Central

Section 2 of The National Co-operative Development Corporation Act, 1962

In this Act, unless the context otherwise requires,-- 1[(a) "agricultural produce" includes the following:--

(i)edible and non-edible oil seeds;
(ii)cattle feed, including oilcakes and other ingredients;
(iii)produce of horticulture and animal husbandry;
(iv)produce of forestry;
(v)produce of poultry farming;
(vi)produce of pisciculture; and
(vii)produce of other allied activities, whether or not undertaken jointly with agriculture;] 2[(aa) “bank” means a nationalised bank and includes a scheduled bank;

(ab)“Board” means the Board of Management of the Corporation constituted under section 10;] 3[(aba) "Central financing institution" means Industrial Development Bank of India established under sub-section (1) of section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964) or the Industrial Finance Corporation of India Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), or the Industrial Credit and Investment Corporation of India Limited, a Company formed and registered under the Indian Companies Act, 1913 (7 of 1913);] 4[(b) "Central Warehousing Corporation" means the Central Warehousing Corporation established under sub-section (1) of section 3 of the Warehousing Corporations Act, 1962 (58 of 1962);
(c)"co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912) or under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) or under any other law with respect to cooperative societies for the time being in force in any State, which is engaged in any of the activities specified in sub-section (1) of section 9 and includes a Co-operative Land Development Bank, by whatever name called;]
(d)"Corporation" means the National Co-operative Development Corporation established under 5[sub-section (1) of section 3]; 6[(da) "foodstuffs", include--
1. (i)coconuts and areca-nuts;
2. (ii)eggs and egg products;
3. (iii)fish, whether fresh, frozen, dried or preserved;
4. (iv)fruits, whether fresh, dried or dehydrated;
5. (v)honey;
6. (vi)meat, whether fresh, frozen, dried or preserved;
7. (vii)milk and milk products;
8. (viii)vegetables;
(db)"General Council" means the General Council of the Corporation constituted under sub-section (4) of section 3; 7[(dba) "industrial goods" means the products of industrial co-operatives or cottage and village industries or products of allied industries in the rural area and includes any handicrafts or rural crafts;
(dbb)"livestock" includes all animals to be raised for milk, meat, fleece, skin, wool and other byproducts;]
(dc)"Managing director" means the managing director of the Corporation; 8[(dd) "nationalised bank" means a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);]]
(e)"notified commodity" means any commodity (other than agricultural produce 2 [and foodstuffs]) which the Central Government may, by notification in the Official Gazette, declare to be a notified commodity for the purposes of this Act, being a commodity with respect to which Parliament has power to make laws by virtue of entry 33 in List III in the Seventh Schedule to the Constitution; 7[(ea) "notified services" means any service which the Central Government may, by notification in the Official Gazette, declare to be notified services for the purposes of this Act;]
(f)"prescribed" means prescribed by rules made under this Act;
(g)"Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934); 6[(ga) "scheduled bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);] 9[(h) “State Bank” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955)or any of the subsidiary banks of the State Bank of India;
(ha)"State Co-operative Bank" has the same meaning as in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);]
1. (i)"year" means the financial year.

Summary

The section defines key terms used in the Act to make sure everyone understands them in the same way.
It defines agricultural produce to include things like seeds, cattle feed, plants, animals, trees, poultry, pisciculture (which is fish farming), and other related activities.
It defines a co-operative society as a group registered under cooperative laws that is actively doing the work described in Section 9(1) of the Act.
It defines foodstuffs to include everyday food items like coconuts, eggs, fish, fruits, honey, meat, milk, and vegetables.
It defines a notified commodity as any item other than food or farm produce that the government officially names in its Gazette (the government newspaper) for this Act.
It defines year as the financial year, and livestock as any animals raised for milk, meat, wool, skin, or other byproducts.

Practical examples

1Ramesh runs a commercial fish farm in Kerala. When he applies for cooperative support, the agency checks Section 2 of the National Co-operative Development Corporation Act, 1962. Since Section 2(a)(vi) defines "agricultural produce" to include pisciculture (fish farming), his society's fish production activities qualify for support under the Act.

2An organisation called the Malabar Honey Producers Co-operative wants to know if honey is covered. The local cooperative registrar points to Section 2(da)(v) of the National Co-operative Development Corporation Act, 1962, which explicitly lists "honey" under the definition of "foodstuffs", making them eligible for promotional benefits.

FAQ

1. What does the term "year" mean under this Act?

Under the Act, "year" means the financial year.

2. What animals are included under "livestock" in this Act?

"Livestock" includes all animals raised for milk, meat, fleece, skin, wool, and other by-products.

3. What does "prescribed" mean in the context of this Act?

"Prescribed" means prescribed by rules made under this Act by the Central Government.

4. What is a "scheduled bank" according to this law?

It means a bank that is included in the Second Schedule to the Reserve Bank of India Act, 1934.

5. Are forestry products considered "agricultural produce" under this Act?

Yes, Section 2(a)(iv) explicitly includes the produce of forestry in the definition of agricultural produce.

Test yourself

Q1.Under Section 2 of The National Co-operative Development Corporation Act, 1962, which of the following is explicitly included in the definition of "agricultural produce"?

Q2.Under Section 2 of The National Co-operative Development Corporation Act, 1962, what is the definition of "year"?

Q3.Under Section 2 of The National Co-operative Development Corporation Act, 1962, which of the following is explicitly listed as a "foodstuff"?

Q4.Under Section 2 of The National Co-operative Development Corporation Act, 1962, a "co-operative society" is defined partly by its engagement in any of the activities specified in Section 9(1). If a cooperative society in India only performs activities completely unrelated to those specified in Section 9(1), how is its status affected under Section 2?

Q5.Under Section 2 of The National Co-operative Development Corporation Act, 1962, the "Board" is defined as the Board of Management of the Corporation constituted under Section 10. According to Section 10(1) of the Act, who is designated to act as the Chairman of this Board?

Q6.Under Section 2 of The National Co-operative Development Corporation Act, 1962, how is "Corporation" defined?

Q7.Under Section 2 of The National Co-operative Development Corporation Act, 1962, what does "notified services" mean?

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