National Cooperative Exports Limited (NCEL)

What’s in Today’s Article?

• Why in News?
• What is National Cooperative Exports Limited (NCEL)?
• Significance of the NCEL
• News Summary Regarding Govt.’s Decision to Route Exports through NCEL

Why in News?

• Amid an export ban, the government has decided to route the sale of 12 lakh metric tonnes (LMT) of non-basmati white rice to 11 countries through National Cooperative Exports Limited (NCEL). 

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What is National Cooperative Exports Limited (NCEL)?

• The Ministry of Cooperation, Government of India, has set up a NCEL under Multi-State Cooperative Societies (MSCS) Act 2002.
• It is an umbrella body for cooperative sector exports and has an authorised share capital of Rs 2,000 crore, with Rs 500 crore as the initial paid-up share capital.
• It (NECL) covers agriculture and allied activities as well as handloom and handicraft items by enrolling a large number of co-operatives under its fold with a target to double its revenue by 2025 from the current Rs 2,160 crore.
• All cooperative societies from the level of primary to apex, who are interested in exports are eligible to become its member.
  • Its chief promoter is the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF). The other promoters are: IFFCO, KRIBHCO, NAFED, and NCDC.
• This society will focus on exporting the surpluses available in the Indian cooperative sector by accessing wider markets beyond the geographical contours of the country.

Significance of the NCEL

• It will help in increasing the demand of Indian Cooperative products/services across the globe and fetch best possible prices for such products/services.
• It will promote exports through various activities including –
  • Procurement, storage, processing, marketing, branding, labelling, packaging, certification, R&D, etc., and
  • Trading of all types of goods and services produced by cooperative societies.
• The society will –
  • Help in arranging finance, provide technical guidance,
  • Help in training and capacity building,
  • Develop and maintain market intelligence systems, and
  • Implement related government schemes which will increase exports from the cooperative sector.
  • Promote “Make in India” and led to ‘Atmanirbhar Bharat’.
  • Help in achieving the goal of “Sahakar-se-Samriddhi” through the inclusive growth model of Cooperatives.
• This society will also help cooperatives in getting benefits of various export related schemes and policies in a focussed manner through ‘Whole of Government Approach’.

News Summary Regarding Govt.’s Decision to Route Exports through NCEL

• India’s rice exports are broadly categorised into two categories – basmati and non-basmati.
  • The non-basmati category includes 6 subcategories – rice in husk of seed quality; other rice in husk; husked (brown) rice; rice parboiled; non-basmati white rice; and broken rice.
  • From April to August this year, which includes the period of the export ban, India exported 19.74 lakh metric tonnes of non-basmati white rice, 9.6% lower than 21.86 LMT in the same period last year.
  • In the 2022-23 fiscal (April-June), India exported 177.86 LMT of non-basmati rice, of which 63.98 LMT was non-basmati white rice.
• Recently, the Directorate General of Foreign Trade (DGFT) approved the export of 12.52 LMT through NCEL to UAE, Bhutan, Mauritius, Singapore, Nepal, Cameroon, Côte d’ Ivoire, Republic of Guinea, Malaysia, Philippines and Seychelles.
• Export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their government.

Q1) What is the mandate of the Ministry of Cooperation?

The Ministry of Cooperation was constituted in 2021 with a mandate to strengthen cooperative movement in the country and deepening its reach up to the grassroots.

Q2) What is the role of the Directorate General of Foreign Trade (DGFT)?

DGFT is responsible for formulating and implementing India’s Foreign Trade Policy. It works to promote exports of Indian goods and services and ease imports by issuing import licenses and permits.

Source: Govt routes sale of non-basmati white rice to 11 nations via NCEL