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.
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.