PIB Summaries 05 July 2025

Content:

1. 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.