Cabinet gives nod to 3 new co-ops in agriculture sector
The multi-state seeds society will act as an “apex organisation for production, procurement, processing, branding, labelling packaging, storage, marketing and distribution of quality seeds,” an official statement said. It will also undertake strategic research and development.
The Union Cabinet led by Prime Minister Narendra Modi on Wednesday authorised the establishment of three multi-state cooperatives in the agriculture sector to boost capital formation and scale up rural businesses.
Separately, the Union government named the country’s subsidised foodgrain programme under the National Food Security Act 2013 as Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY).
The new multistate cooperative societies, which are businesses collectively owned and run by members who share profits, will focus on seed availability to farmers, organic farming and exports, Union minister Bhupender Yadav said, briefing reporters on the Cabinet’s decisions.
“The proposed society will help to increase the seed replacement rate, varietal replacement rate, ensuring the role of farmers in quality seed cultivation and seed variety trials, production and distribution of certified seeds with a single brand name, by utilising the network of all levels of cooperatives,” an official statement said.
India has nearly 900,000 cooperatives, the most globally. They account for nearly 20% of the country’s gross domestic product (GDP).
Dairy brand Amul, flatbread manufacturer Lijjat Papad and fertiliser chain IFFCO are some of the India’s biggest cooperative enterprises, while there are a large number of banks and lending institutions based on the model.
The Centre is aiming at an expansion of the cooperative sector to spur job creation and will facilitate setting up of new multi-state cooperatives, Union home and cooperation minister Amit Shah had announced during a Centre-state conference on the subject on Sept 8 2022.
Under the Constitution’s division of responsibilities, cooperatives fall squarely in the domain of state governments. The Centre however has a say in multi-state cooperatives, which function at a national level.
The multi-state seeds society will act as an “apex organisation for production, procurement, processing, branding, labelling packaging, storage, marketing and distribution of quality seeds,” an official statement said. It will also undertake strategic research and development.
The Cabinet also approved setting up of a national-level multi-state cooperative organic society under Multi State Cooperative Societies (MSCS) Act, 2002. This society will act as an umbrella organization for aggregation, procurement, branding and marketing of organic products with support from several Union ministries.
A third multi-state cooperative export society under the Multi State Cooperative Societies (MSCS) Act, 2002 will be set up to promote exports from the country.
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