NCEL to directly channel 50% of export profits to farmers: Amit Shah

New Delhi: Union Home Minister and Minister of Cooperation Amit Shah addressed the ‘National Symposium on Cooperative Exports’ organised by the National Cooperative Exports Limited (NCEL) in New Delhi today.

According to PIB statement issued here, Shah also released the logo, website and brochure of NCEL and distributed membership certificates to NCEL members.

On this occasion, several dignitaries including Union Minister of Commerce and Industry, Piyush Goyal and Union Minister of State for Cooperation BL Verma were present.

In his address, Amit Shah said that today the National Cooperative Export Limited is being formally launched on the auspicious day of Mahanavami.

He said that today we are crossing a very important milestone on the way to realize the vision of Sahkarita Se Samriddhi, for which the Ministry of Cooperation was established for the first time since independence by Prime Minister Narendra Modi.

He said that National Cooperative Export Limited (NCEL) was established after much deliberation with various objectives in mind.

He said that our goals behind setting up NCEL include increasing exports, especially agricultural exports, making farmers prosperous, changing crop patterns and enabling 2 crore farmers of the country to declare their land as natural by 2027.

Shah said that Prime Minister Modi has taken many initiatives to promote natural farming in the country.

 He said that PM Modi has formed a multistate cooperative society which will sell the organic products of more than 2 crore farmers of India practising natural farming in the global market with good packaging, reliable branding and high-quality certificates. With this, farmers will directly get about one and a half to two times the price of their organic products compared to what they are currently getting and this will open the way to prosperity for the farmers.

Union Home Minister and Minister of Cooperation said that a Biofuel Alliance has been announced by Prime Minister Narendra Modi.

He said that India is the only country where 4 crops can be grown simultaneously and if even one of these crops can be used for biofuel, then we can meet India’s biofuel needs and export it as well.

Shah said that another objective of setting up NCEL is to strengthen the cooperative sector in the country including rural areas and populations dependent on agriculture.

He said that agricultural products and products from the rural areas contribute 15 percent to the country’s GDP while 60 percent of the total population is dependent on them. No country can strengthen its economy by ignoring 60 percent of its population and an economy which does not have a place for 60 percent of the country’s population can never be successful.

 Shah said that the Modi government strives to increase the GDP while ensuring prosperity for these 60 percent people by providing them employment and the only way to do this is to strengthen the cooperative sector. He said that National Cooperative Export Limited will also work to strengthen the entire cooperative structure in the country.

Amit Shah said that NCEL is launched in the cooperative sector with 6 objectives of increasing exports, prospering the farmer, changing the crop pattern, providing a global market for organic products, gaining a place for India in the global market for biofuel and strengthening the cooperative sector. With this new beginning, the cooperative will act as a link between the farmers and the global demand for milk products, Isabgol (Psyllium), cumin, ethanol and a variety of organic products. He said that till now about 1500 cooperatives have become members of NCEL and it is expected that in the coming days, every tehsil will join it and become the voice of the farmers. Till now NCEL has received orders worth Rs 7,000 crore and orders worth Rs 15,000 crore are being negotiated. The Minister of Cooperation expressed confidence that in the coming days, like IFFCO, KRIBHCO and Amul, National Cooperative Export Limited will also prove to be a very big and successful cooperative venture.

Union Minister of Cooperation said that cooperatives account for 30% of our country’s total food production, 30% of sugar production and about 17% of milk production. He said that about 42 percent of the total finance provided to the farmers of the country is done through cooperatives. He said that the contribution of cooperatives in sugar production is 30% but in the export of sugar is merely one percent; the contribution of cooperatives in milk production is 17% while in the export of milk products, it is less than 2%.

Amit Shah said that today the profits from exports do not reach the farmers, but through National Cooperative Export Limited at least 50% of the export profits will go directly to the farmers.

He said that procurement will be done from the farmer at the Minimum Support Price (MSP) and then after the balance sheet of 6 months is prepared, 50 percent of the profit in addition to the payment made as per MSP, will go directly to the bank account of the farmer. This will also increase the enthusiasm of farmers towards increasing exportable production. He said that National Cooperative Export Limited will not focus only on profits, but focusing on the farmer will be its primary goal. He said that to increase exports, an export-oriented mindset will have to be nurtured in the farmers, the crop pattern will have to be changed and the entire system of branding, packaging and marketing will have to be created by spreading awareness among the farmers. National Cooperative Export Limited will have to set up this system, only then we will be able to move forward successfully towards achieving the 6 objectives.

Union Home Minister and Minister of Cooperation said that NCEL will become an organisation representing the entire cooperative sector and in the coming days, efforts will be made to develop it into a complete export ecosystem covering all aspects like procurement, storage, processing, marketing, branding, labelling, packaging, certification and research and development. He said that NCEL will also work on connecting with the Ministry of Commerce and Industry, Ministry of External Affairs and our embassies abroad with the Whole of Government Approach for market linkages. Apart from this, a design will be prepared by keeping Farmers Producers Organisations (FPOs) and Primary Agriculture Cooperative Credit Societies (PACS) together so that the production is as per the market demand.

Amit Shah said that the Modi government is working towards increasing exports as well as creating a smooth system to deliver its benefits to the farmers. He said that Prime Minister Modi has formed three multi-state cooperative societies – one for seed production at the national level, one for certification and branding of organic products and the third cooperative for export.