The Warehousing Corporations Act, 1962

Summary of the Warehousing Corporations Act, 1962
Key Components
1. Definitions: - Agricultural Produce: Includes foodstuffs, cattle fodder, raw cotton, raw jute, and vegetable oils.
• Notified Commodity: Any commodity (other than agricultural produce) declared by the Central Government.
• Appropriate Government: Central Government for the Central Warehousing Corporation, State Government for State Warehousing Corporations.
2. Corporations: - Central Warehousing Corporation (CWC): Established under Section 3.
• State Warehousing Corporations (SWCs): Established by State Governments with CWC's approval.
3. Management and Structure: - CWC & SWCs: Body corporates with perpetual succession and a common seal.
• Board of Directors:
• CWC: Composition not detailed in the provided context.
• SWCs: 5 directors nominated by CWC, 5 by the State Government, and a Managing Director appointed by the State Government with CWC's approval.
4. Financial Provisions: - Share Capital:
• CWC: Not detailed in the provided context.
• SWCs:
• Authorized Capital: Up to 2 crores of rupees, with the Central Government empowered to increase this limit as determined, reflecting the new context's emphasis on flexible capital adjustment.
• Subscription and Issue:
• Initial and subsequent share capital issues require a 50% subscription by the State Government, with the CWC subscribing to the remaining 50%.
• Borrowing Powers: From Reserve Bank, State Bank, scheduled banks, nationalised banks, and approved financial institutions, with limits.
• Investment of Funds: In government securities or as prescribed.
• Disposal of Profits: Establishment of a reserve fund, with dividend rates regulated.
5. Accounts, Audit, and Governance:
• Annual Accounts and Audit: By a qualified auditor, with oversight by the Comptroller and Auditor-General of India.
• Returns and Reports: To the appropriate Government as required.
6. Miscellaneous Provisions: - Delegation of Powers: By the Corporation to its officers.
• Voting Rights: One vote per share in shareholders' meetings.
• Disputes: Between CWC and SWCs resolved by the Central Government.
• Winding Up: Only by order of the appropriate Government.
• Repeal and Savings: Repeals the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, with savings for existing provisions and actions.

Legislative History:

The Warehousing Corporations Act, 1962

● Act Title - The Warehousing Corporations Act, 1962

● Act Number / Year - 58 of 1962

● Act ID (India Code) - 196258

● Presidential Assent Date - December 19, 1962

● Enforcement Date - March 18, 1963

● Nodal Ministry - Ministry of Consumer Affairs, Food and Public Distribution

Precedent & Historical Rationale

● Reorganization of National Warehousing Infrastructure - Enacted to repeal and replace the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, bifurcating warehousing operations from cooperative development functions to create a dedicated statutory framework for storage logistics.

● Establishment of Central and State Storage Entities - Formulated to incorporate the Central Warehousing Corporation (CWC) and authorize State Governments to establish State Warehousing Corporations (SWCs), aimed at preventing post-harvest agricultural losses, ensuring price stabilization, and facilitating credit against warehouse receipts.

Parliamentary Trajectory & Enactment

● Formulation - Introduced by the Central Government to expand statutory storage facilities beyond agricultural produce to notified commodities, seeds, fertilizers, and industrial goods.

● Parliamentary Passage - Debated and passed by both Houses of Parliament (Third Lok Sabha and Rajya Sabha) during the November–December 1962 winter session.

● Presidential Assent - Received Presidential Assent on December 19, 1962.

● Enforcement - Enforced on March 18, 1963.

Source - Official Record of Parliament, India Code, and Ministry of Consumer Affairs, Food and Public Distribution.