NCEL has received orders worth Rs70 Bn: Coop Minister
FinTech BizNews Service
Mumbai, 24 October, 2023: Union Home Minister and Minister of Cooperation Amit Shah addressed the 'National Symposium on Cooperative Exports' organized by the National Cooperative Exports Limited (NCEL) in New Delhi today. Shah also released the logo, website and brochure of NCEL and distributed membership certificates to NCEL members. Union Minister of Commerce and Industry, Piyush Goyal and Union Minister of State for Cooperation BL Verma were present.
Amit Shah said that our 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. 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. 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. Till now about 1500 cooperatives have become members of NCEL and it is expected that in the coming days every tehsil will join it. Till now NCEL has received orders worth Rs70 Billion and orders worth Rs15,000 crore, are being negotiated.
Shah said that the Modi government strives to increase the GDP while ensuring prosperity for these 60 percent people by providing them employment and the only way to do this is to strengthen cooperative sector. Cooperatives account for 30% of our country's total food production, 30% of sugar production and about 17% of milk production. About 42 percent of the total finance provided to the farmers of the country is done through cooperatives. The contribution of cooperatives in sugar production is 30% but in the export of sugar is merely one percent; the contribution of cooperatives in milk production is 17% while in the export of milk products, it is less than 2%.
Shah said that National Cooperative Export Limited will provide necessary finance and information about the intricacies involved and necessary precautions required while exporting, and will also work for the production of export friendly materials. 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.
Amit Shah said that today the profits from exports do not reach the farmers, but through NCEL at least 50% of the export profits will go directly to the farmers. Procurement will be done from the farmer at the Minimum Support Price (MSP) and then after the balance sheet of 6 months is prepared, 50 percent of the profit in addition to the payment made as per MSP, will go directly to the bank account of the farmer.
Shah further said that in the coming days, efforts will be made to develop it into a complete export ecosystem covering all aspects like procurement, storage, processing, marketing, branding, labelling, packaging, certification and research and development. 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.
Amit Shah said that the Modi government is working towards increasing exports as well as creating a smooth system to deliver its benefits to the farmers. PM 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.
