The 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 on 23 October, 2023. Shah also released the logo, website, and brochure of NCEL and distributed membership certificates to NCEL members.
On this occasion, several dignitaries, including Union Minister of Commerce and Industry, Piyush Goyal, and Union Minister of State for Cooperation, BL Verma, were present.
In his address, Amit Shah emphasized the historical significance of the event, coinciding with Mahanavami, and the groundbreaking vision of “Sahkarita Se Samriddhi” (Prosperity through Cooperation), championed by Prime Minister Narendra Modi. Shah stated that the goal 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.
What is NCEL?
NCEL came into existence after Shah put an emphasis on the need to establish a national-level multi-state cooperative society to function as an umbrella organization for exports by the cooperative sector. NCEL, which was registered under the Multi-State Co-operative Societies Act on 25 January this year, has an authorized 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 member.
Amit Shah stated that NCEL is launched in the cooperative sector with six key objectives: increasing exports, promoting the prosperity of farmers, altering crop patterns, creating a global market for organic products, securing a position for India in the global biofuel market, and strengthening the cooperative sector. With this new beginning, he said, cooperatives will serve as a crucial link between farmers and the global demand for products like milk, Isabgol (Psyllium), cumin, ethanol, and a variety of organic goods.
Steps taken by government for NCEL
According to Shah, a significant step in this direction is the promotion of natural farming, supported by a multistate cooperative society established by Prime Minister Modi. This cooperative will facilitate the sale of organic products from over 2 crore Indian farmers in the global market, promising better prices and increased prosperity for them.
“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,” stated Shah.
Furthermore, Shah highlighted the Biofuel Alliance announced by Prime Minister Modi. With India’s unique capability to cultivate four crops simultaneously, even dedicating one of these crops to biofuel production could meet the nation’s biofuel demands and enable exports.
Shah said that NCEL’s objectives also encompass strengthening the cooperative sector, particularly in rural areas and for those dependent on agriculture. Recognizing that agricultural products and rural goods contribute significantly to India’s GDP, the focus on the cooperative sector is essential for the country’s economic growth. Shah underlined that neglecting 60% of the population, which relies on this sector, is not conducive to economic success.
1,500 cooperatives have become members of NCEL
Shah added that, to date, approximately 1,500 cooperatives have become members of NCEL, and there is an expectation that every tehsil will join in the coming days, becoming the collective voice of farmers. Orders worth Rs 7,000 crore have already been received, with negotiations underway for orders worth Rs 15,000 crore. Cooperation Minister Amit Shah also 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.
The Union Minister of Cooperation emphasized that cooperatives play a significant role in our country’s agricultural landscape. They contribute to 30% of the total food production, 30% of sugar production, and approximately 17% of milk production. However, he pointed out a disparity in exports, noting that while cooperatives are responsible for 30% of sugar production, they account for only one percent of sugar exports. Similarly, in the case of milk production, their contribution is 17%, but in the export of milk products, it remains below 2%.
“This observation highlights the immense untapped potential in the cooperative sector. To harness these opportunities, there was a pressing need for a means to bridge the gap between farmers, cooperatives, and the global market. National Cooperative Export Limited (NCEL) serves as the vital link to unlock this potential,” he said.
NCEL is committed to providing essential financial support and information to small societies. It will offer guidance on the intricacies of exporting and the necessary precautions to be taken.
Furthermore, NCEL will focus on the production of export-friendly materials. Additionally, NCEL will undertake activities such as setting parameters for brand awareness, quality standards, necessary infrastructure, and product standardization for small farmers, all at a nominal fee.
NCEL will benefit farmers directly
Amit Shah emphasized that, currently, the profits from exports do not directly benefit farmers. However, through the National Cooperative Export Limited (NCEL), at least 50% of the export profits will be channeled directly to farmers. He explained that procurement will be conducted from farmers at the Minimum Support Price (MSP), and after a 6-month balance sheet is prepared, 50% of the profits, in addition to the MSP payment, will be deposited directly into farmers’ bank accounts.
Shah also stressed that a critical facet of NCEL is educating farmers about export-oriented mindset, altering crop patterns, and enhancing awareness of branding, packaging, and marketing. “The success of this initiative hinges on building a comprehensive system to support these objectives,” he added.
Shah stated that NCEL will evolve into an organization representing the entire cooperative sector. Efforts will be made to develop it into a complete export ecosystem, encompassing all aspects such as procurement, storage, processing, marketing, branding, labeling, packaging, certification, and research and development.
“NCEL will also work on establishing connections with the Ministry of Commerce and Industry, the Ministry of External Affairs, and our embassies abroad using a Whole-of-Government Approach for market linkages. Furthermore, a plan will be devised by uniting Farmers Producers Organizations (FPOs) and Primary Agriculture Cooperative Credit Societies (PACS) to ensure that production aligns with market demand,” he added.
Shah further highlighted that the Modi government is actively working on increasing exports while simultaneously creating a streamlined system to deliver its benefits to farmers. To this end, Prime Minister Modi has initiated the formation of three multi-state cooperative societies: one for national-level seed production, one for the certification and branding of organic products, and a third cooperative specifically focused on exports.
