Sago Serve:

Prior to the formation of the Sagoserve, the manufacturers of starch and sago in this district faced a

lot of problems pertaining to credit and marketing of tapioca products. Merchants used to offer low

prices for their goods and middlemen exploited this situation in the absence of organized marketing

and warehousing facilities. To get over these problems the sago/starch manufacturers formed "Salem

Starch and Sago Manufacturers' Service Industrial Co-operative Society Ltd." Salem in 1981 under

the Tamil Nadu Co-operative Society Act 1961. It was Registered on 21.07.1981 and commenced its

business on 27.02.1982. This society, popularly known as "Sagoserve" throughout the world, is

functioning under the administrative control of the Director of Industries and Commerce, Govt. of

Tamilnadu.

 Member
 Merchant
 Tender

 Warehouse

Salem: Leading The World

The District offers good raw material, cheap labour and good sunshine for a longer period of the day

throughout the year; helping manufacturers to produce more tapioca finished products eg. sago and

starch and therefore the District of Salem is known as the land of Sago, even in the international

forums. In and around Salem the yield of tapioca is about 25-30 t/ha, highest in the World. National

average is 19 t/ha and World average production stands at 10 t/ha.

 OBJECTIVES
 Strengthen the Co-operative movement in the Sago & Starch sector.

 Remove the middlemen from the scene of Sago & starch trade and to ensure better prices for the
tapioca finished products.

 Advance credit to members.

 Improve productivity of the tapioca finished products and to disseminate market intelligence to
its members.

 Generate employment in rural areas for skilled and unskilled labour.

Facilities

warehouse

 Tapioca Starch and Sago Manufacturers are enrolled as member of SAGOSERVE.

 The members send their finished products of tapioca starch and sago to SAGOSERVE for sale.
 On receipt of the goods from the members along with tags, every consignment is assigned a ‘Lot
No.’ and stacked in the godowns.

 After Lab clearance (Sago only) Samples of the each consignment are taken and placed for ‘Tender
sale’.

 The goods which are confirmed to a dealer is given delivery and raised invoice.

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.9,27 crores, which includes Government share
participation of Rs.99.83 lakhs.

The Government has levied Goods and service Tax 5% on sago and 12% on starch with effect from
1.7.2017.The performance of the society for the past years is as follows:
(Rs. in crores)

Year Sales Remittance of Sales tax/ GST Profit During the

Value towards Government 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 2.29
2017-18 233.23 1.13 1.69
(upto 30.11.2017)