“Member cooperatives are being strengthened through structured financial returns and operational support,” Union Home and Cooperation Minister Amit Shah said in a written reply in the Rajya Sabha, outlining benefits available under the National Cooperative Exports Limited (NCEL) and Bharatiya Beej Sahakari Samiti Limited (BBSSL).
As per the bye-laws of NCEL, member cooperatives are eligible to receive dividends from the society’s net profits. Clause 55(2)(a) allows dividend payments of up to 20 per cent on paid-up share capital, subject to statutory appropriations and approval by the General Body based on the Board’s recommendation. Clause 58 further details the process for dividend distribution, including eligibility norms and provisions for handling unpaid dividends, ensuring transparency and accountability in financial returns.
In contrast, BBSSL adopts a broader benefit structure that extends beyond dividends, focusing on operational incentives and farmer support. Member cooperative societies engaged in seed production, processing and marketing are entitled to service charges, providing a steady income stream linked to their participation in the value chain.
A key feature of BBSSL’s model is its procurement policy, which ensures better price realisation for producers. Seeds are procured at the highest among three benchmarks—Minimum Support Price (MSP) plus 10 per cent, the price fixed by State Seed Corporations, or the prevailing mandi model price. This pricing mechanism is aimed at safeguarding farmer interests and promoting quality seed production.
Further, BBSSL provides marketing advantages to its member cooperatives. No security deposit is required, reducing entry barriers, while a trade margin ranging from 10 to 18 per cent is offered, enhancing profitability for participating societies. These measures are designed to strengthen cooperative-led distribution networks.
The organisation also invests in capacity building, offering free training, education and technical guidance to farmers on scientific seed production, crop agronomy and best agricultural practices. This focus on knowledge dissemination is expected to improve productivity and quality standards in the long term.
However, BBSSL does not currently extend additional monetary incentives or bonus schemes directly to individual farmers, relying instead on price support and institutional benefits.