Lok Sabha Question No. 1518 (UNSTARRED), answered on 2023-12-12
Subject: Functioning of BBSSL
Ministry: COOPERATION
Asked by: Sunil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 1518 TO BE ANSWERED ON 12/12/2023

## Functioning of BBSSL

## † 1518       SHRI SUNIL KUMAR SINGH:

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

- (a) the types of membership in Bharatiya Beej Sahkari Samiti Limited (BBSSL);
- (b) the process fixed to become a member of BBSSL;
- (c) the benefits likely to be availed by the farmers and its members through BBSSL; and
- (d) whether there is any provision to distribute dividends to the members of BBSSL and if so, the details thereof?

## ANSWER

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

(a) to (b): Ministry of Cooperation has set up  Bhartiya Beej Sahkari Samiti Limited under the Multi-State  Cooperative  Societies  (MSCS) Act,  2002.  The  BBSSL  will  undertake  production, procurement & distribution of quality seeds under single brand through cooperative network to improve crop yield and develop a system for preservation and promotion of indigenous natural seeds. The BBSSL has provision of two kinds of members, as per details given below:

- (i) Ordinary Members: The  following shall be eligible to become ordinary member of the BBSSL:-
- a) Any multi-state co-operative society or any co-operative society;
- b) The  National  Co-operative  Development  Corporation  (NCDC)  established  under  the National Co-operative Development Corporation Act, 1962 (26 of 1962);
- c) Any other corporation owned or controlled by the Government;
- d) Such  class  or  classes  of  persons  or  associations  of  persons  as  may  be  permitted  by  the Central Registrar having regard to the nature and activities of the Society.

No individual shall be eligible to become ordinary member of the BBSSL.

Ordinary members shall subscribe to share capital as per following classification of membership:-

- (i) Class-1: Co-operative organizations such as Indian Farmers Fertilizer Cooperative Limited (IFFCO),  Krishak  Bharti  Co-operative  Limited  (KRIBHCO),  National  Agricultural  Cooperative Marketing Federation of India Limited (NAFED), National Co-operative Development Corporation (NCDC) and National Dairy Development Board (NDDB) shall each purchase at least 5,00,000 shares of the face value of ₹1,000/- each;
- (ii) Class-2: A State  level  co-operative  society,  other  than  mentioned  in  sub-clause  (i)  shall subscribe at least 1000 shares of the face value of ₹1,000/- each;
- (iii) Class-3: A  National  co-operative  society,  other  than  mentioned  in  sub-clause  (i)  and  a multi-state  cooperative  society,  not  designated  as  national  cooperative  society,  shall purchase at least 500 shares of the face value of ₹1,000/- each;
- (iv) Class-4: A co-operative society, other than a State level or primary co-operative society, shall purchase at least 10 shares of the face value of ₹ 1,000/- each;
- (v) Class-5 : A primary level co-operative society shall purchase one share of the face value of ₹ 1,000/-; and
- (vi) Class-6: Such class or classes of persons or associations of persons as may be permitted to become members under clause 7(1) (d) shall purchase at least 2 shares of the face value of ₹1,000/- each.

Value  of  shares  shall  be  paid  in  full  at  one  time  and  Share  Certificate  shall  be  issued  on realization of the full amount of shares subscribed for.

- (ii) Nominal  or  associate  member: The  Society  may,  in  the  interest  of  promotion  of  its business, admit any other person as nominal member or associate member in accordance with  the  provisions  of  the  Multi-State  Co-operative  Societies Act  on  payment  of  a  nonrefundable fee of ₹1,00,000/- (Rupees One Lakh only).

Any company created or incorporated under the Companies Act/Producer Companies Act, except a Government Company, can only become an Associate or Nominal Member.

As  per  information  provided  by  BBSSL,  so  far  they  have  received  8,200  applications  for membership under different classes from 27 States/UTs .

(c) : BBSSL, National Cooperative Seed Society will help in increasing 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 utilizing the network of all levels of cooperatives. The availability of quality seeds will help in increasing agricultural  productivity  in  strengthening  food  security  and  also  increasing  the  income  of  the farmers.

This  society  will  focus  on  production,  testing,  certification,  procurement,  processing,  storage, branding, labelling and packaging of all three generations of seeds i.e breeder, foundation and certified  through  PACS  by  leveraging  various  schemes  and  policies  of  different  ministries  of Government of India in a focused manner through 'Whole Government Approach'. This will also help  in  achieving  the  goal  of  'Sahakar-se-Samriddhi'  through  the  inclusive  growth  model  of cooperatives where the members would benefit both by realization of better prices by production of quality seeds, higher production of crops by use of High Yielding Variety (HYV) seeds and also by dividend distributed out of the surplus generated by the society.

Further, BBSSL, will also provide final price of products to members by distributing upto 50% of net surplus as per scheme given in clause 54 as under:-

- i. lnitial provisional price of the product(s) may be given to member(s) tentatively on the basis of prevailing market price of the product(s);
- ii. Net  surplus  shall  be  reckoned  as  the  difference  between  the  selling  price  and initial provisional price after deduction of all expenses incurred by the society on sale of such product(s);
- iii. The Society will endeavour to give up to 50% of net surplus to its member(s) for their  product(s)  as  may  be  decided  by  the  Board  and  the  member  may  pass  on such benefits to sourcing farmers; and
- iv. The final price of the product(s) payable to the member(s) shall be determined by the  Board  on  the  basis  of  initial  provisional  price  plus  the  part  of  net  surplus proposed to be paid under preceding sub-clause (iii).

(d): The  provisions  for  the  distribution  of  dividends  to  its  members  upto  20%  outlined  in Clause 55 and Clause 58. The details are given below:-

- i. The  General  Body  on  the  recommendations  of  the  Board  may  appropriate  the balance of net profit shall aim to pay dividend to members on their paid up share capital upto 20 percent. However, if owing to shortfall in the undistributed net profit in a year, the dividend could not be paid at the specified rate, the General Body may decide a lesser rate on which the dividend shall be paid to members.
- ii. The  dividend  declared  shall  be  paid  to  the  member  whose  name  stands  as registered  shareholder  in  the  books  of  the  Society  on  the  last  day  of  the  cooperative year to which the dividend relates.
- iii. Any dividend  remaining  unclaimed  for  three  years  after  having  been  declared may be forfeited by the Board and shall be carried to the Reserve Fund of the society.
- iv. Unpaid dividend shall be payable on application provided the same has not been forfeited.
- v. Dividend shall be proportionate to the amount paid on shares and the period in whole months for which the amount stood to the credit of the shareholder.

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