National Cooperative Exports Limited (NCEL) will provide a complete ecosystem for the promotion of exports, mainly of agri commodities, for the benefit of our farmers, Union Minister of Cooperation Amit Shah said in a written reply in the Lok Sabha.

What is the need for promoting exports of agri commodities?

• As cooperatives hold the key to the rural economic transformation of the nation, particularly in agriculture and related sectors with the promise of growth with equity, all efforts should be made to leverage the strengths of cooperatives and transform them into successful and vibrant business enterprises in order to realise the vision of ‘Sahakar se Samriddhi’.

• Agricultural products and products from the rural areas contribute 15 per cent to the country’s GDP, while 60 per cent of the total population is dependent on them.

• The ministry of cooperation has taken initiatives to encourage cooperatives to think globally and act locally in order to leverage their comparative advantage in sectors like  agriculture, horticulture, dairy, poultry, livestock, fisheries, sugar, spices, organic products, fertiliser, handloom, handicraft, textile, tea/coffee, minor forest produce, ayurvedic/herbal medicines, processed food, leather, etc across the globe.

National Cooperative Exports Limited

• National Cooperative Exports Limited (NCEL) was created to function as an umbrella organisation for promoting exports by the entire cooperative sector of the country.

• NCEL was set up with the approval of the Union government and registered under the Multi-State Cooperative Society Act, 2002 on January 25, 2023. 

• It is jointly promoted by some of the leading cooperative societies in the country, namely, Gujarat Cooperative Milk Marketing Federation (GCMMF) popularly known as AMUL Indian Farmers Fertilizer Cooperative Limited (IFFCO), Krishak Bharati Cooperative Limited (KRIBHCO) and National Agricultural Cooperative Marketing Federation of India Limited (NAFED). 

• National Cooperative Development Corporation (NCDC), a statutory corporation under the ministry of cooperation, is one of its promoter members.

• The authorised share capital of NCEL is Rs 2,000 crore. 

• Cooperatives at all levels, from primary to national, that are interested in export activities will be eligible to join NCEL as members.

• The registered office of the NCEL is in New Delhi. 

• By acting as an umbrella organisation, setting up of NCEL will promote exports from the cooperative sector at all levels and across all sectors.

• Till October 2023, about 1,500 cooperatives have become members of NCEL.

• Procurement will be done from the farmer at Minimum Support Price (MSP) and then after the balance sheet of six months is prepared, 50 per cent of the profit in addition to the payment made as per MSP, will go directly to the bank account of the farmer. 

• So far, NCEL has received orders worth Rs 7,000 crore and is negotiating orders worth Rs 15,000 crore.

• NCEL will not only focus on making profits from exports but also handhold farmers to manufacture products for the export market.

The NCEL will assist cooperatives through following activities:

i) Value addition and improving product quality according to international standards to enable cooperative exports to compete in the international market.

ii) Assistance with export certification and logistics.

iii) Obtaining funds, providing technical guidance, and assisting in capacity building and training.

iv) Conducting international/national market research and building a market intelligence system.

v) Providing export-related consultation services.

vi) Establishing a knowledge repository for cooperative exports.

vii) Facilitating cooperative product market positioning through branding, labelling, and packaging support.

Manorama Yearbook app is now available on Google Play Store and iOS App Store