Cooperation Minister Amit Shah on Monday said the newly established National Cooperative for Exports Ltd (NCEL) has bagged orders worth Rs 7,000 crore so far and the export body will share at least 50 per cent profit with member farmers over and above the support price.
NCEL, which was established on January 25, is negotiating orders worth Rs 15,000 crore, he said after launching a logo, website and brochure of the cooperative export body.
NCEL will help cooperative societies tap the global export market and handhold them to produce and manufacture products that comply with international standards, he added.
There are about 8 lakh cooperative societies in the country with over 29 crore members.
"Currently, NCEL is operating from a temporary office. We are recruiting staffers. So far, we (NCEL) have received orders of Rs 7,000 crore and negotiating orders worth Rs 15,000 crore," Shah said while addressing a national symposium here.
NCEL will purchase commodities to be exported from member farmers of cooperatives at a minimum support price (MSP), the Union minister said.
The NCEL earns at least 50 per cent of the total profit and it will be transferred directly into the bank accounts of member farmers, he said, adding that the profit will be over and above the MSP.
"Be it wheat, sugar or milk products, farmers do not get anything at present. NCEL will share at least 50 per cent of the profit with farmers," he said.
NCEL will not only focus on making profits from exports but also handhold farmers to manufacture products for the export market.
It will help in branding, packaging, creating awareness on quality, infrastructure, setting up parameters for standardisation of products at minimal charges, he said.
Expressing concerns over the poor presence of cooperatives in the export market, Shah said currently, the cooperative sector's contribution in exports is very low when compared to its contribution in the overall production of some commodities like cotton, sugar, and milk.
Although cooperative societies contribute 30 per cent in sugar production, but in exports it is only 1 per cent.
Similarly, their share in milk production is 17 per cent but in exports it is below 2 per cent, he said, adding that there is a huge opportunity for exports.
NCEL has been established to bridge this gap and help cooperative societies increase its share in exports, thereby boosting rural income, he added.
Shah asserted that there is a huge global demand for Indian-produced items like milk products, masala, ethanol, zeera, isabgul, and organic products.
He said NCEL will give new strength to the cooperative sector working towards achieving six objectives -- increasing exports, raising farmers/rural income, changing crop pattern, tapping global market for organic produce, biofuel as well as strengthening the cooperative sector.
The export body will help cooperative societies change the pattern to grow crops that are in demand in the global market.
"It will also support in export of organic produce," he said.
"I am confident that NCEL will emerge as a successful venture like IFFCO and Amul," Shah said.
The minister, who also distributed NCEL membership certificates to five cooperatives, said the cooperative export body already has 1,500 members and the aim is to ensure at least one cooperative body at the tehsil-level is associated with it.
Speaking on the occasion, Union Commerce Minister Piyush Goyal said the creation of NCEL will give a fillip to exports and contribute to the country's growth and rural transformation.
The cooperative sector can tap the export potential as there is a growing thrust on India at the global level, he said.
The minister added the cooperatives should focus on manufacturing quality products for the export market that comply with international standards.
Minister of State for Cooperation B L Verma, Cooperation Secretary Gyanesh Kumar, and NCEL Chief Pankaj Kumar Bansal were also present at the event.
NCEL has an authorised share capital of Rs 2,000 crore and cooperative societies from primary to the apex level that are interested in exports are eligible to become its members.
It aims to focus on exporting the surplus available in the Indian cooperative sector by accessing wider markets beyond the geographical contours of the country.