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Reviving cooperatives must address foundational issues, regulatory overlap | Current Affairs | Vision IAS

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Reviving cooperatives must address foundational issues, regulatory overlap

2 min read

India's Cooperative Movement

The cooperative movement in India, initially focused on agriculture, now spans various sectors. These member-owned enterprises are pivotal in grassroots development and community empowerment.

Overview and Expansion

  • India has 844,000 registered cooperatives across 30 sectors.
  • The National Cooperative Policy 2025 aims to expand cooperatives by 30%, achieving one cooperative in every village.
  • The goal is to activate 500 million citizens currently inactive in cooperatives.

Policy Features and Objectives

  • The policy encourages states to reformulate cooperative policies and digitize processes.
  • Timely elections are emphasized to counter inefficiencies and political interference.
  • Primary Agricultural Credit Societies (PACs) are to be strengthened as implementing agencies for government schemes.

Marketing and Export Potential

  • The policy seeks to unlock cooperatives' potential in exporting high-quality products like dairy, spices, and handicrafts.
  • Focus on improving branding, logistics, and international standards awareness.
  • National Cooperative Exports Ltd. was established in 2023 to provide technical assistance and economies of scale.

Recent Developments

  • Computerization of PACS and creation of model bylaws for multipurpose use.
  • Launch of the world's largest decentralized grain-storage program.
  • Establishment of Tribhuvan Sahkari University for skill development and innovation.

Challenges and Concerns

Long-term success hinges on addressing foundational challenges:

  • 40% of PACs are defunct with limited digital tool adoption.
  • Weak institutional capacity and financing constraints hinder growth.
  • Technological and human capital deficiencies prevent scaling and innovation.
  • Regulatory uncertainty, especially for cooperative banks under dual regulation.
  • Potential regulatory overlaps as cooperatives expand into insurance and other sectors.
  • Tags :
  • National Cooperative Policy 2025
  • Primary Agricultural Credit Societies (PACs)
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