NEW DELHI: Taking benefit of brand-new push to the cooperative sector by the Centre, Indias five leading cooperatives- Amul, Nafed, Iffco, Kribhco and National Cooperative Development Corporation (NCDC)- will jointly set up a nationwide export cooperative society with an authorised share capital of Rs 2,000 crore to tap export potential of valuable surplus items, varying from dairy, sugar, spices, handicrafts to minor forest fruit and vegetables, of the sector.
A number of these products have a big demand in many countries but in the lack of an umbrella cooperative society, the export capacity of such items remains extremely untapped.
Sugar is the most significant example.
Though cooperatives add to one third of the countrys overall sugar production, direct exports by the cooperative sugar mills is less than 1% of total sugar exports.
Few cooperatives are currently involved in directly exporting various products (mostly sugar, dairy items and handicrafts), but their share in Indias overall export (worth around $400 billion) is tiny.
Idea of an umbrella body for export of products being produced in the cooperative sector is to increase its share so that its profits benefit members including farmers, said an authorities of the ministry of cooperation.The national cooperative export society, headquartered in New Delhi, will carry out its activities through procurement, storage, processing, marketing, branding, labelling, product packaging, certification, research and advancement.
Itll be involved in trading of all types of items and services produced by cooperatives and associated entities.
Higher exports through this society will increase production of products and services by the cooperatives at various levels.
Itll hence result in more work in the sector.
Processing of products - & improving the services to match international requirements will likewise produce additional employment, stated the official while explaining the reasoning behind the move.Five cooperative societies consisting of Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), which markets milk products under the Amul brand name, will contribute Rs 100 crore each and become promoter members for developing the nationwide level multi-state cooperative society for exports.
The society will raise funds through share capital, admission and other charges, loans, money credits, industrial documents, overdraft of banks, grant-in-aid and subsidies from central and state federal governments, donations/ contributions from members and other companies within India and abroad.
Setting up of the national-level society for export will remain in sync with the federal governments current choice to establish three such multi-state umbrella bodies in the nation with the other 2 being authorized for organic items and seeds.
Amul, Nafed and NCDC will likewise be the promoters of the nationwide level cooperative society for natural products.
Push to the cooperative sector through these steps indicates straight and indirectly befitting Indias 8.54 lakh registered cooperatives having nearly 30 crore members specifically from the marginalised and lower income groups in the backwoods, stated the official.He stated, Setting up a national-level cooperative specifically for organic products will not just assist India acquire better access to the worldwide market but also help the countrys lakhs of farmers who produce fertilizers- and pesticides-free farm crops.
There are around 34 lakh natural farmers in 190 nations with land protection of 797 lakh hectares (1.6% of total farming land of the world) of which Australia has the biggest land protection of 357 lakh hectares.
India ranks fourth with 27 lakh hectares of land under organic farming.
Market size of certified natural item in India deserves Rs 27,000 crore including export of Rs 7,000 crore.