Government of Tamil Nadu
Sagoserve


                       To eliminate the Small Scale Industrial Unit holders producing sago and starch from the tapioca tubers grown largely in the 8 districts including Salem, Namakkal, Dharmapuri, Erode, Tiruvannamalai, Villupuram, Perambalur and Trichy  from the clutches of middlemen and to get them fair and remunerative price for their produce, a central marketing servicing society known as “SAGOSERVE” was registered on 21.7.1981 and  started  functioning from 20.7.1982 onwards with 577 small scale sago Industrial unit holders as its members.
                         
           After formation of ‘SAGOSERVE’ the starch and sago produced by the Small scale industrial unit holders are sold in the open market by conducting daily tender cum auction sale, by which the SSI unit holders are able to get fair and remunerative price for their produce. Besides, SAGOSERVE is extending credit facilities at a nominal rate of interest and warehousing facilities for the SSI unit holders manufacturing sago and starch. About 70000 workers in the SSI Industrial units and 5 lakh Agricultural Labourers engaged in planting the tapioca tubers are provided with employment.
            The total share capital of the Sagoserve is Rs.9.02 crores, which includes Government share participation of Rs.99.83 lakhs.
                       
The Government has levied sales tax of 2% with effect from 7.5.2003 on the sago and starch sold through Sagoserve, against the sales tax of 4% levied for the sago and starch sold by the private traders.The performance of the society for the past years is as follows:

(Rs. in crores)


Year

Sales
Value

Remittance of sales Tax towards Government

Profit During the year

2012-13

354.48

3.53

0.99

2013-14

492.82

4.93

1.91

2014-15

472.76

4.71

2.10

2015-16

315.51

3.15

2.03

2016-17

414.18

4.14

2.50