The Business Bytes
TBB BUREAU
NEW DELHI, OCT 23, 2023
Union Home Minister and Minister for Cooperation Amit Shah on Monday said that the newly established cooperative export body National Cooperative for Exports Ltd. (NCEL) will become an organization representing the entire cooperative sector and in the coming days efforts will be made to develop NCEL into a complete export ecosystem covering all aspects like procurement, storage, processing, marketing, branding, labelling, packaging, certification and research and development.
Addressing the ‘National Symposium on Cooperative Exports’ organized by NCEL here today, Shah said that NCEL will also work on connecting with the Ministry of Commerce and Industry, Ministry of External Affairs and Indian embassies abroad with the Whole of Government Approach for market linkages. This apart, a design will be prepared by keeping Farmers Producers Organizations (FPOs) and Primary Agriculture Cooperative Credit Societies (PACS) together so that the production is as per the market demand.
The Union Cooperation Minister further said that the Modi government is working towards increasing exports as well as creating a smooth system to deliver its benefits to the farmers. Prime Minister Modi has formed three multi-state cooperative societies – one for seed production at the national level, one for certification and branding of organic products and the third cooperative for export, he informed.
Shah said that till now NCEL has received orders worth Rs 7,000 crore and orders worth Rs 15,000 crore are being negotiated.
Launching the new logo and website of NCEL on the occasion, the Union Minister said the cooperative will ensure that benefits of exports reach member farmers of cooperatives and will share with them about 50 per cent of the export profit over and above the minimum support price.
NCEL will not only focus on making profits from exports but also handhold farmers to manufacture products for the export market. It will also share profit with the member farmers of cooperatives, he said.
NCEL will purchase the commodities to be exported from member farmers at the Minimum Support Price (MSP) which will also increase the enthusiasm of farmers towards increasing exportable production.
Shah also distributed membership certificates to five NCEL members at the symposium being organised at the Pusa Complex in New Delhi.
He said that National Cooperative Export Limited will not focus only on profits, but focusing on the farmer will be its primary goal. He said that to increase exports, export-oriented mindset will have to nurtured in the farmers, the crop pattern will have to be changed and the entire system of branding, packaging and marketing will have to be created by spreading awareness among the farmers.
Shah said that the goals behind setting up NCEL include increasing exports, especially agricultural exports, making farmers prosperous, changing crop patterns and enabling 2 crore farmers of the country to declare their land as natural by 2027. He said that Prime Minister Modi has formed a multistate cooperative society which will sell the organic products of more than 2 crore farmers of India practicing natural farming in the global market with a good packaging, reliable branding and high-quality certificates. With this, farmers will directly get about one and a half to two times the price of their organic products compared to what they are currently getting and this will open the way to prosperity for the farmers.
Amit Shah said that NCEL is launched in the cooperative sector with 6 objectives of increasing exports, prospering the farmer, changing the crop pattern, providing global market for organic products, gaining a place for India in the global market for biofuel and strengthening the cooperative sector. With this new beginning, the cooperative will act as a link between the farmers and the global demand for milk products, Isabgol (Psyllium), cumin, ethanol and a variety of organic products.
He said that till now about 1500 cooperatives have become members of NCEL and it is expected that in the coming days every tehsil will join it and become the voice of the farmers.
NCEL, which was registered under the Multi-State Co-operative Societies Act on January 25 this year, has an authorised share capital of Rs 2,000 crore and those cooperative societies from the level of primary to apex interested in exports are eligible to become its members.
The Minister of Cooperation expressed confidence that in the coming days, like IFFCO, KRIBHCO and Amul, National Cooperative Export Limited will also prove to be a very big and successful cooperative venture.
He further said that NCEL will provide necessary finance and information to small societies, offer information about the intricacies involved and necessary precautions required while exporting, and will also work for the production of export friendly materials. Apart from this, NCEL will also do work like setting parameters for brand awareness, quality awareness, necessary infrastructure and standardization of the product for small farmers at a nominal fee.
Shah said that another objective of setting up NCEL is to strengthen cooperatives sector in the country including rural areas and population dependent on agriculture. He said that agricultural products and products from the rural areas contribute 15 percent to the country’s GDP while 60 percent of the total population is dependent on them. He said that National Cooperative Export Limited will also work to strengthen the entire cooperative structure in the country.
The Union Minister of Cooperation said that cooperatives account for 30 per cent of our country’s total food production, 30 per cent of sugar production and about 17 per cent of milk production. He said that about 42 percent of the total finance provided to the farmers of the country is done through cooperatives. He said that the contribution of cooperatives in sugar production is 30 per cent but in the export of sugar is merely one percent; the contribution of cooperatives in milk production is 17 per cent while in the export of milk products, it is less than 2 per cent. This implies that there are immense opportunities in the cooperative sector and to exploit them, a means was needed, to serve as a link between the farmer, the cooperatives and the global market and National Cooperative Export Limited would serve as that link.
Shah also distributed membership certificates to five NCEL members at the symposium.
Speaking on the occasion, Union Commerce Minister Piyush Goyal said the creation of NCEL will give a fillip to exports and contribute to the country’s growth and rural transformation.
The cooperative sector can tap the export potential as there is a growing thrust on India at the global level, he said, adding that the cooperatives should focus on manufacturing quality products for the export market that comply with international standards.
Minister of State for Cooperation BL Verma, Cooperation Secretary Gyanesh Kumar and NCEL Chairman Pankaj Kumar Bansal were also present at the event.
Bansal, who also heads the National Cooperative Development Corporation (NCDC), delivered the welcome address at the event which witnessed participation of over 1000 persons including cooperative members of NCEL and representatives of different cooperative sectors. Among others who attended the event were representatives from National Cooperative Federations, embassies of various countries and central and State Government officials while a large number of cooperative members and stakeholders joined the program on virtual mode.
