well said that the business of accumulating and storing perishable as well as non-perishable products in times of flush production, preserving them safely and then distributing them in times of scarcity is necessarily a part of production and equal in importance and dignity. By holding back a part of the surplus at harvest time the middlemen prevent a sharp fall in prices of commodities so that the producer's share in the benefit is increased and by letting out produce from the store in seasons when prices are normally likely to rise sharply, they check the rise and bring about some stability in market prices which benefits the consumer immensely." Storing is, therefore, a very important part of marketing. This point was realised by the Royal Commission on Agriculture and subsequently supported by the Central Banking Enquiry Committee. Storing goods, before they are sold is an important part of marketing. This point was fully realised by the Royal Commission on Agriculture and subsequently supported by the Central Banking Enquiry Committee and later on by the Agricultural Finance Subcommittee, the Rural Banking Enquiry Committee and by the Rural Credit Survey Committee. All these bodies recommended that storage and warehousing facilities should be made available at all nuclear points of trade in agricultural produce. As mentioned in the previous section, losses in storage are due partly to the change in temperature, dampness and partly to insects etc. These losses in temperature can be reduced by making provision for efficient ventilation in the godowns and by closing them during the monsoons and keeping them open during the dry season. Grains in bags can also be protected by damage. It is necessary that sufficient space be kept between the bags while preparing a stack-plan. Storage of farm produce is one of the essential elements of orderly agricultural marketing. It is necessary at various levels to varying degrees. The method of storage at the primary market level depends upon the prevailing traditions, value and the retaining capacity of the commodities to be store, the availability of facilities for storage and the waiting capacity of the producer-seller. Due to the lack of storage facilities that are adequately and efficient the losses are great. Realising the need for good storage and warehousing facilities the Indian parliament in acted the agricultural produce (development and warehousing) Corporations act in June 1956 in order to accelerate the efforts of building warehousing, the government subsequently passed the warehousing corporations act in 1962. Accordingly the national co-operative development corporation, the central warehousing corporation (CWC) and the SWC in each state came into existence. A 3 tier storage system was suggested by various committees viz. a. The National Level b. State and District level c. Village and Rural level In accordance with these suggestions, the food corporation of India and the CWC created storage facilities at centers of all India importance. The state government and the SWC made warehousing and provide
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