Cooperatives in India

What is a Cooperative?

To meet their common economic, social, and cultural needs

Democratically owned by members, with each member having one vote

An autonomous association of persons united voluntarily

Key sectors

Marketing Cooperative Society

Co-operative Credit Societies

Housing Cooperative Society

Producer Cooperative Society

Co-operative Farming Societies

Consumer Cooperative Society

What laws govern cooperative societies?

Multistate Cooperative Societies Act, 2002

State governments can govern

Central Registrar of Societies is their controlling authority

Provisions of Indian Constitution

Art. 19(1)(c) the word “cooperatives” was added

Forming cooperatives is a FR

Part IXB regarding the cooperatives working

New Article 43B was added in DPSP

Constitution (97th Amendment) Act, 2011

Their importance

It reduces the bureaucratic evils

It promotes agricultural development

It softens the class conflicts

It provides conducive environment for small and cottage industries

Organization for the poor for collective resolution of problems

It ensures equitable distribution of wealth

It provides agricultural credits and funds

Why needed new ministry?

Financial and legal power needed to penetrate into other states

Get capital from the Centre

To restore the importance of the cooperative structure in the country

Community-based developmental partnerships

Co-operative based economic development mode

Influence in State and National politics

They elect their leaders democratically

Local economy ex. Amul

Schools for development of leadership ex. Sharad Pawar

Challenges

Lack of Awareness

Restricted Coverage

Mismanagement and Manipulation

Dearth of trained staff

State list subject

The Multi-State Cooperative Societies (Amendment) Bill, 2022, aimed at bringing in transparency in the sector, was introduced in the Lok Sabha.