Cooperatives have played a vital role in rural India since independence. Agricultural cooperatives were promoted under the five-year plans to encourage collective farming, provide agricultural credit, and create storage and marketing facilities. Milk cooperatives like Amul became successful enterprises. However, the cooperative movement lost steam due to political interference and lack of professionalism.
Why Cooperatives Matter for Rural India
About 40% of India’s population is engaged in agriculture. Cooperatives enable small farmers to reap economies of scale and bargaining power against large buyers. They provide solutions for credit, irrigation, storage, marketing of produce, dairy, consumer goods supply and more. Well-run cooperatives can uplift rural economies and self-reliance.
Cooperation Ministry to Revive Cooperatives
The Modi government established a dedicated Ministry of Cooperation in 2021 to revive cooperatives nationally. The budget was increased seven-fold to energize the movement. Reforms include connecting cooperatives to NABARD for funding, computerization, tax reductions, model bylaws and more. The aim is to make cooperatives vibrant enterprises serving local needs.
Key Initiatives of Cooperation Ministry
Some key initiatives of the cooperation ministry include:
- Promoting multi-purpose cooperatives at village level for various activities.
- National Cooperative Database to bring transparency and improve governance.
- Program to computerize PACS to improve rural credit access.
- Bharat brand of organic produce through farmer cooperatives.
- National Cooperatives Policy for an ecosystem approach.
- Consortium for capacity building of cooperatives.
Benefits of Revitalized Cooperatives
Well-managed, autonomous cooperatives can immensely benefit rural communities:
- Improve farmer incomes through direct market access.
- Generate rural employment and micro-enterprises.
- Enable access to financial services and markets.
- Supply agricultural inputs like seeds, fertilizers etc. at fair prices.
- Promote sustainable farming practices.
- Empower women through credit and livelihood options.
- Provide healthcare, education and other services.
- Strengthen food security through local warehouses.
- Advance financial inclusion and digital literacy.
Cooperatives Beyond Farming
New generation cooperatives are expanding beyond agriculture into other sectors like worker-owned businesses, financial services, renewable energy, crafts, housing and more. They are an effective model for decentralized, self-reliant development.
