Content:
- Cooperatives: Building a Better Tomorrow
Cooperatives: Building a Better Tomorrow
Context & Significance
- UN declares 2025 as International Year of Cooperatives.
- Theme for International Day of Cooperatives 2025 (5th July): “Cooperatives Build a Better World”.
- Celebrates cooperatives as people-centric enterprises solving global challenges and driving UN SDGs.
- Over 3 million cooperatives globally, employing 280 million people (~10% of global workforce).
Relevance : GS 2(Governance) , GS 3(Agriculture)
India’s Cooperative Landscape
- 8.42 lakh cooperative societies in India across sectors: agriculture, dairy, fisheries, credit, housing, women’s welfare.
- India has a rich pre-colonial history of informal cooperatives like Phads, Bhishies, Chit Funds.
- Iconic Indian cooperatives: Amul, IFFCO, KRIBHCO, NAFED, NCDC.
Key National Highlight
- Tribhuvan Sahkari University (TSU) foundation stone to be laid by Amit Shah in Anand, Gujarat.
- India’s first national-level cooperative university.
- Named after Tribhuvandas Patel, a pioneer of India’s cooperative movement.
Major Government Initiatives
PACs Reform & Digitalization
- 67,930 PACS approved for computerization; ₹918.69 cr allocated (States + NABARD).
- 54,150 PACS onboarded ERP, 43,658 live.
- Model Bye-Laws adopted by 32 States/UTs.
- 18,183 new multipurpose societies (Dairy/Fisheries/PACS) registered till Mar 2025.
White Revolution 2.0
- Launched Dec 2024; targets 50% rise in milk procurement over 5 years.
- 9,695 Dairy Cooperative Societies registered in 27 States/UTs.
Banking Empowerment
- 32.1 lakh RuPay KCCs issued under cooperative umbrella.
- 6,446 micro-ATMs distributed; 9,200 dairy PACS made Bank Mitras.
- UCBs now allowed branch expansion & doorstep banking.
- RBI approved NUCFDC for UCBs & SSE under NABARD for Rural Co-ops.
FPOs & Organics
- 1,867 FPOs & 70 FFPOs formed under cooperative model.
- NCOL: 5,185 PACS members; 21 organic products launched under “Bharat Organics”.
Fuel & Ethanol Push
- 188 PACS petrol pumps approved; 59 functional.
- ₹10,000 cr scheme for sugar mills; 63 ethanol plants to convert to multi-feed (from sugarcane to maize).
Financial & Tax Reforms
- MAT reduced to 15% (from 18.5%) for cooperative societies.
- IT surcharge cut (from 12% to 7%) for ₹1–10 Cr income range.
- TDS withdrawal limit raised to ₹3 Cr/year.
- Cash deposit/loan limit per member raised to ₹2 lakh.
- ₹46,524 cr tax relief to sugar mills; GST on molasses cut from 28% to 5%.
Global & National Milestones
- National Cooperative Database (NCD): 8.42 lakh societies mapped.
- National Cooperation Policy 2025 ready, aligns with Viksit Bharat 2047.
- ICA Global Cooperative Conference 2024 held in Delhi: 3,000+ cooperators participated.
NCDC Performance
- FY 2023–24: ₹60,618.47 cr disbursed (48% growth).
- FY 2024–25: ₹95,000 cr disbursed (~58% growth).
- Target: ₹1 lakh cr loan disbursal in next 3 years.
- ₹2,000 cr bond issuance approved for sector development.
Comparative Global Insights
- Japan: Strong agri-coops integrating production, marketing, and insurance.
- Kenya: SACCOs dominate credit access for low-income groups.
- France: Worker cooperatives are central to SME structure.
- India: World’s largest number of cooperatives, but faces governance and productivity issues.
- Comparative Metric: India has more co-ops but lower per-unit impact efficiency than some OECD nations.
Challenges in India’s Cooperative Sector
- Political interference in cooperative elections and management.
- Poor financial literacy and limited tech capacity at grassroots.
- Weak auditing and transparency in many PACS.
- Uneven growth across regions — Maharashtra & Gujarat lead, NE and Eastern states lag.
- Women underrepresented in co-op leadership positions.
Success Stories & Case Studies
- Amul: Global dairy success driven by village-level women cooperatives.
- SEWA: Women-run coops for health, banking, and garment production in Gujarat.
- Matsyafed (Kerala): Fishermen cooperatives transforming coastal livelihoods.
- Sikkim Organic Co-ops: Managing certified organic produce with premium export value.
Youth & Start-up Linkages
- Cooperatives can act as rural incubators for startups in agri-tech, fishery-tech, fintech.
- Scope for “Youth-led cooperatives” for climate tech, digital skilling, etc.
- TSU (Tribhuvan Sahkari University) can train next-gen cooperative leaders.
- Co-op + Startup = scalable, inclusive business models for Tier 2/3 India.
Climate & Sustainability Angle
- Community-led water conservation co-ops in drought-prone regions.
- Agroforestry cooperatives can earn carbon credits via reforestation.
- Dairy coops promoting methane-reducing feeding practices.
- Role in decentralized solar power and renewable energy cooperatives.
Digital & Tech Innovations
- Use of ERP software for PACS digitization.
- Blockchain for milk and grain supply chain traceability.
- AI-powered forecasting in farmer coops for price trends and pest control.
- Cooperative CRMs and e-commerce portals to sell directly to consumers.
Policy Asks / Needed Reforms
- National Cooperative Tribunal for quick dispute resolution.
- More autonomy in cooperative banking under RBI/NABARD framework.
- Credit rating system for coops to access institutional finance.
- Dedicated startup fund for cooperative innovation.
Linkages with UN SDGs
- SDG 1 (No Poverty): Micro-credit & self-help coops.
- SDG 5 (Gender Equality): Women’s dairy, weaving & finance coops.
- SDG 8 (Decent Work): Employment via agro-processing and retail.
- SDG 11 (Sustainable Cities): Housing cooperatives in urban areas.
- SDG 12 (Responsible Consumption): Organic farming and agro-coops.
Impact Measurement Framework
- Need for impact metrics: e.g., % increase in farmer income, % reduction in loan defaults.
- Use of NCD portal to develop data-driven policy dashboards.
- Annual cooperative “report cards” by NITI Aayog or Ministry of Cooperation.
Public Awareness & Civic Participation
- Awareness campaigns needed to promote cooperative values among youth.
- Mandatory social audits and community reporting for PACS.
- More visual identity and branding of cooperative products (like Amul model).
- Use of school curriculums to teach cooperative principles and governance.
Conclusion
- Cooperatives represent a grassroots development model, balancing economic growth with social equity.
- Their transformation via digitalization, policy support, and diversification is key to rural prosperity.
- India reaffirms commitment to “Sahkar se Samriddhi” as a cornerstone of inclusive and sustainable growth.
