CWC chief flags ‘malpractices’ in phytosanitary certification, pitches integrated logistics to boost agri-exports
Santosh Sinha says CWC’s technical expertise and end-to-end logistics capabilities could help reduce export rejections
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Context
The Managing Director of the Central Warehousing Corporation (CWC) highlighted concerns regarding malpractices in phytosanitary certification at Indian ports, which have led to the rejection of agricultural exports like rice and mangoes in destination markets. To address this and boost agri-exports, the CWC is proposing a shift towards integrated logistics, incorporating value-added services like preservation, grading, and phytosanitary treatment into the supply chain.
UPSC Perspectives
Economic
This issue directly impacts India's agricultural export competitiveness, a key focus area in GS Paper 3. The rejection of consignments due to failure to meet phytosanitary standards (measures to protect human, animal, and plant life or health) represents a significant non-tariff barrier to trade. As India expands its global footprint through , compliance with these standards becomes paramount. The CWC's proposed solution—an integrated logistics model—aims to streamline the supply chain by combining storage, grading, and phytosanitary treatments. This approach can reduce post-harvest losses and ensure quality compliance before the produce reaches the port, potentially increasing export realization for farmers and boosting overall agricultural GDP.
Governance
The allegations of "malpractices" in phytosanitary certification underscore a crucial governance challenge in trade facilitation. Effective export regulation requires robust, transparent, and incorruptible institutional frameworks. The , a statutory body established under the , operates under the . Its initiative to incorporate phytosanitary services signifies a proactive institutional response to a regulatory failure. For UPSC, this highlights the need for capacity building within regulatory bodies like the and the importance of digitization and traceability in the certification process to prevent malpractices and ensure the credibility of Indian exports.
Technological
The CWC's investment in advanced logistics solutions, such as the planned hyperloop freight trial at in collaboration with IIT Madras, demonstrates the application of cutting-edge technology to traditional sectors. The use of a Linear Induction Motor-based system for container movement aims to reduce transit times and logistical bottlenecks between ports and container freight stations. This aligns with the goals of the , which seeks to develop integrated multimodal infrastructure. From a technological perspective, modernizing warehousing with automated grading, sorting, and advanced preservation techniques is essential for maintaining the quality of perishable agricultural goods destined for international markets.