At the recent conclusion of the National Conference on Cooperation Policy in New Delhi, several key points about the state of cooperatives in India were discussed. This conference was divided into six significant themes, each addressing different aspects of cooperatives and their functions.
The first theme was centered around the current legal framework, the identification Regulatory policy, and measures required to eliminate operational barriers. The goal was to simplify business operations and provide a level playing field for cooperatives and other economic entities.
Reforms for Strengthening Governance
The second theme discussed reforms necessary for strengthening governance. Cooperative principles, democratic member control, member participation, transparency, regular elections, and human resource policies were some of the topics that were brought up. International and national best practices, as well as account keeping & auditing, were also covered.
Multi-Cooperative Vibrant Economic Entities
The third theme focused on strengthening infrastructure and access to capital for cooperatives. This included promoting entrepreneurship, branding, marketing, business plan development, innovation, technology adoption, and exports.
Training, Education, Knowledge Sharing, and Awareness Building
The fourth theme was centered around training, education, knowledge sharing, and awareness-building. It discussed the importance of mainstreaming cooperatives, linking training with entrepreneurship, and including Women, Youth & Weaker Sections.
Revitalizing Defunct Cooperatives
The fifth theme targeted the promotion and revitalization of defunct cooperatives. Issues such as increasing membership, formalizing collectives, developing cooperatives for sustainable growth, mitigating regional imbalances & exploring new sectors were examined.
The Role of Cooperatives in Social Security
The final theme promoted social cooperative and the role of cooperatives in social security. The ministry is planning a series of conferences with different stakeholders to solicit their views. These efforts will culminate in the formulation of a new robust National Cooperation Policy.
Understanding the Ministry of Cooperation
In July 2021, the Government of India established the Ministry of Cooperation with the primary aim of promoting growth within the Cooperative Sector and realising the vision from Cooperation to Prosperity. It provides a separate administrative, legal, and policy framework for strengthening the cooperative movement.
Cooperatives in India
By definition, a Cooperative is an autonomous association of persons voluntarily united to meet their common economic, social, and cultural needs through a jointly-owned and democratically-controlled enterprise. Some examples of successful Cooperatives in India include the National Agricultural Cooperative Marketing Federation of India (NAFED), Indian Farmers Fertilisers Cooperative Limited (IFFCO), and AMUL.
The Constitution (97th Amendment) Act, 2011, added a new Part IXB about cooperatives working in India. This change gave citizens the fundamental right to form cooperatives, placing them on an equal footing with unions and associations under Part III of the Constitution. A new Article 43B added to the Directive Principles of State Policy emphasized the importance of promoting cooperative societies.
Looking Towards the Future
New technology heralds emerging areas where cooperative societies can play a significant role and make people more familiar with these advancements. The cooperative movement, based on unity, has the potential to solve people’s problems. However, irregularities in cooperatives must be addressed with rules and stricter enforcement. Market linkages for agricultural farmers and cooperative societies must be strengthened to bolster the cooperatives even further.