1 Present policy of Govt of India to develop coops

2 Overview ♦ Cooperatives in existence for more than 100 years ♦ Spread throughout the length and breadth of the country ♦ Covering a variety of sectors ♦ Overwhelmingly present in agriculture & allied sectors ♦ Cooperatives’ contribution substantial – ♦ Agricultural credit 48% ♦ Fertiliser distribution 38% ♦ Textiles54% ♦ Sugar production50% - To name a few

3 ♦ Focus largely on credit cooperatives, both short term and long term. ♦ In the first 5 decades, preoccupation solely with credit cooperatives. ♦ Importance of post harvest management realised in the mid- fifties. ♦ Storage capacity including cold storage created. ♦ Marketing cooperatives were organised. ♦ Processing of sugar, cotton, paddy, dal, oilseeds taken up. ♦ Processing of fruits – to a small extent. ♦ Focus on credit continued. Overview (contd..)

4 NCDC MANDATE NCDC WAS SET UP IN MARCH 1963 FOR PLANNING AND PROMOTING COUNTRYWIDE PROGRAMMES OF COOPERATIVE ACTIVITIES, ON COOPERATIVE PRINCIPLES, FOR PRODUCTION, PROCESSING, MARKETING, STORAGE, EXPORT & IMPORT OF –AGRICULTURAL PRODUCE –FOODSTUFFS –FISHERY, POULTRY, SERICULTURE, HANDLOOMS, DAIRY, SC/ST COOPERATIVES (1974) –NOTIFIED COMMODITIES –NOTIFIED SERVICES (2002) - AGRI-CREDIT, LABOUR COOPS. ETC. –INDUSTRIAL GOODS (2002) - SMALL SCALE INDUSTRIES –LIVESTOCK (2002)

5 FUNDING CHANNELS NCDC THROUGH STATE GOVERNMENT +VE NETWORTH & CASH PROFIT IN THE PRECEEDING 3 YEARS COOPS. IN STATES/ UTs. DIRECT* * DIRECT FUNDING INTRODUCED W.E.F POST NCDC ACT AMENDMENT

6 MAJOR ACTIVITIES ASSISTED BY NCDC AS ON AGRO-PROCESSING No. of Coops./ Units Assisted Sugar373 Spinning308 Oilseeds153 Foodgrains 707 (Rice mills, Dal Mills Roller floor mills etc.) Plantation Crops 89 (Rubber, Tea, Coffee, Cashew etc.) Fruits & Vegetables 54 STORAGE Godowns ( No. ) Cold Storage (No. ) 262 MARKETING & INPUTS 9624

7 MAJOR ACTIVITIES ASSISTED BY NCDC AS ON CONTD…. No. of Coops./Units Assisted CONSUMER COOPERATIVES GINNING & PRESSING 82 POWERLOOMS 461 HANDLOOMS 3530 COIR 421 JUTE 184 SERICULTURE 122 POULTRY, DAIRY & LIVESTOCK 316 FISHERIES COOPERATIVES 9261 SC/ST COOPERATIVES INDUSTRIAL COOPERATIVES 12 SERVICE COOPERATIVES 19 ICDP 215

8 ACTIVITY-WISE CUMULATIVE DISBURSEMENTS AS ON

9 SANCTIONS & DISBURSEMENTS (Rs in millions) Year Sanctions Disburs- ements

10 SCHEMES & PURPOSES OF LENDING  MULTI-PRONGED APPROACH: AREA-BASED, ACTIVITY-SPECIFIC, COMMODITY-FOCUSED, TARGET - ORIENTED SCHEMES (e.g. WEAKER PROGRAMMES LIKE SC/ST, FISHERY, POULTRY, DAIRY & LIVESTOCK)  WIDE CANVAS OF ACTIVITIES: FOOD CROPS, CASH CROPS, PLANTATION CROPS, AGRO-INPUTS, AGRO-ALLIED, NON-FARM SUPPORT SERVICES INCLUDING INTEGRATED PROJECTS ETC.  WIDE COVERAGE OF COOPERATIVES: FROM PRIMARY TO NATIONAL LEVEL COOPERATIVES  WIDE RANGE OF FINANCIAL SUPPORT: PROJECT FUNDING, MARGIN MONEY AND WORKING CAPITAL

11 SCOPE OF FINANCIAL ASSISTANCE

12 ACTIVITIES ASSISTED MARKETING & INPUTS MARGIN MONEY AND WORKING CAPITAL ASSISTANCE STRENGTHENING SHARE CAPITAL BASE OF COOPERATIVES PURCHASE OF TRANSPORT VEHICLES AGRI-INPUTS MANUFACTURING UNITS AGRO-SERVICE CENTRES

13 ACTIVITIES ASSISTED PROCESSING –SUGAR FACTORIES NEW, EXPANSION, MODERNIZATION, BY-PRODUCTS –SPINNING MILLS (GROWERS’ & WEAVERS’) MARGIN MONEY ASSISTANCE SETTING UP OF YARN TESTING LABORATORIES MODERNIZATION, EXPANSION AND BY-PRODUCT REHABILITATION –POWERLOOM COOPERATIVES FOR PRE AND POST LOOM FACILITIES –OTHER PROCESSING UNITS OILSEEDS / COTTON GINNING AND PRESSING / FOODGRAINS / PLANTATION CROPS / FRUITS & VEGETABLES / MAIZE STARCH / PARTICLE BOARD ETC Contd….

14 INDUSTRIAL AND SERVICE COOPERATIVES –SMALL SCALE VILLAGE AND COTTAGE INDUSTRIES –AGRI-CREDIT –LABOUR COOPERATIVES –OTHER NOTIFIED SERVICES STORAGE –GODOWNS –REPAIR / UPGRADATION / RENOVATION OF EXISTING GODOWNS –COLD STORAGE DISTRIBUTION OF ESSENTIAL ARTICLES THROUGH COOPS –DISTRIBUTION OF CONSUMER ARTICLES –STUDENT CONSUMER STORES –WHOLESALE CONSUMER STORES ACTIVITIES ASSISTED Contd….

15 DISTRICT BASED SCHEMES –INTEGRATED COOPERATIVE DEVELOPMENT PROJECTS (ICDP) IN SELECTED DISTRICTS EQUIPMENT FINANCING SCHEME –FOR PURCHASE OF EQUIPMENT, MACHINERY RELATING TO VALUE ADDITION, MODERNIZATION, BALANCING, REPLACEMENT, ENERGY SAVING, QUALITY CONTROL ETC., NOT RELATED TO ANY SPECIFIC PROJECT COOPERATIVES OF WEAKER SECTIONS –FISHERY / DAIRY / POULTRY/TRIBAL / SCHEDULED CASTE / HANDLOOM / COIR / SERICULTURE COOPERATIVES ASSISTANCE FOR COMPUTERISATION Contd…. ACTIVITIES ASSISTED

16 PROMOTIONAL AND DEVELOPMENTAL PROGRAMMES –TRAINING AND EDUCATION PROJECT RELATED TRAINING IN TOPIC STUDY VISITS FELLOWSHIPS / SCHOLARSHIPS –CONSULTANCY FOR FEASIBILITY STUDIES /PROJECT REPORTS ORGANIZATION STUDIES MARKETING SURVEYS EVALUATION OF PROGRAMMES ETC ESTABLISHMENT OF TECHNICAL & PROMOTIONAL CELLS ACTIVITIES ASSISTED Contd….

17 CATEGORISATION OF STATES* FOR NCDC ASSISTANCE

18 QUANTUM OF ASSISTANCE

19 ACTIVITIES ASSISTED WITH CAPITAL SUBSIDY u COOPERATIVELY UNDER/LEAST DEVELOPED STATES/UTs – 20%- 25% SUBSIDY FOR MARGIN MONEY & INFRASTRUCTURE CREATION ETC. 100% GRANT FOR MARKET SURVEYS/MANAGEMENT AND FINANCIAL STUDIES/IMPACT STUDIES ETC. SUBSIDY FROM 100% TO 70%, ON TAPPERING BASIS, IN RESPECT OF T&P CELLS u ICDP- SUBSIDY AS ABOVE SUBJECT TO MAXIMUM OF 30% EXCEPT T&P CELLS u REHABILITATION OF SICK COOPERATIVE SPINNING MILLS – 20% SUBSIDY OF THE COST OF PLANT & MACHINERY SUBJECT TO CEILING OF RS.5 CRORE PER MILL. u MODERISATION OF EXISTING & ESTABLISHMENT OF MODERN GINNING & PRESSING UNITS- 10% SUBSIDY OF THE BLOCK COST. u COTTON DEVELOPMENT – OUTRIGHT GRANT WITH A CEILING OF RS. 1 CRORE PER UNIT FOR A PERIOD OF 5 YEARS.

20 ACTIVITIES ASSISTED WITH CAPITAL INVESTMENT (BACK ENDED) SUBSIDY STRENTHENING OF AGRICULTURE MARKETING INFRASTRUCTURE, GRADING & STANDARDIZATION 25% OF CAPITAL COST WITH A CAP OF RS.0.50 CRORE PER PROJECT % OF CAPITAL COST IN CASE OF N.E. STATES, HILLY & TRIBAL AREAS AND SC/ST COOPERATIVES WITH A CAP OF RS.0.60 CRORE PER PROJECT. GRAMIN BAHANDARAN YOJANA – 33.33% OF CAPITAL COST IN N.E. STATES, HILLY AREAS AND SC/ST COOPERATIVES SUBJECT TO A CAP OF OF RS.0.50 CRORE PER PROJECT. 25% OF CAPITAL COST FOR OTHER STATES AND CATEGORIES SUBJECT TO A CAP OF RS LAKH PER PROJECT. 25% OF CAPITAL COST FOR RENOVATION OF GODOWNS OF COOPERATIVES.

21 THANK YOU PRESENTNCDC- ICA