International Year of Cooperatives 2025

The International Year of Cooperatives 2025 is initiative aimed at enhancing the cooperative sector in India. Under Prime Minister Narendra Modi’s leadership, the government is committed to making cooperatives a mainstay of economic development. The focus is on creating employment opportunities and promoting prosperity in agriculture and rural areas. This movement is expected to connect every individual with cooperative initiatives, encouraging social harmony and inclusivity.

International Year of Cooperatives 2025

• The International Year of Cooperatives is being celebrated in India to promote the cooperative movement.
• The government has outlined a 12-month programme to expand cooperatives across the country.
• The aim is to strengthen cooperative institutions and increase transparency within the sector.
• By the end of 2025, the cooperative movement is expected to achieve growth.

Role of Urban Cooperative Banks

Urban Cooperative Banks are set to play important role in the cooperative sector. The National Urban Cooperative Finance and Development Corporation (NUCFDC) has been established to support these banks. This umbrella organisation will enhance banking services, integrating digital banking and online transactions. The goal is to ensure that cooperative banks can offer services comparable to national and private banks.

Empowering Primary Agricultural Cooperative Societies (PACS)

The government is focusing on empowering Primary Agricultural Cooperative Societies (PACS). Model bylaws have been created to enhance their functionality. The aim is to establish a PACS in every village panchayat. The government has allocated Rs. 2,500 crore for computers and software to modernise these societies. Technology adoption is essential for their success.

Ranking System for Cooperatives

A new ranking system for cooperatives has been introduced. This system evaluates PACS, dairy, fisheries, urban cooperative banks, and more based on various parameters. The rankings will promote transparency and reliability within the sector. This initiative aims to enhance trust among financial institutions when funding cooperatives.

Focus on Youth and Employment

The cooperative sector is seen as a potential source of employment, particularly for the youth. The government is encouraging young professionals to engage with cooperatives, especially in technology. The aim is to create a self-reliant cooperative sector that contributes to economic growth.

Future Prospects

The cooperative sector is positioned as a key player in achieving India’s economic goals. The government envisions that cooperatives will contribute to making India the third-largest economic power by 2047. The commitment to the principles of cooperation will ensure that the benefits of economic growth are shared widely.

Significance of Ethanol Production

The introduction of ethanol production has been a game changer for sugar mills. This initiative has improved profitability for cooperative sugar mills, particularly in Maharashtra. The recent approval for sugar exports is expected to further benefit these mills.

Establishment of National Cooperative University

The government plans to establish the Tribhuvan National Cooperative University. This institution will focus on training skilled professionals for the cooperative sector. It aims to enhance the quality and efficiency of cooperatives across various industries.

Questions for UPSC:

1. Critically analyse the impact of cooperatives on rural employment and economic development in India.
2. Estimate the role of technology in modernising Primary Agricultural Cooperative Societies (PACS) and enhancing their efficiency.
3. Point out the significance of the National Urban Cooperative Finance and Development Corporation (NUCFDC) in the cooperative banking sector.
4. What are the key parameters of the new ranking system for cooperatives? How do they contribute to transparency and accountability?

Answer Hints:

1. Critically analyse the impact of cooperatives on rural employment and economic development in India.

1. Cooperatives create job opportunities in agriculture and rural sectors, reducing unemployment.
2. They promote self-reliance and empower local communities through collective farming and resource sharing.
3. Cooperatives enhance income stability for farmers by providing better prices and access to markets.
4. They encourage social harmony and inclusivity by involving diverse groups in economic activities.
5. Government support and initiatives, such as the establishment of PACS, further strengthen rural economic development.

2. Estimate the role of technology in modernising Primary Agricultural Cooperative Societies (PACS) and enhancing their efficiency.

1. Technology facilitates better management of resources through improved accounting and operational systems.
2. Digital tools enable efficient communication and transactions among members, enhancing participation.
3. Modern software and computers, funded by the government, improve data management and decision-making.
4. Technology adoption can lead to higher productivity and better service delivery in PACS.
5. Training programs for youth in technology ensure sustainability and innovation within PACS.

3. Point out the significance of the National Urban Cooperative Finance and Development Corporation (NUCFDC) in the cooperative banking sector.

1. NUCFDC acts as an umbrella organization, enhancing the capabilities of urban cooperative banks.
2. It integrates modern banking services like digital and mobile banking, making banking accessible.
3. By providing support, it helps cooperative banks compete with national and private banks.
4. NUCFDC promotes transparency and trust, encouraging financial institutions to invest in cooperatives.
5. It aims to unify and standardize banking processes across cooperative banks, improving efficiency.

4. What are the key parameters of the new ranking system for cooperatives? How do they contribute to transparency and accountability?

1. The ranking system evaluates cooperatives based on audits, financial performance, and service quality.
2. It includes infrastructure and branding as parameters, ensuring a holistic assessment.
3. Rankings promote accountability by encouraging cooperatives to maintain high standards and practices.
4. Transparency is enhanced as stakeholders can access performance metrics, encouraging trust.
5. The system helps financial institutions make informed decisions when funding cooperatives.