Lok Sabha Question No. 678 (UNSTARRED), answered on 2024-02-06
Subject: Worlds Largest Grain Storage Plan
Ministry: COOPERATION
Asked by: Rita Bahuguna Joshi, Unmesh Bhaiyyasaheb Patil, Sujay Radhakrishna Vikhepatil, Kanakmal Katara, Heena Vijaykumar Gavit, Krishna Pal Singh Yadav, Shrikant Eknath Shinde

## GOVERNMENT OF INDIA

## MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 678

## TO BE ANSWERED ON 06/02/2024

## World's Largest Grain Storage Plan

678 PROF. RITA BAHUGANA JOSHI:

SHRI KANAKMAL KATARA:

DR. SHRIKANT EKNATH SHINDE:

DR. HEENA VIJAYKUMAR GAVIT:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

SHRI UNMESH BHAIYYASAHEB PATIL:

DR. KRISHNA PAL SINGH YADAV:

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

- (a) whether India fares well on a global scale in terms of its cooperative sector performance and if so, the details thereof;
- (b) the details of the prominent Cooperative models in the country;
- (c) the details of the World's Largest Grain Storage Plan in Cooperative Sector approved by the Union Cabinet in 2023, including its primary objectives and the advantages it aims to deliver;
- (d) the current status of this initiative; and
- (e) the ways in which it is expected to alleviate the issues surrounding foodgrain storage in the country, benefiting both farmers and consumers?

## ANSWER

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

(a)  to  (b):  The  United  Nations  system  values  the  important  role  of  cooperatives  in  social development.    In      1995,      the    World      Summit      for      Social      Development      held        in Copenhagen recognized  the  importance  of  cooperatives  in  the  people-centered  approach  to development  and  agreed  to 'utilize and  develop  fully the potential and  contribution of cooperatives  for  the  attainment  of  social  development  goals,  in  particular  the  eradication  of poverty,  the  generation  of  full  and  productive  employment,  and  the  enhancement  of  social integration.' (Commitment 9h).

The  General  Conference  of  the  International  Labour  Organization  (ILO),  in  its  90th Session on 3 June 2002, inter-alia, adopted that the promotion and strengthening of the identity of cooperatives should be encouraged on the basis of:

(i)  cooperative  values  of  self-help,  self-responsibility,  democracy,  equality,  equity  and solidarity;  as  well  as  ethical  values  of  honesty,  openness,  social  responsibility  and  caring  for others; and

(ii) cooperative principles as developed by the international cooperative movement. These principles are: voluntary and open membership; democratic member control; member economic participation;  autonomy  and  independence;  education,  training  and  information;  cooperation among cooperatives; and concern for community.

India  fares  well  on  above  international  parameters  in  the  cooperative  sector.  The  cooperative principles are already enshrined in the Multi State Cooperative Societies Act, 2002. In order to promote and strengthen the cooperatives in India, the Ministry of Cooperation, since its inception on  6th  July  2021,  has  undertaken  several  initiatives  to  realize  the  vision  of  'Sahakar-seSamriddhi' and to strengthen and deepen the cooperative movement from Primary to Apex level Cooperatives in the country. A list of initiatives taken and progress made so far is in Annexure I.

As per the World Cooperative Monitor (WCM) 2022, Cooperative organizations in India like  IFFCO  and  GCMMF are ranked  among  the  top  two  in  the  agriculture  sector,  ULCCS  is ranked second in the Industry and utility sector and 12 cooperative banks (seven StCB and four UCB and one credit society) are among top 300 ranked cooperatives in the world.

Illustrious  examples  of  a  few  Indian  Cooperative  models,  which  have  proved  their significant  role  in  improving  the  socio-economic  condition  of  their  members,  who  are  mainly from rural areas, are as under:

- (i) India's  Cooperative  Sugar  Mills  (CSMs)  together  constitute  the  largest  sugar cooperative sector in the world. The CSMs contribute 4-9% in global sugar exports and 284 CSMs altogether support 56.80 lakh shareholder cane-growing farmers pan India.
- (ii) The contribution of IFFCO model in fertilizer sector is at Annexure II.
- (iii) The contribution of Amul model in dairy sector is at Annexure III.

(c)  to  (e): In  order  to  address  the shortage of food grain storage capacity in the country, the Government  on  31.05.2023,  has approved  the 'World's Largest Grain Storage Plan in Cooperative Sector', which has been rolled out as a Pilot Project in different States/UTs of the country.

The Plan entails creation of various agri infrastructure at PACS level, including setting up decentralized  godowns,  custom  hiring  center,  processing  units,  Fair  Price  Shops,  etc.  through convergence of various existing schemes of the Government of India (GoI), such as, Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), Pradhan Mantri Formalization of Micro Food Processing

Enterprises  Scheme  (PMFME),  etc.,  under  which  PACS  can  avail  subsidies  and  interest subvention  benefits  for  construction  of  godowns/storage  facilities  and  setting  up  of  other  agri infrastructure.  Further,  NABARD  is  also  extending  financial  support  to  PACS  by  refinancing them  at  highly  subsidized  rates  of  around  1  percent,  after  incorporating  the  benefits  of  3% interest subvention under AIF scheme for projects up to Rs. 2 Crore.  Therefore, the plan aims to strengthen the economic condition of PACS by diversifying their business activities and giving them additional sources of revenue, thus improving their financial sustainability.

The Pilot Project is being implemented by National Cooperative Development Corporation (NCDC) with the support of NABARD, Food Corporation of India (FCI), Central Warehousing  Corporation  (CWC),  NABARD  Consultancy  Services  (NABCONS),  National Buildings Construction Corporation (NBCC), etc. in different States/ UTs. Consultancy support is also being extended to PACS through these agencies under the project.

Further, an MoU has been signed between Ministry of Cooperation (GoI), Department of Food and Public Distribution (GoI), Food Corporation of India (FCI) and National Cooperative Development  Corporation  (NCDC)  to  ensure  full  capacity  utilization  of  the  storage  capacity being created at PACS level under the Project. This will facilitate hiring of godowns constructed at PACS level by FCI, integration of these godowns with the supply chain of foodgrains, thereby providing  requisite  forward  and  backward  market  linkages  to  PACS. Also,  an  MoU  has  been signed  between  Ministry  of  Cooperation  (GoI),  Department  of  Consumer  Affairs  (GOI), NABARD, NCDC and NCCF for facilitating NCCF in carrying out construction and hiring of warehouses to be constructed at PACS level under this project.

States/  UTs  and  National  level  Cooperative  Federations,  like  National  Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India  Ltd.  (NAFED),  have  identified  more  than  2,000  PACS  for  creation  of  storage  capacity under the Pilot Project. Presently, construction of godown is in various stages in 13 PACS of 13 States/ UTs.

Establishment of decentralized storage capacity at PACS level would reduce post harvest losses by creating sufficient storage capacity in the country and strengthen food security of the country up to Panchayat/village level. It will  also prevent distress sale of crops by  farmers  and enable them  to  realise  better  prices  for  their  crops.  Since  PACS  would  be  operating  as  procurement centre  as  well  as  Fair  Price  Shops  (FPS),  the  cost  incurred  in  transportation  of  food  grains  to procurement centres and again transporting the stocks back from warehouses to FPS would also be saved.

The project will also provide various benefits to farmers and consumers, including the following:

- i. Farmers will be able to store their produce in the godown constructed at PACS and avail bridge finance for the next cycle of crop and sell the produce at a time of their choice, or sell  their  whole  crop  to  the  PACS  at  Minimum  Support  Price  (MSP),  which  would enable them to avoid distress sale of crops.
- ii. They will be able to get various agri inputs and services at the Panchayat/ village level itself.
- iii. Through  diversification  of  business,  farmers  will  be  able  to  get  additional  sources  of income.
- iv. Through  integration  with  the  food  supply  management  chain,  farmers  will  be  able  to expand their market size and realize better value for their produce.
- v. Creation of adequate food grain storage capacity at PACS level will help in reduction of post-harvest loss, thus enabling farmers to earn better prices.
- vi. In  addition  to  the  above,  this  Plan  would  help  in  ensuring  food  security  at  Panchayat/ village level across the country, thereby benefitting the consumers.

*****

## Brief of 54 initiatives taken by Ministry of Cooperation

Ministry of Cooperation, since its inception on 6 th July,  2021,  has  undertaken  several  initiatives  to realize the vision of 'Sahakar-se-Samriddhi' and to strengthen & deepen the cooperative movement from Primary to Apex level Cooperatives in the country. List of initiatives taken and progress made so far are as follows:

## A. Making Primary Cooperatives economically vibrant and transparent

1. Model Bye-Laws for  PACS making them multipurpose, multidimensional and transparent entities : Government, in consultation with all the stakeholders, including States/ UTs, National Level Federations, State Cooperative Banks  (StCBs), District Central Cooperative Banks (DCCBs), etc., has prepared and circulated Model Byelaws for PACS to all  the  States/  UTs,  which  enable  PACS  to  undertake  more  than  25  business  activities, improve  governance,  transparency  and  accountability  in  their  operations.  Provisions  have also been made to make the membership of PACS more inclusive and broad-based, giving adequate representation to women and Scheduled Castes/Schedules Tribes. So far, 32 States/ UTs have adopted Model Byelaws or their existing byelaws are in line with Model Byelaws.
2. Strengthening of PACS through Computerization :  In  order  to  strengthen  PACS,  project for Computerization of 63,000 functional PACS with a total financial outlay of ₹2,516 Crore has been approved by the Government of India, which entails bringing all functional PACS in the  Country  onto  a  common  ERP  based  national  software,  linking  them  with  NABARD through  StCBs  and  DCCBs.  A  total  of  62,318  PACS  from  28  States/  UTs  have  been sanctioned under the project. Software is ready and ERP onboarding has already started in 15,783 PACS in 27 States/ UTs so far.
3. Establishing  New  Multipurpose  PACS/  Dairy/  Fishery  Cooperatives  in  uncovered Panchayats :  The  plan  for  establishing  new multipurpose PACS or primary dairy/ fisheries cooperatives  covering  all  the  Panchayats/  villages  in  the  next  five  years,  with  support  of NABARD, NDDB, NFDB, NCDC and other National level Federations has been approved by  the  Government. As  reported  by  the  States/  UTs,  the  process  for  registering  more  than 9,000 new PACS/ Dairy/ Fishery cooperative societies is in various stages.
4. World's Largest Decentralized Grain Storage Plan in Cooperative sector :  Government has approved a plan to create warehouses, custom hiring centers, primary processing units and other agri infrastructure for grain storage at PACS level, through convergence of various GOI schemes, including AIF, AMI, SMAM, PMFME, etc. This will reduce wastage of food grains and transportation costs, enable farmers to realize better prices for their produce and meet various agricultural needs at the PACS level itself. 27 States/ UTs and National level Cooperative Federations such as National Cooperative Consumers Federation (NCCF) and National  Agricultural  Cooperative  Marketing  Federation  of  India  Ltd.  (NAFED),  have identified more than 2,000 PACS for creation of storage capacity under the Pilot Project.
5. PACS as Common Service Centers (CSCs) for better access to e-services : An MoU has been  signed  between  Ministry  of  Cooperation,  MeitY,  NABARD  and  CSC  e-Governance Services India Limited for providing more than 300 e-services such as banking, insurance, Aadhar  enrolment/  updation,  health  services,  PAN  card  and  IRCTC/  Bus/ Air  ticket,  etc. through PACS. So far, 30,647 PACS have started providing CSC services to rural citizens which will also result in increase in income of these PACS.
6. Formation of new Farmer Producer Organizations (FPOs) by PACS :  Government  has allowed 1,100 additional FPOs to be formed by PACS with the support of NCDC, in those blocks  where  FPOs  have not  yet  been  formed  or  the  blocks  are  not  covered  by  any  other implementing agency. Apart from this, 672 FPOs have been formed in the cooperative sector by NCDC. This will be helpful in providing farmers with necessary market linkages and get fair and remunerative prices for their produce.
7. PACS given priority for Retail Petrol/ Diesel outlets : Government has allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets.   As per information received from Oil Marketing Companies (OMCs), a total of 240 PACS from 26 States/UTs have applied online for retail petrol/ diesel outlets. As informed by OMCs, 39 PACS have been selected so far.
8. PACS  given  permission  to  convert  bulk  consumer  petrol  pumps  into  retail  outlets : Based on the discussions with the Ministry of Petroleum and Natural Gas, guidelines have been  issued  to  convert  the  existing  bulk  consumer  licensee  PACS  into  retail  outlets  for increasing  the  profit  of  PACS  and  generate  employment  opportunities  in  rural  areas.  109 PACS from 4 States having wholesale consumer pumps have given consent for conversion into  Retail  Outlets,  out  of  which  43  PACS  have  received  Letter  of  Intent  (LOI)  from  the OMCs.
9. PACS eligible  for  LPG  Distributorship  for  diversifying  its  activities :  Government  has now allowed  PACS  to  apply  for  LPG  Distributorships.  This  will  give  PACS  an  option  to increase  their  economic  activities  and  create  new  employment  opportunities  in  rural  areas. From three States/ Union Territories, a total of 9 PACS have submitted online applications.
10. PACS  as  PM  Bharatiya  Jan  Aushadhi  Kendra  for  improving  access  to  generic medicines  at  rural  level :  Government  is  promoting  PACS  to  operate  Pradhan  Mantri Bhartiya Janaushadhi Kendras which will provide additional income source to them and ease the access to generic medicines for rural citizens. So far, 4,629 PACS/ cooperative societies have applied online for PM Janaushadhi Kendras, out of which 2,475 PACS have been given initial approval. Out of these 2,475 PACS, 617 have received drug licences from State Drug Controllers which are ready to function as Jan Aushadhi Kendras.
11. PACS  as  Pradhan  Mantri  Kisan  Samriddhi  Kendras  (PMKSK): Government  is promoting  PACS to operate PMKSK for ensuring easy  accessibility of fertilizer  &  related

services  to  farmers  in  the  country.  As  per  the  information  shared  by  States/  UTs,  35,293 PACS are functioning as PMKSK.

12. Convergence  of  PM-KUSUM  at  PACS  level :  Farmers  associated  with  PACS  can  adopt solar agricultural water pumps and install photovoltaic modules in their farms.
13. PACS to carry out O&M of rural piped water supply schemes (PWS) : In order to utilize the  deep  reach  of  PACS  in  rural  areas,  on  the  initiative  of  the  Ministry  of  Cooperation, Ministry  of  Jal  Shakti  has  made  PACS  as  eligible  agencies  to  carry  out  the  Operations  & Maintenance (O&M) of PWS in rural areas. As per information received from States/ UTs, 1,630 PACS have been identified/ selected by 14 States/ UTs to provide O&M services at Panchayat/ Village level.
14. Micro-ATMs  to  Bank  Mitra  Cooperative  Societies  for  providing  doorstep  financial services : Dairy and Fisheries cooperative societies can be made Bank Mitras of DCCBs and StCBs. To ensure their ease of doing business, transparency and financial inclusion, MicroATMs are also being  given to these  Bank  Mitra  Co-operative  Societies  with  support  from NABARD to provide 'Door-step Financial Services'. As a pilot project, 1,723 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Panchmahal and Banaskantha Districts of Gujarat. This initiative is now being implemented in all the Districts of the State of Gujarat.
15. Rupay Kisan Credit Card to Members of Milk Cooperatives : In order to expand the reach of DCCBs/ StCBs and to provide necessary liquidity to the members of Dairy Cooperative societies,  Rupay  Kisan  Credit  Cards  (KCCs)  are  being  distributed  to  the  members  of cooperatives for providing credit at comparatively lower interest rates and to enable them to carry out other financial transactions. So far, 1,23,685 Rupay KCC have been distributed in Panchmahal and Banaskantha Districts of Gujarat. This initiative is now being implemented in all the Districts of the State of Gujarat.
16. Formation of Fish Farmer Producer Organization (FFPO) :  In  order  to  provide  market linkage and processing facilities to fishermen, NCDC has registered 69 FFPOs in the initial phase. In addition, Department of Fisheries, Government of India has allocated the work of converting  1000  existing  fisheries  cooperative  societies  into  FFPOs  to  NCDC,  with  an approved outlay of Rs. 225.50 crore.

## B. Strengthening the Urban and Rural Cooperative Banks

17. UCBs have been allowed to open new branches to expand their business: UCBs can now open new branches up to 10% (maximum 5 branches) of the existing number of branches in the previous financial year without prior approval of RBI.
18. UCBs have been allowed by RBI to offer doorstep services to their customers: Door step banking  facility  can  now  be  provided  by  UCBs. Account  holders  of  these  banks  can  now

avail various banking facilities at home such as cash withdrawal, cash deposit, KYC, demand draft and life certificate for pensioners, etc.

19. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like  Commercial  Banks: Co-operative  banks,  through  board-approved  policies,  can  now provide the process for settlement with borrowers, along with technical write-off.
20. Time limit increased to achieve Priority Sector Lending (PSL) targets given to UCBs : RBI has extended the timeline for UCBs to achieve Priority Sector Lending (PSL) targets by two years i.e., up to March 31, 2026.
21. A Nodal Officer designated in RBI for regular interaction with UCBs :  In order to meet the  long  pending  demand  of  the  cooperative  sector  for  closer  coordination  and  focused interaction, RBI has notified a nodal officer.
22. Individual  housing  loan  limit  more  than  doubled  by  RBI  for  Rural  and  Urban Cooperative Banks:
- a. Housing loan limit of Urban Cooperative Banks has now been doubled from Rs. 30 lakh to Rs. 60 lakh.
- b. Housing loan limit of Rural Cooperative Banks has been increased to two and a half times to Rs. 75 lakh.
23. Rural Cooperative Banks will now be able to lend to commercial real estate/ residential housing  sector,  thereby  diversifying  their  business :  This  will  not  only  help  Rural Cooperative Banks to diversify their business, but will benefit Housing cooperative societies also.
24. License fee reduced for Cooperative Banks : License fee for onboarding Cooperative Banks to 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions. Cooperative financial institutions will also be able to get the facility free of cost for the first three months of the pre-production phase. With this, farmers will now be able to get the facility of banking at their home with through biometrics.
25. Non-scheduled  UCBs,  StCBs  and  DCCBs  notified  as  Member  Lending  Institutions (MLIs)  in CGTMSE  Scheme  to  increase  the  share  of  cooperatives  in lending: Cooperative banks will now be able to take advantage of risk coverage up to 85 percent on the loans given. Also, cooperative sector enterprises will also be able to get collateral free loans from cooperative banks now.
26. Notification  of  Scheduling  norms  for  including  Urban  Cooperative  Banks: UCBs  that meet the 'Financially Sound and Well Managed' (FSWM) criteria and have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to  be  included  in  Schedule  II  of  the  Reserve  Bank  of  India Act,  1934  and  get  'Scheduled' status.
27. Monetary ceiling doubled by RBI for Gold Loan: RBI has doubled monetary ceiling from Rs. 2 lakh to Rs.4 lakh, for those UCBs that meet the PSL targets.
28. Umbrella Organization for Urban Cooperative Banks : RBI has accorded approval to the National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) for the  formation  of  an  Umbrella  Organization  (UO)  for  the  UCB  sector,  which  will  provide necessary IT infrastructure and operational support to around 1,500 UCBs.

## C. Relief to Cooperative Societies in the Income Tax Act

29. Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.: This will reduce the burden of Income Tax on Cooperative Societies and more capital will be available with them to work for the benefit of their members.
30. MAT reduced  for  cooperatives  from  18.5%  to  15%: With  this  provision,  now  there  is parity between Cooperative Societies and Companies in this regard.
31. Relief  in  cash  transactions  under  section  269ST  of  the  Income  Tax  Act: In  order  to remove  difficulties  in  cash  transactions  by  cooperatives  under  Section  269ST  of  IT  Act, Government has issued a clarification that cash transaction of less than Rs. 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and will not be charged with income tax penalty.
32. Tax cut for new manufacturing Cooperative societies: Government has decided that a flat lower  tax  rate  of  15%  will  be  charged,  compared  to  an  earlier  rate  of  up  to  30%  plus surcharge, for new cooperatives commencing manufacturing activities by March 31, 2024. This will encourage the formation of new cooperative societies in the manufacturing sector.
33. Increase  in  limit  of  Cash  Deposits  and  Cash  Loans  by  PACS  and  PCARDBs: Government has enhanced the limit for Cash Deposits and Cash Loans by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) from Rs. 20,000 to Rs. 2 lakh per member. This provision will facilitate their activities, increase their business and benefit members of their societies.
34. Increase in the limit of Tax Deducted at Source (TDS) in Cash Withdrawal: Government has increased the cash withdrawal limit of cooperative societies without deduction of tax at source  from  Rs.1  crore  to  Rs.3  crore  per  year.  This  provision  will  save  Tax  Deducted  at Source (TDS) for cooperative societies, which will enhance their liquidity.

## D. Revival of Cooperative Sugar Mills

35. Relief from Income Tax to Sugar Cooperative Mills : Government has issued a clarification that  cooperative  sugar  mills  would  not  be  subjected  to  additional  income  tax  for  paying higher sugarcane prices to farmers up to Fair and Remunerative or State Advised Price, from April, 2016 onwards.
36. Resolution of decades old pending issues related to Income Tax of Sugar Cooperative Mills :  Government  has  made  a  provision  in  its  Union  Budget  2023-24,  wherein  Sugar cooperatives have been allowed to claim as expenditure their payments to sugarcane farmers for the period prior to assessment year 2016-17, giving them a relief of more than Rs.10,000 crore.
37. Rs. 10,000 crore loan scheme launched for strengthening of Sugar Cooperative Mills : Government  has  launched  a  scheme  through  NCDC  for  setting  up  ethanol  plants  or cogeneration  plants  or  for  working  capital  or  for  all  three  purposes.  Loan  amount  of  Rs. 3,310.57 cr. has been sanctioned by NCDC to 25 Cooperative Sugar Mills so far.
38. Preference to Cooperative Sugar Mills in purchase of ethanol :  Cooperative Sugar Mills have now been put at par with private companies for ethanol procurement by Government of India under the Ethanol Blending Programme (EBP).
39. Reduction in GST on molasses from 28% to 5%: Government has decided to reduce the GST on molasses from 28% to 5% which will enable cooperative sugar mills to earn more profits for their members by selling molasses to distilleries with higher margins.

## E. Three new National Level Multi-State Societies

40. New National Multi-State Cooperative Seed Society for certified seeds : Government has established  a  new  apex  multi-state  cooperative  seed  society  under  the  MSCS  Act,  2002, namely  Bharatiya  Beej  Sahakari  Samiti  Limited  (BBSSL)  as  an  umbrella  organization  for quality seed cultivation,  production and distribution under a single brand. Wheat, mustard, and  pulses  (gram,  pea)  breeder  seeds  have  been  planted  across  1,750  acres.  Efforts  are underway to cultivate foundation/ certified seeds for groundnut, paddy, maize, and millet. So far,  13,985  PACS/  Cooperative Societies  from 33 States/ Union Territories have submitted membership applications.
41. New National Multi-State Cooperative Organic Society for organic farming : Government  has  established  a  new  apex  multi-state  cooperative  organic  society  under  the MSCS Act, 2002, namely National Cooperative Organics Limited (NCOL) as an umbrella organization  to  produce,  distribute  and  market  certified  and  authentic  organic  products. NCOL has received membership applications from 5,102 PACS/ cooperative societies from 26  States/  UTs  so  far.  Six  organic  products  have  been  launched  by  NCOL  under  'Bharat Organics' brand.
42. New National Multi-State Cooperative Export Society for promoting exports : Government  has  established  a  new  apex  multi-state  cooperative  export  society  under  the MSCS Act,  2002,  namely  National  Cooperative  Export  Limited  (NCEL)  as  an  umbrella organization to give thrust to exports from cooperative sector.  NCEL  has  received membership applications from 6,499 PACS/ cooperative societies from 27 States/ UTs so far.

Till date, NCEL has got permission to export 23.9 LMT rice to 20 countries and 50,000 MT sugar to 2 countries.

## F. Capacity Building in Cooperatives

43. Promotion  of  training  and  awareness  through  National  Council  for  Cooperative Training (NCCT) :  By  increasing  its  reach,  NCCT  has  conducted  3,287  training  programs and provided training to 2,01,507 participants in FY 2022-23.
44. Establishment of the Cooperative University: Cabinet Note has been prepared by Ministry of  Cooperation  for  setting  up  of  a  National  Cooperative  University  for  Cooperative education,  training,  consultancy,  research  and  development  and  a  sustainable  and  quality supply of trained manpower.

## G. Use of Information Technology for 'Ease of Doing Business'

45. Computerization  of  the  Central  Registrar's  Office :  Central  Registrar's  office  has  been computerized to create a digital ecosystem for Multi-State Cooperative Societies, which will assist in processing applications and service requests in a time bound manner.
46. Scheme  for  computerization  of  office  of  RCSs  in  States  and  Union  Territories :  To increase 'Ease of doing business' for Cooperative Societies and create a digital ecosystem for transparent  paperless  regulation  in  all  the  States/  Union  Territories,  a  Centrally  Sponsored Project for computerization of RCS Offices has been approved by the Government. Grants will be provided for purchase of hardware, development of software, etc. to the States/ UTs. So far, proposals from 33 States/ UTs have been received for the project, out of which 30 have been sanctioned.
47. Computerization of Agriculture and Rural Development Banks (ARDBs) : To strengthen the long-term cooperative credit structure, the project of computerization of 1,851 units of Agriculture  and  Rural  Development  Banks  (ARDBs)  spread  across  13  States/  Union Territories has been approved by the Government. NABARD is the implementing agency for the  project  and  will  develop  a  national  level  software  for ARDBs.  Hardware,  support  for digitization of legacy data, training to the employees, etc. will be provided under the project. So far, proposals received from 8 States have been sanctioned under the project.

## H. Other Initiatives

48. New  National  Cooperative  Database  for  authentic  and  updated  data  repository :  A database  of  cooperatives  in  the  country  has  been  prepared  with  the  support  of  State Governments to facilitate stakeholders in policy making and implementation of programmes/ schemes  related  to  cooperatives  across  the  country.  So  far,  data  of  around  8.02  lakh cooperatives has been captured in the database.
49. Formulation of New National Cooperative Policy : A National level committee comprising 49  experts  and  stakeholders  drawn  from  all  over  the  Country  has  been  constituted  to
3. formulate the New National Cooperative Policy for enabling a vibrant ecosystem to realize the vision of 'Sahakar-se-Samriddhi'.
50. Multi-State Co-operative Societies (Amendment) Act, 2023 : Amendment has been brought in the MSCS  Act, 2002 to strengthen governance, enhance transparency, increase accountability,  reform  electoral  process  and  incorporate  provisions  of  97 th Constitutional Amendment in the Multi State Cooperative Societies.
51. Inclusion  of  Cooperatives  as  'buyers'  on  GeM  portal :    Government  has  permitted cooperatives  to  register  as  'buyer'  on  GeM,  enabling  them  to  procure  goods  and  services from over 67 lakh vendors to facilitate economical purchases and greater transparency. So far, 559 cooperative societies have been onboarded on GeM as buyers.
52. Expansion of National Cooperative Development Corporation (NCDC) to increase its range and depth : NCDC  has  launched new  schemes in various sectors such as 'Swayamshakti Sahkar' for SHGs; 'Deerghavadhi Krishak Sahkar' for long term agricultural credit and 'Dairy Sahkar' for dairy. Total financial assistance of Rs. 41,031 Crores has been disbursed by NCDC in FY 2022-23, which is almost 20% higher than the disbursement of Rs.34,221 crore in 2021-22. Government of India has permitted NCDC to issue bonds worth ₹2000  crore  with  government  guarantee,  subject  to  the  adherence  of  specified  terms  and conditions. Further, NCDC is setting up sub-offices in 6 North Eastern States - Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Nagaland and Tripura with the objective of taking various national schemes to the cooperative societies at their doorstep.
53. Financial  assistance  by  NCDC  for  Deep  Sea  Trawlers :  NCDC  is  providing  financial assistance for  projects  related  to  deep  sea  trawlers  in  coordination  with  the  Department  of Fisheries,  Government  of  India.  NCDC  has  already  sanctioned  financial  assistance  of  Rs. 20.30 crore for purchase of 14 deep sea trawlers for the Fisheries Cooperative Societies of Maharashtra.
54. Refund to Investors of Sahara Group of Societies : A portal has been launched for making payments  to  the  genuine  depositors  of  the  cooperative  societies  of  Sahara  Group  in  a transparent  manner.  Disbursements  have  already  started  after  proper  identification  and submission of proof of their deposits and claims.

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## IFFCO's Co-operative Model

Indian  Farmers  Fertiliser  Cooperative  Society,  known  as  IFFCO,  is  a  Multi-State Cooperative Society. Today, IFFCO has been ranked as the No. 1 cooperative in the world in the line-up of 300 top cooperatives of the world in the 2022 edition of the Annual World Cooperative Monitor (WCM) report based on the ratio of turnover over GDP per capita income, designed by International Cooperative Alliance (ICA).

IFFCO  being  an  agriculture  cooperative  its  membership  is  open  to  all  agricultural cooperative societies from the primary/ village level to state and national cooperatives of India. IFFCO has a member base of more than 35,500 societies out of which more than 80% of the members  are  Primary  Level  Societies.  The  main  business  of  the  member  societies  is  to  sell IFFCO's Quality  Fertiliser to  farmers.  IFFCO  has  five  state-of-the  art  plants  located  in  Kalol, Kandla, Phulpur, Aonla & Paradeep. In order to meet the demand supply gap of Indian Fertiliser Industry, IFFCO has entered into Joint Venture Projects outside India in Oman, Jordan & Senegal etc. IFFCO also has a wholly owned subsidiary in Dubai which acts as an international trading arm of IFFCO and primarily helps to handle import, export and logistics support.

With time IFFCO has diversified into different areas such as Insurance, Agrochemicals, E-Commerce, Rural Finance, Special Economic Zone, Kisan Call Centre etc. for the benefit of farmers.  IFFCO  has  promoted  other  cooperative  Institution  namely  Indian  Farm  Forestry Development Cooperative Ltd. (IFFDC) which focuses on afforestation of wasteland and farm forestry, integrated watershed development, rural livelihood development, women empowerment, CSR etc.

IFFCO is paying 20% dividends to the members on their paid-up share. Further, IFFCO is sharing its expertise, knowledge and experience with various countries like Brazil, Argentina, Mauritius, Jordan, Nepal, Bhutan, Sri Lanka and Philippines etc, to strengthen cooperatives for mutual growth and business development.

In  order  to  promote  sustainable  as  well  as  environment-friendly  agriculture,  recently IFFCO  has  launched  Nanotechnology  based  products  i.e.  Nano  Urea  and  Nano  DAP.         At present paid up Share Capital of the Society stood at Rs. 6126.5 million (Rs. 612.65 Crore) as on March 31, 2023.

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## ANNEXURE-II

## AMUL's Co-operative Model

Gujarat  Cooperative  Milk  Marketing  Federation  Ltd.  (Amul)  is  India's  largest  FMCG company  with  annual  brand  sales  turnover  of  Rs.  72,000  Crores.  GCMMF  (Amul)  is  a cooperative federation comprising 36 Lakh milk producers in Gujarat (India), organized under 18,600 village dairy cooperative societies. It handles more than 3 Crore litres of milk per day.

Amul's  three-tier  structure  has  been  a  cornerstone  of  its  success  in  India's  cooperative landscape.  At  the  grassroots  level  are  the  primary  milk  producers,  who  give  the  milk  to  the village co-operative societies (VDCS). The District Cooperative Milk Producers' union,  collects the milk from all VDCS of the district and  process the milk to  VDCS converts into the valueadded products. The State level Milk Marketing Federation, overseeing sales and marketing of the products manufactured by all district unions of the state. This three-tier model ensures fair returns for farmers, efficient milk collection, and widespread availability of Amul products.

GCMMF (Amul) is Asia's largest, and the world's 8 th largest dairy company in terms of volume of milk handled (by International Farm Comparison Network 2020) .   In the year 2023 Amul has been recognised as the Strongest Dairy Brand in the World and 2 nd Strongest Food Brand  in  the  World  ( by  Brand  Finance,  UK ).  Amul  ranks  as  3 rd largest  brand  globally  being picked up from shelves 6 billion times ( by Kantar ).

The Amul Model is also being replicated in the neighbouring countries of India and the countries of Africa continent.

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## ANNEXURE-III