These warehouses are owned by government and semi government bodies and are made available to private firms to store goods on payment of rent. The public warehouses are usually set up to help small traders who are not in position to have their own warehouses due to financial constraints.

Therefore, in order to promote trade and industry, central or state governments come forward to cater such storage needs of traders/retailers. Anyone can avail these facilities to solve its short-term distribution needs. Retailers sometimes due to increased sales even find their private warehouses insufficient if their facilities have reached capacity or if they are making a special, huge purchase of products for some reasons.

For example, before festivals or before marriage seasons, retailers may order extra merchandise to avoid ‘out of stock’ situations. These warehouses are typically regulated by the government bodies. Costs incurred by the private firms for the use of public warehouses are considered as variable. These warehouses are mainly used by manufacturers/producers, exporters and importers.

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