Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

In news: National Export Co-operative Society

Note4Students

From UPSC perspective, the following things are important :

Prelims level : National Export Co-operative Society

Mains level : Not Much

The first consignment expected to be exported by the first-ever National Export Co-operative Society.

Why in news?

  • The Union Cabinet on January 11 approved the setting up Multi-State Seed Society, Multi-State Organic Society and Multi State Export Society.

What is National Export Co-operative Society (NECS)?

  • The society will have an authorised share capital of ₹2,000 crore with the area of operation all over the country.
  • It will be registered under the Multi-State Cooperative Societies (MSCS) Act, 2002.
  • It will have its registered office in Delhi.
  • The Society’s registration will be complete in the next few days and the first consignment will be exported in three months.
  • It will work as an export house for handicrafts, handlooms, khadi and other products, ensuring enhancement of income of the cooperative member entrepreneurs.

Funding of NECS

  • Leading cooperatives like IFFCO, KRIBHCO, NAFED, Amul and National Cooperative Development Corporation (NCDC) will be the promoters of the Society.
  • They will contribute ₹100 crore each.

Working of NECS

  • The Society will be different from the Export Promotion Council under the Ministry of Commerce.
  • This Society will provide end-to-end services to the cooperatives.
  • It will open foreign bank accounts and complete all the formalities, including necessary permissions for exporting a product.
  • The dividends will be shared with the manufacturer instantly and without any brokerage fee.
  • The Society will hire consultants in foreign countries who will help expand its footprint across continents.

Why need cooperatives for export promotion?

  • Cooperatives contribute 28.80% in fertilizer production, 35% in fertilizer distribution, 30.60% in sugar production and 17.50% in milk in the national economy.
  • However, their contribution to exports is negligible.
  • Society will benefit the smallest of farmer or artisan who has a good product but does not have access to the right platform.
  • Through this Society, they will get access to international market and good returns too.
  • Once a product has been tested for international standards, the packaging and export will be done by the Society.

 

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