Daljit Singh NDR
Transcript of Daljit Singh NDR
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Future of Agri Warehousing and
Mechanization of FoodWarehouses with Rail SidingA presentation by the NDR Group
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Agricultural Scenario in India India is the 2nd largest food producing nation after China.
More than 20% of the produce is lost due to lack of
storage facilities/ packaging/cold storage etc
Three public agencies are providing logistic support tothe agri sector namely
Food Corporation ofIndia (FCI)
Central Warehousing Corporation (CWC) and
17 State Warehousing Corporations (SWC)
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Steps taken by the Agencies Due to lack of space gap with the agencies private
partnerships were sort in the year 2002.
A 7 year guarantee period was given for the rentals forhiring of any new warehouses. The guarantee has beenincreased to 10 years now.
Not many private players are able to bid for rail sidedwarehouse because of unviable conditions
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Present Scenario Huge GAP in the space required
Fragmented space available
Present space not suitable (quality warehousing) forstoring the grains
Far from Rail Sidings
Two operations involved because of Rail siding distance
Huge loss of produce due to lack of space
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Road Freight - Disadvantages Diesel costs are heading north and so are the freight
charges
Labour is expensive hence need for mechanisation
Finding drivers is a challenge It is a challenge to handle bulk cargo by road
Toll charges almost all major roads in India levyheavy toll.
Entry Restrictions major cities have entry restrictiontimings
Inadequate number of vehicles for this particularpurpose single vehicle owners form about 70% of theindustry.
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Rail vs RoadLocations Rail Freight per MT Road per MTMumbai New Delhi 1100 1350 # 1800 2300*
New Delhi Mumbai 1000 1250# 2000 2350*
Vizag Delhi 1250 -1350# 2100 -2300
# - Concor Rail freights source* - CII Logisitcs indicative trucking rates
Rail Road
Cheaper option Expensive
Congestion of Roads is
prevented
Roads are getting clogged
Environmental Friendly Polluting the Environment
Advantage of Rail over Road
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Going Forward -FCI Consolidate smaller facilities to a rail sided operation by giving
opportunities to the rail sided warehouses by relaxing norms.(pastutilisation, distances)
It is very difficult to expect 2 quotes for a same location by railsiding, it is rejected and hence we will never have rail sided
warehouses and you must give a 50 km vicinity for a rail sided
warehouse. Railway spec of warehouses is 70 feet per warehouse which is very
difficult to get so much land and warehouses must be atleast 150 to200 feet width because we have conveyors now.
Value addition to be done for wastages Use of conveyors for loading /unloading
90% of bulk transport to happen only byTrain so what are we doingtowards it ?
Allow integration of facilities so we can bring down cost as we do nothave rakes and it is a seasonal business.
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Going Forward for other agri
All agri warehousing is now done by traders
Need to get into more rural areas and need action with thecurrent setup of 100% depreciation and get into a credit setup
for the farmer to actually store produce and fund him basedon the stock price of commodity
Best bet for wastage reduction and actually pay farmers
Need a 15 yr funding from banks on this to give the farmer atbelow 50 Rs per ton per month.
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Going Forward for Cold Storages
More number of cold storages with trading facilities
Cheaper alternatives to the farmers
Get more into the funding for farmers
Need to understand the info on farmer for the credit rating andalso on the info on the commodity for the crop.
Need to close out on processing centre for the cold storages toavoid wastages and much better packing facilities.
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For the Bankers - Need to support huge rural warehousing locations . Give loan to farmer for produce and not trader.
Dalal currently giving 90% of price due to farmer at his
field which we have to convert to 90% loan on delivery tothe warehouse and share the increase in produce price withfarmer. (staple food never has come down from harvestprice in the last 40 yr of recorded price index)
By this we get to know farmer better and more personal
contact with bank which will lead to a explosive farm creditfor the following which can double the current bankingindustry .
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For the Bankers - Crop loans Crop insurance
Crop pattern funding
Crop storage loan Vehicle loan to farmer both for personal and farming
Housing loan for the farmer
Medical insurance
Personal loan for farmer and marriage loan for farmer Huge personal touch with farmer which will make ruralbanking a reality and farmers life a little better
Crop storage with easy loan (if required no liability loan) isthe best way to earn a farmers trust and comfort.
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Crop
Financing
Financingagricultural inputs(Seeds/fertilizer/
Pesticides)
Farm Machinery Loan/ cropinsurance/ medical insuran
Vehicle/Car Loans/ housing loans/marriage loans /education loan
Making Farmer to believe in farming for abetter world for all
For the Bankers -
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Facilities in a Rail Terminal
AgriAgri StorageStorageFCIFCI
Bonded/Bonded/GeneralGeneral
WarehousesWarehouses
ICD /CFSICD /CFS open yardopen yard
DOMESTICDOMESTICCARGO/CARGO/
COLDCOLDSTORAGESSTORAGES
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FACILITIES IN THE PROPOSED
Rail Linked HUBs Land Area of 40 to 80 Acres in each location
Ample facilities for
Agri produce FCI
Exim/Bonded WarehouseGeneral Warehouse
Whole-sale Market Yard, including CA, CS, Auction Hall
Rail Siding for
Container Trains
Handling of bulk cargo through FCI
Dedicated siding for major clients
Value Added Services
Re-packing Bar Coding & Labeling
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Why an Integrated HUB
Huge Investments in the land and railsiding/conveyor systems.( 50 cr) only common
services because of land cost and railconnectivity cost.
Value addition in terms of packaging/labelingcold storage etc needs to be provided.
Clubbing of cargo both FCI & Domestic willmake it feasible to run full racks.
ICD/CFS will support the exim function for thefood industry.
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View of our Timmapur facility
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Our humble uncalled views FCI has made process simple to build warehouses by private partnerships
which is good for small warehouses below 50000 ton location but we feel it is amust to have rail sidings beyond this number for all locations .
FCImust strictly implement the current proposals which have come for rail aswe feel current applies may just build the warehouse and not connect by rail
and still get 60% rent in which case FCI will lose more than 150 Rs per ton inone handling an transport which is killing in the long run.
FCI even if necessary must speak to railways to make sidings simpler and agreefor push back sidings for FCI as this is the future of food security ofIndia.
FCImust expand the warehouse width for a rail siding from current 70 to 150for a rail sided warehouse as we have to mechanise them anyway as we have
serious shortage of labour currently and we have to mechanise. This will helpto bring down area required and can still have the same number of sidings (picin last slide)
Some distances too short in many locations and must be able to club to makemore viable sidings within 50 km any location.
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Representation of proposed
increase in width
70 ftWidthwareh
ouse
70 ftWidthwareh
ouse
RAI
L
S
IDI
NG
RAI
L
S
IDI
NG
ROAD
150 ft
Width
warehouse
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Thank you for your Time