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National Cooperative Export Limited (NCEL) and Its Impact

A New Era for Organic Exports in India

National Cooperative Export Limited (NCEL) and Its Impact

  • 02 Nov, 2023
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Introduction to National Cooperative Export Limited (NCEL)

The National Cooperative Export Limited (NCEL) represents India's inaugural multi-state cooperative society dedicated to exports. Its primary aim is to champion the country’s organic products while ensuring that farmers benefit significantly by sharing half of its returns with them. Through this initiative, NCEL seeks to offer a global marketplace for organic goods.

Boosting Overseas Shipments of Organic Produce

To enhance the overseas shipment of organic produce, the NCEL will provide various services designed to improve market linkages and streamline supply chains. By connecting relevant ministries and Indian embassies, the NCEL aims to facilitate smoother transactions and export processes for organic products.

Establishment of NCEL and Future Plans

The establishment of the NCEL has been formalized through legislative action by Parliament. The Union government is also planning to create two additional multi-state cooperatives: one focused on promoting seed businesses and another dedicated to enhancing organic farming practices across the country.

Constitutional Framework for Cooperatives

The constitutional basis for the Centre's role in cooperatives like the NCEL is grounded in the Seventh Schedule of the Indian Constitution. This schedule delineates responsibilities between the Centre and the states. While state governments manage cooperatives, the Centre oversees policy-making for multi-state cooperatives that function across various regions.

Vision Behind NCEL and the Ministry of Cooperation

The establishment of the NCEL, along with the Ministry of Cooperation, aligns with the broader vision of “Sahkarita Se Samriddhi” or progress through cooperation. This initiative is aimed at modernizing and enhancing the cooperative sector in India, creating a more robust framework for agricultural and economic growth.

Frequently Asked Questions (FAQs)

Q1. What is the primary objective of the National Cooperative Export Limited (NCEL)?
Answer: The NCEL's primary objective is to promote India's organic products and share half of its returns with farmers, providing them with a global platform for their produce.

Q2. How does NCEL plan to enhance overseas shipments of organic produce?
Answer: NCEL will offer various services to improve market linkages and supply chains, connecting relevant ministries and Indian embassies to support overseas shipments.

Q3. What are the future plans for cooperatives by the Modi government?
Answer: The government plans to establish two additional multi-state cooperatives focused on promoting seed businesses and enhancing organic farming practices in India.

Q4. What is the constitutional basis for the Centre's control over cooperatives?
Answer: The Centre's involvement is based on the Seventh Schedule of the Constitution, allowing it to oversee policy-making for multi-state cooperatives while state governments manage local cooperatives.

Q5. What is the vision behind the establishment of NCEL?
Answer: The vision is encapsulated in the phrase “Sahkarita Se Samriddhi,” aiming to modernize and strengthen the cooperative sector for sustainable growth in India.

UPSC Practice MCQs

Question 1: What is the primary purpose of the National Cooperative Export Limited (NCEL)?
A) To promote organic products
B) To regulate agricultural policy
C) To manage state cooperatives
D) To increase urban exports
Correct Answer: A

Question 2: How does NCEL plan to support farmers?
A) By increasing taxes on exports
B) By sharing half of its returns with them
C) By limiting organic product availability
D) By promoting non-organic products
Correct Answer: B

Question 3: What is the constitutional framework for multi-state cooperatives in India?
A) Complete state control
B) Central control over policy-making
C) No legal framework exists
D) Local governance only
Correct Answer: B

Question 4: What does “Sahkarita Se Samriddhi” mean?
A) Prosperity through competition
B) Progress through cooperation
C) Growth through capitalism
D) Development through technology
Correct Answer: B

Question 5: Which ministry is associated with the establishment of NCEL?
A) Ministry of Finance
B) Ministry of Agriculture
C) Ministry of Cooperation
D) Ministry of Commerce
Correct Answer: C

Question 6: What additional cooperatives is the government planning to create?
A) For dairy and textile industries
B) For seed businesses and organic farming
C) For technology and digital services
D) For financial and banking services
Correct Answer: B

Question 7: Who manages state-level cooperatives in India?
A) Central government
B) Local self-governments
C) State governments
D) Private organizations
Correct Answer: C

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