Why in news?
The National Federation of Cooperative Sugar Factories Ltd. (NFCSF) recently appealed to the central government for support following a sharp decline in sugar prices. The demand for intervention has put a spotlight on the organisation’s role in safeguarding the interests of cooperative sugar mills across India.
Background
NFCSF was formed on 2 December 1960 to strengthen India’s cooperative sugar sector. It started with around thirty member factories and has since grown to represent hundreds of cooperative sugar mills. Initially registered under the Bombay Cooperative Societies Act 1925, it later came under the Delhi Cooperative Societies Act 1972, the Multi State Cooperative Societies Act 1984 and, since 2002, the Multi State Cooperative Societies Act 2002. The federation is governed by an elected board consisting of representatives from state sugar federations and cooperative factories.
Functions and activities
- Policy advocacy: NFCSF participates in framing sugar policies at national and state levels. It acts as a collective voice for cooperative mills when negotiating production quotas, pricing mechanisms and export policies.
- Technical services: The federation provides techno‑commercial services to member mills, including assistance with modernising factories, adopting efficient technologies and implementing quality control measures.
- Capacity building: NFCSF organises training programmes, seminars and study tours to enhance managerial and technical skills among employees of cooperative mills.
- International collaboration: It facilitates knowledge exchange and cooperation with sugar industries abroad to help members keep pace with global best practices.
Significance
- Supporting farmers: Cooperative sugar mills are owned by farmers themselves. Through NFCSF, these farmers have a platform to influence sugar policies and secure fair returns for their produce.
- Stabilising the sugar industry: By coordinating production and advocating for supportive policies, NFCSF helps prevent oversupply and price crashes, contributing to stability in the sugar market.
- Promoting cooperatives: NFCSF demonstrates the potential of cooperative enterprises to sustain large industrial operations while distributing benefits among members rather than private shareholders.
Conclusion
The National Federation of Cooperative Sugar Factories plays a pivotal role in India’s sugar economy. Its recent call for government intervention highlights the challenges of volatile commodity markets and underscores the need for robust cooperative institutions to protect farmers and consumers alike.
Source: NOA
