Indian Economy News

IFFCO, Amul, and three others to promote exports of the new co-op society

  • IBEF
  • January 20, 2023

The Centre’s new multi-state co-operative society for exporting products of co-operatives will have an authorised share capital of US$ 246 million (Rs. 2,000 crores) and an initial paid-up capital of US$ 61.5 million (Rs. 500 crores) contributed by five such organisations. Those organisations 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 Cabinet Committee on Economic Affairs (CCEA) has approved a proposal to establish three national-level multi-state co-operative societies in order to promote organic products, seeds, and exports. The new co-operative organic society would be headquartered in Delhi and will be registered under the Multi-State Cooperative Societies (MSMC) Act, 2022. 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 the export of the surpluses of the co-operative sector, search for markets, promote products made by co-operatives 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 and will also provide all the back-end support, which includes procurement, storage, processing, marketing, etc. According to some sources, the shipments are expected to start in this financial year only and it would take about 2-3 years for this export society to become a big export house.

There are about 854,000 registered co-operatives in the country and have more than 290 million members. They contribute substantially to various sectors and account for around 28.8% of fertilizer production, 35% of fertilizer distribution, 30.6% of sugar production, and 17.5% in the procurement of marketable surplus milk. The co-operatives have a presence in almost all the sectors like agriculture, horticulture, fisheries, livestock, handloom, etc.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.