NATIONAL EXPORT COOPERATIVE SOCIETY – GOVERNANCE
News: National
Export Co-operative Society to export farm, non-farming products in three
months
What's in the news?
● Nano fertilizers produced
by IFFCO and dairy products from Amul
will be among the first few products that are expected to be exported by the
first-ever National Export Co-operative Society that was approved by the Union
Cabinet on January 11.
● The
Society’s registration will be complete in the next few days and the first
consignment will be exported in three months.
National Export Cooperative Society:
● The
society formed under the Multi-State
cooperative societies (MSCS) Act, 2002 would develop a system to promote
exports.
Promoters:
● Leading cooperatives
- Indian Farmers Fertiliser Cooperative Limited (IFFCO), Krishak Bharati
Cooperative Limited (KRIBHCO), National Agricultural Cooperative Marketing
Federation of India (NAFED), Gujarat Cooperative Milk Marketing Federation
(GCMMF), better known as Amul and National Cooperative Development Corporation
(NCDC) will be the promoters of the Society and contribute ₹100 crore each.
Authorized Capital:
● The
society will have an authorized share capital of ₹2,000 crore with the area of operation all over the country.
Headquarters - Delhi.
Objective:
● The
proposed Society is expected to enhance
the scale and volume of exports.
● The
Society will be different from the
Export Promotion Council under the Ministry of Commerce that only acts as a
facilitator and provides information about the potential markets that can be
tapped for a particular product.
Advantages:
● The
Society will benefit the smallest of
farmers or artisan who has a good product but does not have access to the
right platform. Through this Society, they will get access to international
markets and good returns too.
● Once
the product has been tested for international
standards, the packaging and export will be done by the Society.
● The
Society will work as an export house for
handicrafts, handlooms, khadi and other products, ensuring enhancement of
income of the cooperative member entrepreneurs.
● This
Society will provide end-to-end services
to the cooperatives. It will open foreign bank accounts and complete all
the formalities, including necessary permissions for exporting a product.
● The
proposed Society will hire consultants
in foreign countries who will help expand its footprint across continents.
Go back to basics:
● The
Union Cabinet on January 11 approved the setting up of the Multi State Seed Society, Multi State Organic Society and Multi State
Export Society.
● Cooperatives
need to think globally and act locally to leverage their comparative advantage
in all economic areas. The focus will be on exporting the surplus available in
the country in the cooperative sector.
Cooperatives in India:
● There
are 8.54 lakh registered cooperatives
with more than 29 crore members.
● Cooperatives
have a presence in almost all sectors,
for example, agriculture (food grains, pulses, oilseeds, etc.), horticulture
(fruits, vegetables, flowers, aromatic products, etc.), dairy, poultry,
livestock, fisheries, sugar, spices, organic products, fertilizer, handloom,
handicraft, textile, tea/coffee, minor forest produce, ayurvedic/ herbal
medicines, processed food and leather, among others.
● Cooperatives
contribute substantially in various sectors. They contribute 28.80% in
fertilizer production, 35% in fertilizer distribution, 30.60% in sugar
production and 17.50% in the procurement of marketable surplus milk in the
national economy.