Question

Describe the different types of warehouses.

Describe any two kinds of warehouses.

Name four kinds of warehouses and explain each of them.

Answer 1

1. Private Warehouses: These warehouses are owned by manufacturers and traders to store the goods produced or purchased by them until they are sold out. Manufacturers need their own warehouses to store goods in anticipation of demand. Wholesalers also require their own storage facilities to maintain large stocks of goods for sale to retailers. The expenses of construction maintenance and insurance for private warehouses are paid for by their owners. Private warehouses are generally located in rural and suburban areas where space is available at a low cost. Food Corporation of India and Central Warehousing Corporation have their own warehouses, which are used by the Government to keep a buffer stock of foodgrains for the public distribution system.
2. Public Warehouses: These warehouses are meant for use by businessmen in general. Any businessman can store his goods in these warehouses for some charge. Public warehouses may be owned by the government, public trusts and other public authorities. The owner of a public warehouse serves as an agent for the owner of the goods. He is expected to take due care of the goods and return them to the owner. He enjoys a lien on the goods for these charges.
   Public warehouses are located in places that are well connected by roads, railways and waterways or airways. Some of the public warehouses are general warehouses, while others are specialised warehouses. General warehouses store a variety of goods, whereas specialised warehouses store one type of goods,
3. Bonded Warehouses: A bonded warehouse is established under a bond with the customs authorities for the storage of dutiable goods until the payment of import duty. The owner of a bonded warehouse gives an undertaking not to release the goods until the customs duty is paid. Bonded warehouses are located in port towns and are licenced by the government. These warehouses operate under the vigilance of customs officials. Bonded warehouses accept imported goods for storage before the payment of customs duty. Once the duty is paid, goods are released on the authority of a warrant issued by the customs authorities.
4. Cold Storages (Refrigerated Warehouses): These warehouses are constructed for the storage of perishable goods such as vegetables, fruits, milk products, fish, eggs, etc. Cold storage is very useful to farmers, traders and consumers.