Government of Tamil Nadu
Organisation Structure

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.8.42 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

2005-06

230.29

4.83

0.84

2006-07

223.79

                4.62

1.28

2007-08

236.22

4.70

1.95

2008-09

248.52

4.94

2.08

2009-10

307.45

3.05

2.06

2010-11

371.41

3.62

2.37

2011-12

340.05

3.41

1.00

2012-13

354.48

3.53

0.99

2013-14

492.82

4.93

2.24

(a) Modernisation of Sago Serve Member units
To modernise the sago/starch producing member-units of Sagoserve, a new scheme is being implemented. Under the scheme, a subsidy at the rate of 50% subject to a maximum of Rs.4.00 lakh to each member unit will be released by Sagoserve. Of this, the State Government will reimburse to Sagoserve, 50% cost of the subsidy, subject to a maximum of Rs.2.00 lakh per unit.  The entire State Government subsidy of Rs.50.00 lakh sanctioned during the year 2006-07 was utilized in full by disbursing the subsidy to 54 beneficiaries Starch and Sago Members units. Similarly, for 2007-08 a sum of Rs.15.14 lakhs and for the year 2011-12 a sum of Rs.49.71 lakhs has been sanctioned by the Government as subsidy and disbursed to the unit holders.

(b)       MSE - Cluster Development Programme for the development of           Sago & Starch Industry Cluster in Salem and Namakkal.

Total Project cost                                                      Rs. 498.00 lakh
Details for the Project Cost:
For Soft Interventions                                                      Rs. 13.00 lakh
For setting up laboratory, packing unit, Training
Centre, Marketing information centre and
Conveyor system for unloading operations                Rs.485.00 lakh
                                                                                           ----------------------
                        Total                                                          Rs.498.00 lakh
                                                                                        -----------------------

1. For setting up Sago and Starch Testing Lab.          Rs.120.00 lakh
2. For Soft Interventions                                                   Rs.  10.00 lakh
                                                                                                --------------------
                                                Total                                       Rs.130.00 lakh
                                                                                                --------------------
A building within the SAGOSERVE office complex for setting up the lab has been identified. Equipments and apparatus have been purchased for     Rs. 50.00 lakh and installed in the laboratory. The Laboratory has commenced its functioning on 1.2.2010. The Government of India have released its grant portion of Rs.39.69 lakh under CFC and Rs. 4.00 lakh under Soft intervention Schemes.

 For more details please visit www.sagoserve.com