Lok Sabha Question No. 919 (UNSTARRED), answered on 2023-02-07
Subject: Promoting Multi-State Seed Cooperative Societies
Ministry: COOPERATION
Asked by: Rahul Ramesh Shewale, Girish Bhalchandra Bapat, Chandra Sekhar Sahu, Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 919 TO BE ANSWERED ON 07/02/2023

## Promoting Multi-State Seed Cooperative Societies

## 919. SHRI RAHUL RAMESH SHEWALE:

SHRI GIRISH BHALCHANDRA BAPAT:

SHRI CHANDRA SEKHAR SAHU:

DR. PRITAM GOPINATHRAO MUNDE:

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

(a) whether the Union Government has decided to set up and promote a national level MultiState Seed Cooperative Society under Multi-State Cooperative Societies (MSCS) Act, 2002 and if so, the details along with objectives thereof;

(b) whether there is a need to preserve and promote indigenous natural seeds through various cooperative societies across the country;

(c) if so, the response of the Union Government thereon and the steps taken or proposed to be taken to promote indigenous natural seeds;

(d) the steps taken by the Union Government to leverage the strengths of cooperatives and transform them into successful and vibrant business enterprises in the country particularly in Odisha; and

(e)  whether  quality  seeds  production  through  national  level  seed  cooperative  society  will increase  the  agriculture  production  thereby  leading  to  more  employment  in  the  agriculture and cooperative sector and if so, the details thereof?

## ANSWER

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

(a) , (b) , (c)  and (e) : The Government has approved setting up of a new national level multistate  cooperative  seed  society  to  act  as  an  apex  organization  for  production,  procurement, processing, branding, labelling, packaging, storage, marketing, distribution of quality seeds and strategic research & development in seed sector.

The society is promoted by Indian Farmers Fertiliser Cooperative Limited (IFFCO), Krishak Bharati  Cooperative  Limited  (KRIBHCO),  National  Agricultural  Cooperative  Marketing Federation  of  India  Limited  (NAFED),  National  Dairy  Development  Board  (NDDB)  and National Cooperative Development Corporation (NCDC). KRIBHCO is the chief promoter of the society. The society will have initial paid up capital of ₹250 Cr. and authorized share capital of ₹500 Cr. The head office of the society will be at New Delhi. This national level multi-state seed cooperative society envisages to involve all forms of cooperative structures and all other means to increase the Seed Replacement Rate and Varietal Replacement Rate by ensuring the role of farmers in quality seed cultivation and seed variety trials, production and distribution of certified seeds with a single brand name. This initiative is aimed to increase the  agriculture  production  in  the  country  thereby  leading  to  more  employment  in  the agriculture and cooperative sector; reducing the dependence on imported seeds and providing boost to rural economy.

One of  the  objectives  of  Multi  State  Cooperative  Seed  Society  is  to  develop  a  system  for preservation of indigenous natural seeds to save them from extinction.

(d):  In  order  to  realize  the  vision  of  'Sahakar-se-Samriddhi',  promote  cooperative  based economic development model, strengthen cooperative movement and deepen its reach up to the grassroots, Ministry  of Cooperation since its formation in July, 2021 has taken various initiatives 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. 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'.
6. 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.
7. 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.
8. 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.
9. 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.
10. Reduction in surcharge on cooperative societies: Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.
11. Reduction in Minimum Alternate Tax: MAT reduced for cooperatives from 18.5% to 15%.
12. 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.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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.
18. 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.
19. New  National  Multi-State  Cooperative  Organic  Society:  New  apex  national  multistate cooperative organic society being established under the MSCS Act, 2002 as umbrella organization to produce, distribute and market certified and authentic organic products.
20. 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.