Lok Sabha Question No. 266 (UNSTARRED), answered on 2023-12-05
Subject: Seed Cooperative Society
Ministry: COOPERATION
Asked by: Dr. T. Sumathy (a) Thamizhachi Thangapandian

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 266 TO BE ANSWERED ON 05/12/2023

## Seed Cooperative Society

## 266. DR. T. SUMATHY (a) THAMIZHACHI THANGAPANDIAN:

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

- (a) the details of the criteria for membership in the Seed Cooperative Society;
- (b) whether there are any mechanisms  in place for monitoring and evaluating the performance and impact of the seed cooperative society; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF COOPERATION सहकाįरता मंũी (SHRIAMIT SHAH)

(a): Ministry of Cooperation has set up Bhartiya Beej Sahkari Samiti Limited under the MultiState  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.

(b)  to  (c):  Yes  Sir,  as  per  bye  laws  of  the  BBSSL,  the  following  mechanism  is  in  place  for monitoring and evaluating the performanceand impact of the society:-

- i. During  the  Annual  General  Meeting  (AGM),  the  society  shall  scrutinize  the  actual utilization  of  reserves  and  other  funds,  and  review  the  annual  report  and  accounts  of subsidiary institutions of the society.
- ii. The Society shall at each Annual General Meeting (AGM), appoint an auditor or auditors as per provisions contained in MSCS Act, 2002. The auditor shall present the report at each annual general meeting.
- iii. Central  Government  may  at  any  time  by  order  direct  a  special  audit  of  the  society's accounts. Upon receiving the report, the Central Government may undertake any necessary actions in accordance with the provisions of the MSCS Act or any other prevailing laws.
- iv. The  audit  report  of  the  accounts  of  the  BBSSL  shall  be  laid  before  each  House  of Parliament.

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