The 100th International Day of Cooperatives was recently commemorated worldwide. Observed under the theme “Building a Self-Reliant India and a Better World through Co-operatives”, this day holds particular significance to India. Let’s delve into the relevance of this day and the co-operatives it celebrates, along with the challenges faced by these entities.
Understanding the International Day of Cooperatives
The United Nations General Assembly instituted the International Day of Cooperatives on 16th December 1992. Falling on the first Saturday of July, the occasion focuses on propagating co-operatives worldwide and establishing an atmosphere conducive for their growth and profitability. The day draws attention to the co-operative movement’s efforts in addressing critical issues recognized by the United Nations. Its goal is to enhance partnerships between international co-operative movements and various stakeholders.
This year, the theme is “Cooperatives Build a Better World”, reflecting the event’s intent of spreading awareness about co-operatives and promoting values such as international solidarity, economic efficiency, equality, and global peace.
Defining Co-operatives
At their core, co-operatives are people-centric enterprises. They are owned, controlled, and managed by their members to fulfill shared economic, social, and cultural aspirations. Co-operatives unite people in a democratic and equal manner, adhering to the ‘one member, one vote’ rule. Consequently, each member has equal voting rights, irrespective of their capital contribution to the enterprise.
Co-operatives in India
India boasts the world’s largest co-operative movement, with over 8.5 lakh villages involved in the initiative. Co-operatives are critical for fostering socio-economic development in both rural and urban areas, contributing to inclusive growth. Noteworthy successes in India’s co-operative movement include entities like AMUL (Anand Milk Union Limited), IFFCO (Indian Farmers Fertilizer Cooperative Limited), KRIBHCO (Krishak Bharati Cooperative Limited), and NAFED (National Agricultural Cooperative Marketing Federation of India Ltd).
Government Initiatives for Co-operatives
In July 2021, the Indian Union Government established the Ministry of Cooperation to bolster the co-operative sector. The ministry is developing new co-operation policies and programmes, recognizing the considerable potential for empowering farmers, agriculture, and rural regions through co-operatives. A recent initiative to digitize Primary Agricultural Credit Societies (PACS) has been undertaken to enhance their efficiency, transparency, and accountability, allowing them to expand their operations.
Challenges Facing Co-operatives
Despite their apparent benefits, co-operatives often encounter several obstacles. These include neglect from policymakers due to low visibility, lack of awareness about effective business strategies, inadequate funding from public and private sectors, and poor management due to insufficient skills and market understanding.
The Way Forward for Co-operatives
The dual role of co-operatives as associations and enterprises should be leveraged by gaining support from various stakeholders, including the government and corporates. Furthermore, the government can enhance the capabilities of co-operatives by providing guidance and establishing connections with the market and business communities. This would equip them with the required skill set and knowledge to successfully run an enterprise.
Last Modified: February 15, 2024