- Recently, a separate ‘Ministry of Co-operation’ has been created by the Central Government for realizing the vision of ‘Sahkar se Samriddhi’ (Prosperity through Cooperation) and to give a new push to the cooperative movement.
- The Government has signaled its deep commitment to community based developmental partnership. It also fulfils the budget announcement made by the Finance Minister in 2021.
Important points:
- It will provide a separate administrative, legal and policy framework for strengthening the cooperative movement in the country.
- It will help deepen Co-operatives as a true people based movement reaching upto the grassroots.
- It will work to streamline processes for ‘Ease of doing business’ for co-operatives and enable development of Multi-State Co-operatives (MSCS).
‘Co-operatives’:
- According to the International Labour Organisation (ILO), a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
- There are many types of cooperatives such as Consumer Cooperative Society, Producer Cooperative Society, Credit Cooperative Society, Housing Cooperative Society and Marketing Cooperative Society.
- The United Nations General Assembly had declared the year 2012 as the International Year of Cooperatives.
- India is an agricultural country and laid the foundation of World’s biggest cooperative movement in the world.
- In India, a Co-operative based economic development model is very relevant where each member works with a spirit of responsibility.
Importance of Cooperatives:
- It provides agricultural credits and funds where state and private sectors have not been able to do very much.
- It provides strategic inputs for the agricultural-sector; consumer societies meet their consumption requirements at concessional rates.
- It is an organization for the poor who wish to solve their problems collectively.
- It softens the class conflicts and reduces the social cleavages.
- It reduces the bureaucratic evils and follies of political factions;
- It overcomes the constraints of agricultural development;
- It creates a conducive environment for small and cottage industries.
Challenges:
- A hugely large membership turns out to be mismanaged unless some secure methods are employed to manage such co-operatives.
- In the elections to the governing bodies, money became such a powerful tool that the top posts of chairman and vice-chairman usually went to the richest farmers who manipulated the organization for their benefits.
- People are not well informed about the objectives of the Movement, rules and regulations of co-operative institutions.
- Most of these societies are confined to a few members and their operations extended to only one or two villages.
- The Co-operative Movement has suffered from inadequacy of trained personnel.
Way Forward
- New areas are emerging with the advancement of technology and cooperative societies can play a huge role in making people familiar with those areas and technologies.
- Principle of the cooperative movement is to unite everyone, even while remaining anonymous. The cooperative movement has the capacity to solve people’s problems.
- However, there are irregularities in cooperatives and to check them there have to be rules and stricter implementation.
- To strengthen the cooperatives there should be market linkages for agricultural farmers as well as cooperative societies.
SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT