The government of Bihar has embarked on a mission with the objective of lending a helping hand to traders and farmers in the region. They aim to do this by facilitating the sale of Kashmiri apples via the Bihar State Cooperative Marketing Union Limited (Biscomaun) and National Agricultural Cooperative Marketing Federation Limited (NAFED), offering these products at prices substantially lower than those of the market.
Understanding Cooperatives
A cooperative, as defined by the International Labour Organization (ILO), is an independent group of individuals that come together voluntarily. This coming-together is driven by their shared economic, cultural, and social needs and desires. The participants jointly own and democratically control the operations of the cooperatives. In India, the role of administering Cooperative Societies is assigned to the States (Entry 32 of List II of the Seventh Schedule to the Constitution – the State List).
A Look into the History of Cooperative Movements in India
Cooperative movements in India have roots in agriculture and connected sectors. Initially, these cooperatives were established to cater to the credit requirements of people in rural and urban areas. However, post-Independence, cooperatives permeated all spheres of economic life. The 97th Constitutional Amendment Act of 2011 further amplified the importance of cooperative societies by awarding them constitutional status and protection. This pivotal amendment led to the following significant changes:
1. Forming cooperative societies became a fundamental right (Article 19).
2. A new Directive Principle of State Policy was incorporated for the promotion of cooperative societies (Article 43-B).
3. A novel Part IX-B, “The Cooperative Societies” (Articles 243-ZH to 243-ZT), got added to the Constitution.
The Influence of the Cooperative Sector
The cooperative sector has a crucial role to play in various aspects of India’s economy. As part of the Agriculture Export Policy 2018, it is envisaged that the cooperative sector will aid in doubling agricultural exports from the existing US$ 30 billion to US$ 60 billion by 2022.
| Fact | Description |
|---|---|
| Cooperative Membership | 94% of Indian farmers are members of at least one cooperative institution. |
| Contribution towards Financial Inclusion | The widespread credit-cooperatives have notably contributed towards financial inclusion. |
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)
Registered under the Multi-State Cooperative Societies Act, NAFED was established in 1958. The aim of its formation was to encourage cooperative marketing of agricultural produce, which would consequently benefit farmers. Agricultural farmers comprise the General Body of NAFED, actively participating in the decision-making process of the federation.
