The Ministry of Cooperation has set up Bhartiya Beej Sahkari Samiti Limited (BBSSL) under the Multi-State Cooperative Societies (MSCS) Act, 2002. This initiative aims to boost the production, procurement, and distribution of quality seeds in India.
Promoters and Capital
BBSSL is promoted by five major cooperative organizations:
- Indian Farmers Fertiliser Cooperative Limited (IFFCO)
- Krishak Bharati Cooperative Limited (KRIBHCO)
- National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)
- National Dairy Development Board (NDDB)
- National Cooperative Development Corporation (NCDC)
The initial paid-up capital of BBSSL is Rs. 250 Crore, with each promoter contributing Rs. 50 Crore. The authorized share capital stands at Rs. 500 Crore.
Objectives and Functions
BBSSL aims to enhance crop yield and promote indigenous seeds through the following:
- Production: Focusing on foundation and certified seeds.
- Procurement and Distribution: Ensuring quality seeds reach farmers via a cooperative network.
- Preservation and Promotion: Developing systems for indigenous seeds.
- Increasing Seed Replacement Rate: Ensuring farmers’ involvement in producing certified seeds.
Activities
BBSSL will undertake various activities including:
- Production, testing, certification, procurement, processing, storage, branding, labeling, and packaging of seeds.
- Sourcing breeder seeds from public sector research organizations and international research institutes (e.g., ICRISAT, IRRI, CIMMYT).
- Leveraging various government schemes and policies.
Impact
BBSSL will:
- Reduce dependence on imported seeds.
- Enhance agricultural production.
- Boost the rural economy.
- Promote “Make in India” and lead to Atmanirbhar Bharat (self-reliant India).
Provisions in Byelaws
Clause 55 of BBSSL’s byelaws outlines the provisions for the disposal of net profits as follows:
- Mandatory Appropriations:
- Transfer at least 25% of net profit to the reserve fund.
- Credit 1% of net profit to the cooperative education fund.
- Transfer at least 10% of net profit to a reserve fund for unforeseen losses.
- General Body Recommendations: After the mandatory appropriations, the General Body, based on the Board of Directors’ recommendations, may use the remaining net profit for:
- Paying dividends up to 20% on paid-up share capital.
- Contributing to the education fund for regular training of members, directors, and employees.
- Donating for cooperative development or charitable purposes.
- Paying ex-gratia amounts to employees.
- Creating other necessary funds.
- Adding any undistributed profit to the Reserve Fund.
- Equitable Distribution: The Board or General Body must ensure an equitable distribution of net surplus and dividends to maintain transparency and prudence.
Multiple Choice Questions (MCQs):
- What is the initial paid-up capital of BBSSL?
- a) Rs. 100 Crore
- b) Rs. 250 Crore
- c) Rs. 500 Crore
- d) Rs. 1000 Crore
- Which of the following is NOT a promoter of BBSSL?
- a) IFFCO
- b) NAFED
- c) National Horticulture Board
- d) KRIBHCO
- What percentage of net profit is transferred to the reserve fund for unforeseen losses?
- a) 1%
- b) 10%
- c) 25%
- d) 20%
- Which clause of BBSSL’s byelaws outlines the provisions for the disposal of net profits?
- a) Clause 50
- b) Clause 55
- c) Clause 60
- d) Clause 65
- From where will BBSSL source breeder seeds?
- a) Private sector companies
- b) Public Sector Research Organizations and International Research Institutes
- c) Local farmers
- d) Foreign companies