The recent news that the Central Government has established a distinct ‘Ministry of Co-operation’ to achieve the aim of ‘Sahkar se Samriddhi’ (Prosperity through Cooperation) signifies a new drive toward the cooperative movement. This initiative underlines the government’s profound commitment to partnerships centered on community development. Moreover, it delivers on the budget declaration made by the Finance Minister in 2021.
Significance of Ministry of Co-operation
The new Ministry of Co-operation provides an exclusive administrative, legal, and policy framework for boosting the cooperative movement in India. It aims to expand cooperatives as a grassroots, people-based movement. The ministry will also work toward simplifying procedures for business ease for cooperatives, enabling the growth of Multi-State Co-operatives (MSCS).
About ‘Co-operatives’
According to the International Labour Organisation (ILO), a cooperative is a voluntarily united autonomous association of individuals that aims to meet their common economic, social, and cultural needs via a jointly-owned and democratically-controlled enterprise. Variants of cooperatives include Consumer Cooperative Society, Producer Cooperative Society, Credit Cooperative Society, Housing Cooperative Society, and Marketing Cooperative Society. The United Nations General Assembly declared 2012 as the International Year of Cooperatives, highlighting their role globally.
Cooperatives in India
India, an agriculture-focused country, has initiated the world’s largest cooperative movement. In India, cooperatives enable each member to work responsibly within an economic development model based on cooperation.
Constitutional Provisions Related to Cooperatives
The Constitution (97th Amendment) Act, 2011 introduced Part IXB presenting provisions about cooperatives functioning in India. The term “cooperatives” was added after “unions and associations” in Article 19(1)(c) under Part III of the Constitution, granting citizens the fundamental right to form cooperatives. Additionally, Article 43B was added in the Directive Principles of State Policy (Part IV) concerning the “promotion of cooperative societies.”
Co-operative Movement in India
The co-operative movement has a rich history both before and after India’s independence. In both eras, the government enacted a series of acts to formalize, structure, and shape the cooperative movement.
Importance of Cooperatives
Cooperatives play a crucial role in providing agricultural credits and funds where state and private sectors could not make significant contributions. Moreover, cooperatives meet consumption requirements at reduced rates, offer a platform for the poor to collectively solve their problems, softens class conflicts, reduces social cleavages, mitigates bureaucratic evils, boosts agricultural development, and fosters small and cottage industries.
Challenges
Despite their significance, cooperatives face issues like mismanagement due to large memberships, manipulation in elections to the governing bodies, lack of public awareness about their purpose, limited coverage, and functional weaknesses due to inadequately trained personnel.
Way Forward
With technology advancing, new areas are emerging where cooperative societies can play a key role by acquainting people with these areas and technologies. The cooperative movement unites everyone, even those who remain anonymous. Strengthening the cooperatives requires prompt rules and strict implementation to check irregularities and ensuring market linkages for agricultural farmers and cooperative societies.