National Export Co-operative Society making headlines

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.
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