National Cooperative Exports Limited (NCEL)

Context:

The Ministry of Cooperation has established the National Cooperative Exports Limited (NCEL) to enhance exports from the cooperative sector under the Multi-State Cooperative Societies (MSCS) Act, 2002.

National Cooperative Exports Limited (NCEL)

National Cooperative Exports Limited (NCEL) has been set up as an umbrella organization under the MSCS Act, 2002 by the Ministry of Cooperation.
Its primary objective is to promote and facilitate exports of products and services produced by cooperative societies across India by accessing international markets.
NCEL aims to maximize realization for cooperative producers by improving branding, processing, certification, packaging, labelling, and storage standards.
It will also facilitate finance, offer technical support, develop market intelligence, and implement government schemes related to exports.
NCEL is empowered to undertake procurement, trading, research and development, and capacity building to enhance global competitiveness of Indian cooperative goods and services.
Eligibility for membership includes:
- Any Multi-State Cooperative Society, or
- Any State-registered Cooperative Society under applicable laws of States or Union Territories.

Multi-State Cooperative Societies (MSCS):

Key Provisions and Developments

Statutory Framework
- Multi-State Cooperative Societies (MSCS) are governed by the MSCS Act, 2002, and rules made under it.
- Societies function autonomously and are accountable to their members, as per their approved bye-laws.
Digitisation& Green Governance
- A digital portal for the Central Registrar of Cooperative Societies (CRCS) was launched on 06 August 2023.
- Section 120A of the Act (inserted via 2023 amendment) allows for electronic filing, inspection, and application processes.
- Objective: Promote paperless regulation, improve efficiency, and support a green environment.
Access to Financial Resources
- Co-operative Rehabilitation, Reconstruction and Development Fund (CRRDF) established under Section 63A of the Act.
- Purpose: Revival of sick MSCSs and development support.
- Funding: Profitable MSCSs must contribute ?1 crore or 1% of net profit annually, whichever is less.
Capital Base Expansion – Non-Voting Shares
- MSCS (Amendment) Act, 2023 introduced provision for non-voting shares.
- Such shares do not confer voting rights or board participation, but enable capital infusion without management control.
- Helps MSCSs raise funds while maintaining cooperative character.