Lok Sabha Question No. 2251 (UNSTARRED), answered on 2023-03-14
Subject: Strengthening of Cooperative Schemes in Agriculture Sector
Ministry: COOPERATION
Asked by: Nama Nageswara Rao

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2251 TO BE ANSWERED ON 14/03/2023

## Strengthening of Cooperative Schemes in Agriculture Sector

## 2251. SHRI NAMA NAGESWARA RAO:

Will the Minister of COOPERATION (सहकाįरता मंũी) be pleased to state:

- (a) whether the Government has any plans to strengthen the existing cooperative schemes in agriculture sector and if so, the details thereof;
- (b)  whether  the  Union  Government  is  also  contemplating  to  create  new  cooperative  schemes  for utilization of scientific and technological advanced methods in agriculture;
- (c) if so, the details thereof; and

(d) the details of the funds spent on these schemes by the Union Government during the last five years, State/UT-wise?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRI AMIT SHAH)

(a)  to  (c):  In  order  to  realize  the  vision  from  cooperation  to  prosperity,  strengthening  of  co-operative movement  in  the  country  and  deepening  its  reach  up  to  the  grassroots,  promotion  of  cooperative ecosystem  in  various  sectors  including  the  agriculture  sector  across  the  country,  the  Ministry  of Cooperation has taken various steps such as:

1. Computerization of PACS: Process to onboard 63,000 functional PACS on an ERP based common national software with an outlay of ₹2,516 Crore started.
2. Model byelaws for PACS: Model byelaws prepared and circulated for their adoption as per the respective State Cooperatives Act to enable PACS to undertake more than 25 business activities like dairy, fishery, setting up of godowns, LPG/ Petrol/ Green energy distribution agency, banking correspondents, CSC, etc.
3. PACS  as  Common  Service  Centres  (CSC):  MoU  signed  between  Ministry  of  Cooperation, Ministry  of  Electronics  and  Information  Technology,  NABARD  and  CSC  -  SPV  to  facilitate functioning of PACS as CSCs to improve their viability, provide e-services at village level and generate employment.
4. National  Cooperative  Database:  Preparation  of  an  authentic  and  updated  data  repository  of cooperatives in the country started to facilitate stakeholders in policy making and implementation.
5. Establishment  of  Multi-Purpose  PACS,  Dairy  and  Fisheries  Cooperative  Societies  in  every Panchayat/Village:  A  plan  has  been  approved  by  the  Government  to  set  up  2  lakh  new  multipurpose PACS, dairy and fisheries cooperatives covering every Panchayat/Village in the next five years by taking advantage of various existing schemes.
6. National Cooperative Policy: A National level committee comprising of experts and stakeholders drawn from all over the Country constituted to formulate the New Cooperation Policy to create an enabling ecosystem to realize the vision of 'Sahakar-se-Samriddhi'.
7. Amendment  of  MSCS  Act,  2002:  Bill  introduced  in  the  Parliament  to  amend  the  centrally administered  MSCS  Act,  2002  to  incorporate  provisions  of  97 th Constitutional  Amendment, strengthen governance, enhance transparency, increase accountability and reform electoral process in the Multi State Cooperative Societies.
8. National  Cooperative  Development  Corporation:  New  schemes  for  cooperatives  launched  by NCDC  in  various  sectors  such  as  'Swayamshakti  Sahkar'  for  SHG;  'Deerghavadhi  Krishak Sahkar' for long term agricultural credit; 'Dairy Sahkar' for dairy and 'Neel Sahkar' for fisheries. Total financial assistance of Rs. 34,221 Crores disbursed in FY 2021-22.
9. Member Lending Institutions in Credit Guarantee Fund Trust: Non-scheduled UCBs, StCBs and DCCBs notified as MLIs in CGTMSE Scheme to increase share of cooperatives in lending.
10. Cooperatives as 'buyers' on GeM portal: Cooperatives permitted to register as 'buyer' on GeM, enabling them to procure goods and services from nearly 40 lakh vendors to facilitate economical purchases and greater transparency.
11. Reduction  in  surcharge  on  cooperative  societies:  Surcharge  reduced  from  12%  to  7%  for  cooperative societies having income between Rs. 1 to 10 Cr.
12. Reduction in Minimum Alternate Tax: MAT reduced for cooperatives from 18.5% to 15%.
13. Relief  under  Section  269ST  of  IT  Act:  A  clarification  has  been  issued  to  remove  difficulties  in cash transactions by cooperatives under Section 269ST of IT Act.
14. Lowering tax  rate  for  new  cooperatives:  Announcement  made  in  the  Union  Budget  2023-24  to charge flat lower tax rate of 15%, compared with current rate of upto 30% plus surcharge, for new cooperatives commencing manufacturing activities till March 31, 2024.
15. Increase in limit of deposits and loans in cash by PACS and PCARDBs:  Announcement made in the Union Budget 2023-24 to increase limit from Rs. 20,000 to Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs.
16. Increase  in  limit  for  TDS:  Announcement  made  in  the  Union  Budget  2023-24  to  increase  cash withdrawal  limit  for  cooperatives  from  Rs.  1  Crore  to  Rs.  3  Crore,  per  annum,  without  being subjected to TDS.
17. Relief  to  Sugar  Cooperative  Mills:  Sugar  cooperative  mills  not  to  be  subjected  to  additional income tax  for  paying  higher  sugarcane  prices  to  farmers  upto  Fair  and  Remunerative  or  State Advised Price.
18. Resolution  of  chronic  pending  issues  of  Sugar  Cooperative  Mills:  Announcement  made  in  the Union  Budget  2023-24  to  allow  sugar  cooperatives  to  claim  as  expenditure  their  payments  to sugarcane farmers for the period prior to assessment year 2016-17, giving a relief of nearly Rs. 10,000 crores.
19. New National Multi-State Cooperative Seed Society: New apex national multi-state cooperative seed society being established under the MSCS Act, 2002 as umbrella organization for quality seed cultivation, production and distribution under a single brand.
20. New National Multi-State Cooperative Organic Society: New apex national multi-state cooperative organic society being established under the MSCS Act, 2002 as umbrella organization to produce, distribute and market certified and authentic organic products.
21. New National Multi-State Cooperative Export Society: New apex national multi-state cooperative export society being established under the MSCS Act, 2002 as umbrella organization to give thrust to exports from cooperative sector.
22. (d): Ministry  of  Cooperation  is  implementing  a  Central  Sector  Integrated  Scheme  on  Agricultural Cooperation  through  National  Cooperative  Development  Corporation  (NCDC)  till  March,  2023.  The CSISAC Scheme has following components: -
- i. Marketing,  Processing,  Storage,  Consumer,  Weaker  Section  Programmes  of  Cooperatives  and Technical &  Promotional (T&P) Cell Scheme for strengthening Management of State Cooperative Federations, etc.
- ii. Assistance for cotton development including ginning and pressing and establishment of new and modernization/ expansion/rehabilitation of existing cooperative spinning mills.
- iii. Integrated Cooperative Development Projects (ICDP) in selected districts

The details of the funds spent under the CSISAC scheme during the last five years is annexed at Annexure.

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## Disbursement under CSISAC

| States Name       | 2017-18   | 2018-19   | 2019-2020   | 2020-2021   | 2021-2022   | 2022-2023 As on 02.03.2023   |
|-------------------|-----------|-----------|-------------|-------------|-------------|------------------------------|
| A &N ISLANDS      | 20        | -         | 70          | -           | -           | -                            |
| ANDHRA PRADESH    | 2105      | 434       | 531         | 2893        | 257         | 2476                         |
| ARUNACHAL PRADESH | 466       | 114       | 169         | 144         | -           | -                            |
| ASSAM             | 109       | 292       | 398         | 155         | 92          | 115                          |
| BIHAR             | 3052      | 1529      | 913         | 2232        | 5686        | 4082                         |
| CHATTISGARH       | 31        | 4         | 35          | -           | 37          | 12                           |
| GOA               | 4         | -         | 2           | 4           | -           | -                            |
| GUJARAT           | 547       | 2164      | 1003        | 585         | 30          | -                            |
| HARYANA           | 83        | 12        | 16          | 9           | 211         | 97                           |
| HIMACHAL PRADESH  | 533       | 1739      | 242         | 645         | 201         | 50                           |
| JHARKHAND         | 162       | 83        | 483         | 70          | 92          | 257                          |
| KARNATAKA         | 262       | 71        | 252         | 34          | -           | -                            |
| KERALA            | 1084      | 176       | 399         | 798         | 865         | 1319                         |
| MADHYA PRADESH    | 420       | 876       | 521         | 630         | 530         | 446                          |
| MAHARASHTRA       | 564       | 110       | 1037        | 5529        | 191         | 248                          |
| MEGHALAYA         | -         | 1347      | -           | 1346        | -           | -                            |
| MIZORAM           | 315       | -         | -           | 61          | 23          | 69                           |
| NAGALAND          | 844       | 399       | 388         | 179         | -           | 20                           |
| ODISHA            | 212       | 32        | 37          | 16          | 13          | -                            |
| RAJASTHAN         | 2132      | 647       | 803         | 2572        | 717         | 65                           |
| TAMIL NADU        | 1487      | -         | 301         | 460         | 376         | 122                          |
| TELANGANA         | 3688      | 1148      | 1513        | 5477        | 10138       | 15191                        |
| TRIPURA           | -         | -         | -           | 201         | 90          | 345                          |
| UTTAR PRADESH     | 147       | 237       | 440         | 880         | 1146        | 584                          |
| UTTARAKHAND       | 82        | 83        | 803         | 1712        | 683         | -                            |
| WEST BENGAL       | 754       | 632       | 1243        | 3683        | 4356        | 1578                         |
| OTHERS            | 185       | 431       | 107         | 27          | 68          | -                            |
| Total             | 19103     | 12129     | 11599       | 30315       | 25734       | 27076                        |

## Annexure-I

(Rs. Lakhs)