Iffco, Amul, three others to promote exports of new co-op society

The new cooperative will also provide proper institutional support for aggregation of exportable surplus, working capital, logistics, technical know-how and training

The Centre’s new multi-state cooperative society for exporting products of cooperatives will have an authorised share capital of Rs 2,000 crore and an initial paid-up capital of Rs 500 crore contributed by five such organisations.

These are the Indian Farmers Fertiliser Cooperative (Iffco), Krishak Bharti Cooperative (Kribhco), National Agricultural Cooperative Marketing Federation (Nafed), Gujarat Cooperative Milk Marketing Federation (GCMMF), and National Cooperative Development Corporation (NCDC).

The new cooperative for promoting exports is part of the three such organisations being formed. Sources said the new cooperative would be headquartered in Delhi and any cooperative in India, whether governed by state laws or Central legislation, could become a member of the body to export its products and find new markets.

The society will focus on exporting the surpluses of the cooperative sector, scout for markets, promote products made by cooperatives in the global arena, and help in increasing their demand globally.

The body will provide institutional support for aggregating an exportable surplus, working capital, logistics, technical know-how, and training.

It will provide all back-end support, which includes procurement, storage, processing, marketing, branding, labelling, packaging, certification, research and development and trading to members for boosting the export potential of their products.

Last week, the Cabinet Committee on Economic Affairs (CCEA) approved a proposal to establish three national-level multi-state cooperative societies to promote organic products, seeds, and exports.

A national-level cooperative organic society, cooperative seed society and cooperative export society will be registered under the Multi-State Cooperative Societies (MSCS) Act, 2002.

Sources said shipments were likely to start this financial year itself, and it would take two-three years for this export society to become a big export house.

Cooperatives contribute substantially in various sectors. They account for 28.80 per cent of fertiliser production, 35 per cent of fertiliser distribution, 30.60 per cent of sugar production, and 17.50 per cent in the procurement of marketable surplus milk in the national economy.

Many of these products have a huge demand in many countries, but in the absence of an umbrella cooperative society, the export potential of cooperative products/services remains hugely untapped, they said.

The contribution of cooperatives to India’s export is minuscule, sources said.

There are 854,000 registered cooperatives in the country, having more than 290 million members, especially from marginalised and lower-income groups in rural areas.

Cooperatives have a presence in almost all sectors such as agriculture (food grains, pulses, oilseeds, etc.), horticulture (fruit, vegetables, flowers, aromatic products, etc.), dairy, poultry, livestock, fisheries, sugar, spices, organic products, fertiliser, handloom, handicraft, textile, tea/coffee, minor forest produce, Ayurveda or herbal medicines, processed food and leather.