Warehousing Effect on Economy and Agriculture:

Every country in the world depends on other countries for a variety of needs. It may be food, defense, or petroleum products. Within the country, it varies from place to place for different kinds of products because every product or inventory is not available in every area. People need to get the product or inventory from different places as everything is not available in one place; this is where warehousing effect on economy plays a part.

Example: India is known for spices, and the Middle East is full of oil resources; India exports spices and imports petroleum. When we are exporting or importing, we will do it in bulk amounts to save time and cost, but once we import or export in bulk, we need a place to store the product.

Warehousing Effect on Economy

As we can’t use the whole amount of product in one go, we will discuss how warehousing affects the economy below.

• Cost saving: as we can buy or sell in bulk and we have a storage space till the product is sold or distributed, it saves a lot of money for the company or country in a lot of ways 
• The efficiency of the supply chain: through warehouses, we can maintain an efficient supply of products as we have excess products already stored in the warehouse, and there is no delay in the distribution process.
• Quality control: through warehousing, we can maintain the quality of the product through proper storage conditions and maintain the shelf life of the product longer.
• Distribution channel: warehouses act as a distribution channel, and they allow repacking to speed up the process.
• Food security: warehousing ensures food security by storing the excess production of food products in climate-controlled storage facilities. We can use this excess food when there is a shortage of food.
• Job creation: larger warehouses require a larger number of people to maintain, and this creates jobs for the nation.
• Protects the farmers from climatic conditions as these can store perishable goods and extend their life range
• These are mainly useful in medical fields as they can store medicine in cold facilities and be used for future purposes.
• These days, almost every business is going online, and e-commerce platforms thrive on warehouses as they can store and protect the product through consolidated warehousing.

As we discussed, every country or company mostly depends on warehousing for their growth in profits or the economy. It generates employment for a larger number of people and provides food security, and it plays a major role in the cost reduction of any product or goods by enhancing the life of the product through storage facility and maintaining quality as well as reducing waste in perishable goods through climate-controlled storage they provide food security also and boosts the economy or profits of the respective countries or companies.

Warehousing Effect on Agriculture

For every country, agriculture is the backbone of its economy. Most of the GDP comes from agriculture only for most countries. It provides food security, and through exports, countries secure foreign reserves mostly from agriculture exports. But the Major concern in agriculture is agricultural product is perishable and requires proper climatic conditions to store; otherwise, we will lose most of the harvest, and it will become a problem for both food security and the country’s economy.

• Every year, 40% of agricultural production is wasted in India for several reasons, and it amounts to almost 14 billion dollars.
• The major reason for the wastage is not having proper storage facilities to store the product after harvesting, i.e., warehousing.
• If we have proper warehousing facilities and properly regulated climatic conditions to store the products, we can save almost 14 billion dollars worth of food.
• The most essential requirement for agriculture industries is clod storage and climate-regulated warehousing to store the products because they are perishable in nature and have a shorter shelf life.
• If we have sufficient and proper warehousing, it will boost the agriculture sector, and it will lead to a boost in the economy and food security of any country.
• Warehousing plays a vital role in food security as it can safeguard the product till the next harvest.
• In India, we mostly depend on rainwater for agriculture, so there is a chance of drought and or flooding, which leads to the destruction of crops in any year.
• One year, there may be flooding, and another year, there may be drought, there are not guaranteed climatic conditions, and these will lead to food shortages.
• If we have proper warehousing facilities to store the products, we can store the products for future purposes, and when there is famine, we can use those in need.

With proper storage facilities, we can guarantee the food security of any country as well as the economic growth of that country, so it plays a vital role when it comes to the agriculture sector. With excess production, we can export to other countries as it boosts the GDP of the country.