The first consignment of the first-ever National Export Co-operative Society is expected to be exported.
Why is this in the news?
- The Union Cabinet on January 11 approved the setting up Multi-State Seed Society, Multi-State Organic Society and Multi State Export Society.
National Export Cooperative Society (NECS)
- The society will have a 2,000 crore authorised share capital and will operate throughout the country.
- The Multi-State Cooperative Societies (MSCS) Act of 2002 will be used to register it.
- Its registered office will be in Delhi.
- The registration of the Society will be completed in the coming days, and the first consignment will be exported in three months.
- It will function as an export house for handicrafts, handlooms, khadi, and other products, thereby increasing the income of cooperative member entrepreneurs.
Funding of NECS
- The Society will be promoted by leading cooperatives such as IFFCO, KRIBHCO, NAFED, Amul, and the National Cooperative Development Corporation (NCDC).
- They will each contribute Rs. 100 crore.
The NECS System in Action
- The Society will be distinct from the Ministry of Commerce’s Export Promotion Council.
- This Society will provide comprehensive services to cooperatives.
- It will open foreign bank accounts and complete all necessary formalities, including export permissions.
- The manufacturer will receive the dividends immediately and without any brokerage fees.
- The Society will hire consultants in foreign countries to help it expand across continents.
Why are cooperatives required for export promotion?
- Cooperatives contribute 28.8 percent of fertiliser production, 35% of fertiliser distribution, 30.6 percent of sugar production, and 17.5 percent of milk production to the national economy.
- Their contribution to exports, however, is negligible.
- The smallest farmer or artisan with a good product but no access to the right platform will benefit society.
- They will gain access to the international market as well as good returns through this Society.
- The Society will package and export a product after it has been tested for international standards.
Source: https://www.thehindu.com/news/national/national-export-co-operative-society-to-export-farm-non-farming-products-in-three-months/article66408776.ece