Is Micro-warehousing a Solution to Agricultural Commodity Storage?

Abstract

Addressing food security is a critical priority for development, particularly in India, where crop productivity is low and post-harvest losses reach 35%–40%, which is a considerable burden. One significant reason for these losses is the lack of storage facilities, especially in rural areas of Bihar. Micro-warehouse (MWH) company, recognizing this issue, took the initiative of introducing micro-warehouses as a solution. They focused on dealing with three commodities: paddy, maize and wheat, and also facilitated the connection between processors and farmers for selling their produce. This approach of micro-warehousing gained attention from investors, leading to funding for scaling up operations. The success of MWH company raises an important question: Can micro-warehousing be a viable strategy to address agriculture storage challenges in India? The founder of the company, considering this achievement, now contemplates expanding the business to other states.