Focus: GS III: Indian Economy
Why in News?
The Union Cabinet, chaired by the Hon’ble Prime Minister Shri Narendra Modi, has approved the setting up and promotion of a National Level multistate cooperative export society under the Multi State Cooperative Societies (MSCS) Act, 2002.
About National Level Multistate Cooperative Export Society
- The proposed society aims to provide thrust to exports from the cooperative sector by acting as an umbrella organization for carrying out and promoting exports.
- This will help unlock the export potential of Indian cooperatives in global markets.
- The proposed society will also help cooperatives in getting benefits of various export-related schemes and policies of different Ministries of Government of India in a focused manner through the ‘Whole of Government Approach’.
- Members would benefit both by realizing better prices through export of their goods and services and also by dividends distributed out of the surplus generated by the society.
- Increased exports through the proposed society will increase production of goods and services by the cooperatives at various levels thus leading to more employment in the cooperative sector.
- This will also help in achieving the goal of “Sahakar-se-Samriddhi” though the inclusive growth model of cooperatives where the members would benefit both by realization of better prices through export of their goods and services and also by dividend distributed out of the surplus generated by the society.
- Processing of goods and enhancing the services to match international standards will also generate additional employment.
- Increased export of cooperative products would, in turn, also promote “Make in India” thus leading to Atmanirbhar Bharat.
What are multi-State cooperatives?
- According to the International Cooperative Alliance (ICA), cooperatives are people-centred enterprises jointly owned and democratically controlled by and for their members to realise common economic, social and cultural needs and aspirations.
- Multi-State cooperatives are societies that have operations in more than one State — for instance, a farmer-producers organisation which procures grains from farmers from multiple States.
- The board of directors are from all the States these collectives operate in and control all the finances and administration.
- There are close to 1,500 MSCSs registered in India with the highest number being in Maharashtra.