Indian Minister Harish Rawat stole the show at 9th Asia-Pacific Cooperative Ministers’ Conference in Bangkok. His presentation on the subject of cooperative and government was widely applauded.

Talking to Indian Cooperative.com from Bangkok NAFSCOB Managing Director Mr Bhima Subrahmanyam said that Bangkok conference has been a huge success given the free exchange of views among the participants. “Mr Rawat’s presentation was brilliant as it touched upon all the major issues plaguing cooperatives in present times” , he said.

Many cooperative leaders from India including NCUI President Dr Chandra Pal Singh Yadav and NAFED Chairman Bijender Singh are participating in the Ministers’ conference in Bangkok.

Dr Chandra Pal Singh who put forth his point of view through power point presentation was also quite impressive, added Mr Subrahmanyam. This conference was a step ahead of last conference which had taken place in Kuala lumpur, he added.

The Cooperative ministers of the Asia-Pacific countries, government officials, leaders of cooperative movement in the region along with top ICA officials including Dame Paulin Green and Charles Gold are also

The Conference would deliberate for three days on the way to productive collaboration between governments and cooperatives. Interestingly, with the initiative of ICA, uniform cooperative laws are in vogue in the regions of Africa, Latin America and Europe.

Transformation of the rural economy  is the paramount goal  of the government in Delhi  and this  can be accomplished only through the development of  a  network of cooperatives and self-help  groups in the country , said Union Minister  of road transport and highways C P Joshi  while inaugurating ‘Sahkari Samiti Bhawan’  in Bhilwara in Rajasthan.

The economic change in the countryside is critical to the existence of a strong Indian economy. It is on this philosophical basis that various public policies are being formulated, added the union minister.

The minister also called for social transformation including the gender  equality  for  grappling with  the  challenges that lie ahead of the country.

According to him , the country  can experience a great change if there is a  vibrant  cooperative movement  working in the  country.

India’s tax regime bristles with shortcomings and it greatly harms our interests.  The government should formulate new policies, said Jagmohan Taneja CEO Vaish Cooperative Adarsh bank while talking to the correspondent of Indian Cooperative.com in Delhi.

The government should not tax NPA until it is recovered. Ever since the cooperative banks have been taxed, their existence is in danger. The tax burden imposed on them needs to be reduced, added Mr Taneja.

Founded in 1964 Taneja said the Vaish bank has 10 branches, 42 thousand account holders, 2500 loan accounts and an annual profit of Rs.3 crore 62 lakh.

The bank has election every three years; the last election was held in November 2011.

According to Taneja, the Vaish Bank is aiming to grow further in 2012 the International Year of Cooperatives. The bank is fully computerized and soon planning to start its ATM service.

The jewel of cooperatives Amul has agreed to sponsor athletes participating in the 2012 London Olympic. Amul produces milk and cheese which are source of energy for the athletes and hence the sponsorship, declared GCMM Managing Director R S Sodhi  in a function at Delhi on Monday.

Amul signed a MoU with the Indian Olympic Association.The MoU was signed by Raja Randhir Singh, Secretary General, IOA and Member, International Olympic Committee and Mr. R S Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation (Amul). Prof. Vijay Kumar Malhotra, Acting President, Indian Olympic Association was also present.

Announcing Amul’s support for the Indian contingent to the London 2012 Olympic Games, Mr. R S Sodhi said that , “Amul is committed to strengthening the Olympic movement in India and encourage young generation from all corners of the country to take up Olympic sports. I take great pleasure and pride in announcing our sponsorship of the Indian contingent to the London 2012 Olympic Games as ‘Olympic Partner’.”

India is the largest producer of milk in the world and Amul is not only India’s but Asia’s largest milk brand. Further, he said that this association and activities around it will help in engaging the youth so that they can enjoy a healthy life and strive to become swifter, higher and stronger in their endeavours.

Amul has recently associated with sports events like Cricket World Cup and Formula 1 to engage the youth. Mr Sodhi mentioned that the Olympic Games have come to be regarded as the world’s foremost sports competition where more than 200 nations participate.

Lauding Amul’s support to the Indian Olympic contingent, Prof VK Malhotra, Acting President, IOA said that the sponsorship funds will be used for the athletes.

Raja Randhir Singh, Secretary General, IOA said, “I would like to congratulate Amul for flagging off its Olympic initiative today.” Mr Anil Khanna, Chairman, Finance Commission, IOC and also the Chairman of the Marketing Committee for London 2012 games too welcomed Amul’s association with the Indian contingent.

– Business Wire India

The 22nd death anniversary of freedom fighter and legendary leader of the Indian cooperative movement late Shri Tapeshwar Singh was observed in Delhi on Monday. His admirers had turned up in strength to remember and pay respects to their leader.

A large number of people associated with the cooperative movement attended the function. His family members were also present on the occasion.

The function began with paying of  floral tributes followed by a rendering of devotional songs. One of the leader’s grandsons accompanied the singer on tabla.

Talking to Indian Cooperative.com Shri Ranjit Singh, his son and a cooperator in his own right narrated his father’s tireless efforts to set up a web of cooperatives in the remote areas.

“He would leave early morning everyday  by cycle with  sattoo and travel far and wide motivating people to participate in the cooperative movement”, Ranjit said.

Tapeshwar Babu as he was fondly called by his followers, rose to the highest positions in the cooperative world. He was Chairman of NCCF, NAFED and was also the President of National Cooperative Union of India.

Ministers' Conference in Bangkok

Indian delegation led by Mr Harish Rawat, Minister of States (agriculture) along with the President of National Cooperative Union of India (NCUI) Dr Chandra Pal Singh Yadav,NAFED Chairman Bijender Singh and others have gone to participate in the 9^th Asia-Pacific Cooperative Ministers’ Conference in Bangkok on 27^th February.

The Cooperative ministers of the Asia-Pacific countries, government officials, leaders of cooperative movement in the region along with top ICA officials including Dame Paulin Green and Charles Gold are also present.

However, the Union Minister of India Sharad Pawar is conspicuous by his absence leading to other absentees such as delegates from the largest fertilizer cooperative IFFCO.

The Conference would deliberate for three days on the way to productive collaboration between governments and cooperatives. Interestingly, with the initiative of ICA, uniform cooperative laws are in vogue in the regions of Africa,Latin America and Europe.

Could something of that nature be possible in Asia-Pacific countries-is the focus of the Ministers’ Conference. This is a daunting task given the diversity of the region.

Even after 100 years of cooperative movement cooperatives in Asia continue to be offsprings of the respective governments. Many of them have become high maintenance non-performing assets, says the Conference Concept paper candidly.

The Concept paper further says that cooperative leadership has enjoyed unbridled powers without accountability and maintain the status-quo serves their interest best. In some cases where the cooperative law provides autonomy, the cooperatives have ended up becoming the fiefdom of a few.

In the name of pseudo-democracy, the elections are managed and same faces taking up leadership in rotation, and continue enjoying the benefits for years.

The vicious circle of “cooperative by the government for the unaccountable leadership of indifferent members” has left the real component-the member-far behind with no sense of belonging to the cooperative, Concept Paper adds.

Aware of such limitations Ministers’ Conference aims at goading governments to come up with enabling law and policy for operations and appropriate judicial safeguards for the cooperatives.

About 333 primary agricultural credit cooperatives in the state of Chhatisgarh have proved how noble the concept of cooperative could be. They are at the vanguard of distributing agricultural loans t of over Rs 181 crore to farmers since October 2011 to boost production of Rabi crops.

This loan is provided at a rate of 3 per cent annual. These credit cooperatives also offer seeds and other agricultural inputs to the farmers.

While Rs 21 crore has been distributed as agri loan in Raipur district, the amount stood at Rs 54 crore in Durg, Rs 14 crore in Mahasamund, Rs 16 crore in Rajanand and Rs 12 crore in Kabirdham.

Cooperative as a concept is hit in the states where the governments are serious about it. The Chief Minister of Chhattisgarh  Raman Singh deserves kudos for ushering in the era of cooperative movement in the states.

Fertiliser major IFFCO may fix the profit target for the next financial year at Rs 800 crore, lower than Rs 1,000 crore set for this year, due to various reasons, including uncertainty on subsidy front.

“Due to various factors, we are likely to scale down our profit target for the next financial year to Rs 800 crore, though the target this year is Rs 1,000 crore,” IFFCO Managing Director U S Awasthi told PTI in an interview in Bhuveneshwar.

The cooperative fertiliser giant would also refrain from pumping fresh investments, launching new projects and undertaking major expansion activities, diversification and acquisition due to fluid economic situation, he added.

However, the profit targeted during the current fiscal would certainly be met, Awasthi said, adding that IFFCO would also surpass the production target of 83 lakh tonnes of fertilisers by its five plants this year.

The turnover target of Rs 25,000 crore for 2011-12 would also be met by IFFCO, the fertiliser leader in the cooperative sector, he said after a visit to the IFFCO plant in Paradip.

Though production target is likely to be raised up to 85 lakh tonnes and turnover to Rs 26,000 crore for next fiscal, profit goal may have to be reduced due to several reasons including uncertainty over subsidy, he said.

Lamenting delay in formulation of a new comprehensive fertiliser policy, he said IFFCO is yet to get subsidies of Rs 12,000 crore which have been pending for a long time due to uncertainties in the absence of a clear policy.

Another reason for the possible decline in profit level is linked to apprehended foreign exchange loss due to highly fluid and volatile international economic scenario and recessionary trend, Awasthi added.
“I don’t think it is going to be a rosy situation globally. It is marked by uncertainties and slowdown,” he said describing the situation precarious for fertiliser sector.

Apart from sluggishness abroad, the domestic situation also remains bleak. The fertiliser sector in the country, particularly the urea industry, continues to be in a bad shape as the proposed new policy appears to have been pushed to the cold storage, Awasthi said.

He added that though it is a welcome move on the part of the government to shift fertiliser subsidy to ‘nutrient-based subsidy regime’ about two years ago, no concrete step has so far been taken to give it a real shape.

Seeking quick steps for decontrolling of the urea sector and introducing of direct subsidy to farmers, he said a nutrient-based subsidy policy would be encouraging and bring much needed succor to farmers as well as fertiliser industry.

Such a policy would assist in improving the soil health through balanced and integrated use of nutrients, including secondary and micro nutrients, he said.

It may be recalled that a Group of Ministers (GoM) last week  approved a new urea investment policy that promises incentives on natural gas price to fertiliser companies for reviving, expanding and setting up of new plants, to boost domestic production.

The country needs a new policy that can attract investment in the fertiliser sector, which is almost stagnant for over a decade. It would facilitate timely availability of fertiliser to the farmers and will reduce their imports.

On IFFCO’s fertiliser plant at Paradip, where a silo (cylindrical structure) had collapsed last week causing injury to some workers, Awasthi said a new one would come up very soon for which design has already been prepared.
Courtsey:PTI

A group of ministers (GoM) approved a new investment policy for the urea sector on Friday, to make the nation self-sufficient in the key soil nutrient.

The government in 2008 had announced a ‘New Investment Policy’ to boost urea production, but the scheme failed to attract fresh investments.

With demand-supply gap of urea widening, the government in 2010 decided to frame a new policy. Last year, a Committee of Secretaries (CoS), headed by Planning Commission Member Soumitra Choudhary, was set up for this purpose.

According to sources, the GoM, headed by Finance Minister Pranab Mukherjee, approved the policy as per the CoS recommendations.

In the draft policy, the CoS has suggested incentives for setting up of greenfield (new plants) and brownfield (expansion of existing plants) facilities.

At present, the country faces a shortfall of 7 million tonnes, which is met through imports. Domestic urea production is estimated at 22 million tonnes, while the consumption is pegged at 29 million tonnes.

The present shortfall of urea in the country counts 7 million tonnes and its production needs to be ramped up sooner than later. This explains why the govt has begun reviewing  its 2008 investment policy for the urea sector  in a bid to fashion a new investment policy.

The demand-supply gap has chronically bedeviled the urea sector and the govt seems determined to remedy the gap. It is against the backcloth of the  failure of the 2008 policy that the govt set up a Committee of secretaries to formulate  a fresh investment policy on urea.

Apparently the investment capital has been shy of the urea sector and its production has failed to match the country’s needs. Efforts are being made to put up a draft policy before the cabinet that passes muster.

The new investment policy among other things provides for differential IIPs. The production from revamped projects will be provided with 85 per cent of IPP subject to floor and ceiling prices.

Presently India produces 22 million tonnes of urea while it requires 29 million tonnes. The shortfall is being met through imports.

There is gloom marking the fertliser scene in the country. The performance of the sector has left a lot to be desired.The lack of fresh and adequate investment has been mainly responsible for its present plight. Cooperative institutions such as IFFCO and KRIBHCO are producing a major share with Iffco alone accounting for more than 25 percent of production in the country.

The govt paid subsidy of about Rs 33,500 crore on PK fertlisers in 2010-11 while it intends giving nearly Rs 30 thousand crore in the current fiscal year.

According to the informed sources, if approved by the cabinet the new investment policy will effect a profound change in the urea sector.