Cooperatives set up in '23 reap rural gains

A HUGE NETWORK OF AROUND 60K RURAL FINANCIAL CENTRES POWERS THE PUSH FOR A RURAL ECONOMY POWERED BY COOPERATIVES

- Zia Haq

Three national cooperatives established last year are becoming the pivot for India’s rural economy through exports, seed production and procurement of farm produce, review of their commercial activities show.The cooperation ministry headed by Amit Shah has modified laws, including the Multi-State Cooperative Act 2023, which has enabled cooperatives to expand operations to 22 new businesses, including running of petrol pumps.

“The new multistate cooperatives are projected to handle more than $1 billion worth of commerce and trade in the next five years,” an official said, seeking anonymity. For instance, the National Cooperative Export Ltd (NCEL) is extending a range of services to ramp up overseas shipments of organic produce.

The NCEL has connected connect the trade and foreign ministries and Indian embassies to boost market linkages and supply chains for export of farm produce, the official said. It will develop into a “complete export ecosystem”, covering procurement, storage, processing, marketing, branding, labelling, packaging and certification, a statement said. At least 50% of profits will go to farmers, according to its proposed business model.