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.