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3 new cooperatives to help boost exports, seed availability.
Jan 23, 2023
The Centre's push to reinvent cooperatives with the Union cabinet clearing proposals for setting up three cooperatives at the national level will help improve exports and availability of quality seeds to farmers, and enhance footprint of organic products in India and outside.
'Many products produced by cooperatives have a huge demand in many countries, but in the absence of an umbrella cooperative society, the export potential of cooperative services remains hugely untapped,' a senior government official said.
While national cooperatives for exports and seeds will be set up in the national capital, the cooperative for organic products will be headquartered at Anand in Gujarat. The cooperation ministry has roped in the external affairs ministry and commerce department to provide support and share studies on demands in foreign countries to help boost cooperatives' exports.
While cooperatives contribute significantly to production in some sectors, their share in exports is miniscule.
For example, cooperatives account for 30.6% of the country's total sugar production, but direct exports by cooperative sugar mills is less than 1% of the total sugar exports, the cooperatives ministry said in a note.
It further noted that cooperatives contribute substantially to various sectors such as 28.8% in fertiliser production, 35% in fertiliser distribution, and 17.5% in procurement of marketable surplus of milk in the national economy. However, many of them remain underutilised due to lack of infrastructure. 'The export society will focus on exporting the surpluses available in the country in the cooperative sector by removing such inadequacies,' a second official said. 'This will enable the farmers to access wider markets.'
As per official data, there are an estimated 854,000 registered cooperative societies in India with more than 290 million members, particularly from the marginalised and lower income groups in rural areas. For organic products, India accounts for a meagre 2.7% of world organic market despite having the third in the world after Australia and Argentina when it comes to area of land under organic cultivation at 2.7 million hectares.
Out of total 3.4 million organic producing farmers in the world, 1.6 million are from India, while certified Indian organic product retail market is estimated to be Rs 27,000 crore which includes export of Rs 7,000 crore, as per the cooperation ministry.
economictimes.indiatimes.com
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