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.
The Chief Executive Authority of the Society is the Managing
Director guided by the policy making body namely the Board of Directors elected by the
members from amongst themselves. The Managing Director is assisted by 3 Functional
Managers namely Manager(Administration), Manager (Trade) & Manager (Accounts)
with about 116 committed staff of the Society.
After the emergence of Sagoserve, on the horizon of tapioca
industry, the bargaining power of manufacturers has substantially increased in the field
of marketing and the menace of middlemen in this trade has been completely overcome. Due
to successive efforts of the society, sago/starch units have now become the backbone of
Salem District's Rural Economy.