Note4Students

From UPSC perspective, the following things are important :

Prelims level: National Export Co-operative Society

Mains level: Not Much

The first consignment expected to be exported by the first-ever National Export Co-operative Society.

Why in news?

The Union Cabinet on January 11 approved the setting up Multi-State Seed Society, Multi-State Organic Society and Multi State Export Society.

What is National Export Co-operative Society (NECS)?

The society will have an authorised share capital of ₹2,000 crore with the area of operation all over the country.
It will be registered under the Multi-State Cooperative Societies (MSCS) Act, 2002.
It will have its registered office in Delhi.
The Society’s registration will be complete in the next few days and the first consignment will be exported in three months.
It will work as an export house for handicrafts, handlooms, khadi and other products, ensuring enhancement of income of the cooperative member entrepreneurs.

Leading cooperatives like IFFCO, KRIBHCO, NAFED, Amul and National Cooperative Development Corporation (NCDC) will be the promoters of the Society.
They will contribute ₹100 crore each.

The Society will be different from the Export Promotion Council under the Ministry of Commerce.
This Society will provide end-to-end services to the cooperatives.
It will open foreign bank accounts and complete all the formalities, including necessary permissions for exporting a product.
The dividends will be shared with the manufacturer instantly and without any brokerage fee.
The Society will hire consultants in foreign countries who will help expand its footprint across continents.

Cooperatives contribute 28.80% in fertilizer production, 35% in fertilizer distribution, 30.60% in sugar production and 17.50% in milk in the national economy.
However, their contribution to exports is negligible.
Society will benefit the smallest of farmer or artisan who has a good product but does not have access to the right platform.
Through this Society, they will get access to international market and good returns too.
Once a product has been tested for international standards, the packaging and export will be done by the Society.