Lok Sabha Question No. 1851 (UNSTARRED), answered on 2020-03-03
Subject: Role of Cooperatives in Agricultural Sector
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Gautham Sigamani Pon, Supriya Sadanand Sule, Amol Ramsing Kolhe, Shriniwas Dadasaheb Patil, Manickam Tagore B, Kuldeep Rai Sharma

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO.1851

TO BE ANSWERED ON THE 3 RD  MARCH, 2020

## ROLE OF COOPERATIVES IN AGRICULTURAL SECTOR

1851. SHRI GAUTAM SIGAMAANI PON: SHRIMATI SUPRIYA SULE: DR. AMOL RAMSING KOLHE: SHRI SHRINIWAS PATIL: SHRI MANICKAM TAGORE B.: SHRI KULDEEP RAI SHARMA:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  village  cooperative  societies  play  an  important  role  in  the  development  of agricultural sector, if so, the details thereof;
- (b) whether the Government proposes to strengthen the role of cooperatives in agricultural sector, if so, the steps taken by the Government in this regard;
- (c) whether any financial aid is extended to cooperatives for their role in the development of agricultural sector, if so, the details thereof;
- (d) the details of the performance of cooperatives in organic farming, milk production, poultry farming and fisheries in different States of the country during each of the last three years;
- (e) whether lack of help from cooperative marketing societies has affected farmers in getting remunerative prices for their products, if so, the details thereof and the corrective steps taken by the Government in this regard; and
- (f) the other steps taken by the Government to strengthen village cooperative societies so as to provide strategic inputs for the agricultural sector?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a): Yes,  Sir.    The  role  of  cooperatives  is  important  in  agriculture  sector  as  it  supplies agricultural credit and inputs and has the potential to deliver goods and services in vital areas to supplement efforts of the State and private sectors. The village Cooperative Societies provide strategic inputs for the agricultural sector. Cooperative Marketing Societies help the farmer to get remunerative prices, procurement of commodities as an agent of Government of India and Cooperative Processing units help in value additions to the raw products etc. Cooperatives are also involved in programmes like fodder development, conservation and genetic up-gradation of indigenous breeds of Livestock etc.  The cooperatives are also helping weaker sections of the societies for uplifting in their economy through dairy, poultry & fishery cooperatives.

(b): Yes, Sir. Central Government, through Central Sector Integrated Scheme on Agricultural Cooperation, has been promoting the role of cooperatives in the agriculture sector. Assistance is provided for providing training to farmers who are members and employees of various types of  cooperative  societies.    Besides,  assistance  is  provided  through  the  National  Cooperative Development  Corporation  (NCDC)  for  promoting,  developing  and  financing  post-harvest activities  through  cooperatives  in  agriculture  sector.    These  comprise,  inter  alia,  marketing, storage and processing of agricultural produce besides supply of agricultural inputs. Subsidy to the  tune  of  15%  to  25%  is  provided  to  cooperatives  depending  on  the  category  of  state  in addition  to  term  loan.  Government  also  provides  Guarantee  for  procurement  operations  of NAFED, which are undertaken through primary level and other cooperatives.

(c): Yes,  Sir.  Ministry  of  Agriculture  and  Farmers  Welfare  implements  Central  Sector Integrated  Scheme  on  Agricultural  Cooperation  (CSISAC)  for  cooperatives  through  National Cooperative Development Corporation (NCDC), a Statutory Corporation under this Ministry, for agricultural and allied activities.

Under the  CSISAC scheme subsidy is provided  by  the Government of  India  and  loan component is provided by NCDC from its own resources. Financial assistance provided under CSISAC scheme during last 3 years is enclosed at Annexure A.

(d): Such information is not maintained by this Department.

(e): No, Sir. In order to help the farmers in getting remunerative prices for their produce with a view  to  encourage  higher  investment  and  also  to  increase  production,  Government  of  India declares Minimum Support Price (MSP) for 25 notified agricultural commodities for each Kharif and Rabi crop season. NAFED is one of the Central Nodal Agencies for 16 notified agricultural commodities of Oilseeds, Pulses and Cotton under Price Support Scheme (PSS) and continues to  be  the  sole  Central  Nodal  Agency  for  procurement  of  Milling  and  Ball  Copra  under  Price Support Scheme. Apart from providing support to the farmers by way of implementing various schemes of Central Government/ State Governments such as PSS, PSF, MIS etc., NAFED also procures  various agricultural commodities  directly  from farmers  at mandi  level  through cooperative network in its outright/commercial account.

Further,  under  the  Central  Sector  Scheme  as  Integrated  Scheme  for  Agricultural Marketing  (ISAM),  grants/subsidy  are  being  provided  to  promote  creation  of  agricultural marketing  infrastructure  to  State,  cooperative  and  private  sector  investments,  to  promote creation of scientific storage capacity, to promote pledge financing to increase farmers' income, to  promote  Integrated  Value  Chains  to  provide  vertical  integration  of  farmers  with  primary processors  and  to  support  framing  of  grade  standards  and  quality  certification  of  agricultural commodities to help farmers get better and remunerative prices for their graded produce.

In  addition,  National  Agriculture  Market (eNAM)  is a  pan-India  electronic trading  portal which networks the existing APMC mandis to create a unified national market for agricultural commodities has been started under the aegis of Ministry of Agriculture and Farmers' Welfare, Government  of  India  to promote  uniformity in agriculture marketing  by  streamlining of procedures  across  the  integrated  markets,  removing  information  asymmetry  between  buyers and sellers and promoting real time price discovery based on actual demand and supply.

Besides above, NCDC also provides financial assistance under its schemes to marketing cooperatives  for  the  activities  such  as  creating  infrastructure  facilities,  undertaking  business operations, working capital assistance for MSP operations, assistance for purchase of transport vehicles and establishment of customer hiring centers, etc.

During  the  year  2018-19  under  the  CSISAC  Scheme,  NCDC  has  released  Rs.115.61 crore with a cumulative assistance of Rs.828.01 crore till 31.3.2019 and for same period NCDC sanctioned working capital assistance of Rs.18875 crore and released Rs.17914 crore.

(f): It  has  been  an  endeavour  of  all  the  governments  to  take  necessary  steps  to  make cooperative viable and more professional to meet with the emerging competitions. In the recent past  Primary  Agricultural  Credit  Societies  (PACS)  were  allowed  to  diversify  their  business activities  under  the  CSISAC  Scheme.  The  Under  Developed  State  (UDS)  Cooperative Education field projects (41 in numbers), the sub-component of CSISAC, National Cooperative Union of India (NCUI) is providing training and education programme especially for members of the  societies,  backward  classes,  women,  SC/ST  and  weaker  sections  of  the  societies  to sensitize the cooperative societies.

Besides, cumulatively, as on 31.03.2019, NCDC has sanctioned and released financial assistance  of  Rs.2280.83  crore  and  Rs.1610.98  crore,  respectively  for  the  development  of cooperative societies exclusively promoted by women.

Annexure-A State/UT wise subsidy released under CSISAC Scheme during last 3 years

|       |                       | Rs. in lakh     | Rs. in lakh            | Rs. in lakh    |
|-------|-----------------------|-----------------|------------------------|----------------|
| S.No. | Name of the State     | Subsidy 2016-17 | Released under 2017-18 | CSISAC 2018-19 |
| 1     | A & N ISLANDS         | 0.00            | 19.71                  | 0.00           |
| 2     | ANDHRA PRADESH        | 1176.50         | 2104.73                | 433.68         |
| 3     | ARUNACHAL PRADESH     | 361.99          | 466.07                 | 113.75         |
| 4     | ASSAM                 | 3.98            | 109.42                 | 292.11         |
| 5     | BIHAR                 | 887.22          | 3051.87                | 1529.08        |
| 6     | CHATTISGARH           | 9.29            | 31.45                  | 3.81           |
|       | DELHI                 | 0.00            | 0.00                   | 0.00           |
| 7     | GOA                   | 4.12            | 3.63                   | 0.00           |
| 8     | GUJARAT               | 902.85          | 547.41                 | 2164.23        |
| 9     | HARYANA               | 70.10           | 82.63                  | 11.68          |
| 10    | HIMACHAL PRADESH      | 1060.58         | 533.19                 | 1738.90        |
| 11    | J&K                   | 0.00            | 159.72                 | 0.00           |
| 12    | JHARKHAND             | 114.96          | 162.27                 | 82.75          |
| 13    | KARNATAKA             | 66.09           | 262.38                 | 70.50          |
| 14    | KERALA                | 58.38           | 1083.62                | 175.66         |
| 15    | MADHYA PRADESH        | 609.30          | 419.68                 | 876.38         |
| 16    | MAHARASHTRA           | 377.66          | 564.01                 | 110.09         |
| 17    | MANIPUR               | 0.00            | 0.00                   | 0.00           |
| 18    | MEGHALAYA             | 0.57            | 0.00                   | 1347.00        |
| 19    | MIZORAM               | 439.79          | 315.06                 | 0.00           |
| 20    | NAGALAND              | 112.66          | 844.24                 | 399.04         |
| 21    | NATIONAL FEDN. / MSCS | 0.00            | 0.00                   | 0.00           |
| 22    | ODISHA                | 130.30          | 212.04                 | 32.07          |
| 23    | OTHERS                | 34.65           | 25.76                  | 19.56          |
| 24    | PUNJAB                | 68.59           | 0.00                   | 411.41         |
| 25    | RAJASTHAN             | 662.17          | 2131.66                | 647.43         |
| 26    | SIKKIM                | 0.00            | 0.00                   | 0.00           |
| 27    | TAMIL NADU            | 268.42          | 1486.95                | 0.00           |
| 28    | TELANGANA             | 1941.31         | 3688.46                | 1148.29        |
| 29    | TRIPURA               | 51.00           | 0.00                   | 0.00           |
| 30    | UTTAR PRADESH         | 1528.71         | 146.84                 | 236.50         |
| 31    | UTTARAKHAND           | 144.79          | 81.96                  | 83.32          |
| 32    | WEST BENGAL           | 98.71           | 754.35                 | 632.13         |
|       | Total                 | 11184.67        | 19289.10               | 12559.36       |

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