Co-operatives

• Meaning: A co-operative is an autonomous group of people who have come together voluntarily to achieve their common economic, social, and cultural needs and objectives through a democratically governed and collectively owned business.
• The Ministry of Cooperation reports 8.5 lakh Indian cooperatives with 1.3 crore members.
• Principles of cooperatives: Cooperatives are founded on self-reliance, accountability, democracy, equality, equity, and solidarity.
• According to Gandhiji, Co-operation was required for the formation of a socialist society and total decentralisation of power. As he believed, Co-operation was one of the most crucial ways to empower people.

Co-operative Movement in Post-Independence Era  

Importance of Cooperatives

• Provides agricultural credits and funds to farmers, traders etc. Ex. Sahkari banks of different states.
• Women Empowerment, Ex. Shree Mahila Gruha Udyog (Lijjat Papad).
• Creating decent jobs Ex. Amul, Nandani, Provided more than half million jobs in Kenya
• Provides strategic inputs for the agricultural sector, Ex. IFFCO, KRIBHCO
• Wish to solve the problems of needy collectively Ex. Cooperative housing society
• Reduces class conflicts and social cleavages
• Check bureaucratic evils and follies of political factions
• Fosters the growth of small and cottage industries EX. TRIFED, Indian Coffee House
• Consumer societies meet their consumption requirements at concessional rates. Ex. National Cooperative Development Corporation
• International cooperation, Ex. Ugandan Cooperative College, which provides training in cooperative management and governance.

Challenges

• Mismanagement: If some secure methods are not used to manage such cooperatives, a massively large membership turns out to be mismanaged.
•  For Example- Recently failed Urban cooperative banks like Punjab and Maharashtra cooperative bank.
• Manipulation: During voting for the governing bodies, money is used and mostly the richest farmers won the top positions of chairman and vice-chairman etc.
• Lack of Knowledge: People are not well informed about the goals of the policies governing cooperative institutions. 
• Limited Coverage: The majority of these societies have only a small number of members, and they only operate in one or two villages.
• Functional Weakness: The lack of adequately trained personnel has been detrimental to the Co-operative Movement.
• Interference by the government: The administration has adopted a patronising tone toward the cooperative movement.
• Flaws in operation 
• They have been unable to progress along healthy lines due to this deficiency. 
• Cooperative have failed to develop effective communication and public relations strategies that promote the concept of collaboration among the general population.

Way Forward

• Training: 

• Cooperatives should take up the task of training farmers in the right use of inputs such as fertilisers, Pesticides, Water etc. and help them understand new technologies in farming.
• Take an active part in skilling rural youth.
• It must also extend support to children in academic and professional institutions, and to those who want to form cooperatives, but who are not aware of the various modalities, and requirements.

• More inclusive: Increased participation of women in the cooperative movement. 
• Checks & Balances to be updated regularly: There are irregularities in cooperatives and to check them there must be rules and stricter implementation.
• Use of technology:  

• To have a transparent, accountable, and efficient system, cooperatives should make effective use of digital technology, especially in governance, banking, and business. 
• Cooperative societies can contribute to making people familiar with new-age technologies. 

Conclusion

• The cooperative movement's guiding principle is to unite people while maintaining anonymity. 
• The movement has the power to provide solutions to people's issues. Cooperatives do have irregularities, though, and to prevent them, rules and stricter enforcement are needed. 
• Furthermore, market connections for agricultural farmers and cooperative societies are necessary to strengthen cooperatives.

The Multi-State Co-operative Societies (Amendment) Bill, 2022

• The Bill seeks to amend the Act to align its provisions as per Part IXB of the Constitution and address concerns with the functioning and governance of co-operative societies.

• Provision of the Bill – 

Issues and Challenges

• Reviving sick co-operative societies may burden profitable societies as the bill is effectively imposing a cost on well-functioning co-operatives to bail out poorly functioning ones.
• Restricting redemption of government shareholding may be against co-operative principles.
• The Report of the High-Powered Committee on Co-operatives (2009) had recommended against government participation in the share capital of co-operatives since it leads to government control, which could be detrimental to the autonomy of co-operatives.

Conclusion

Over 1500 multi-State co-operative societies in India help their members economically and socially. The amendment proposes the Cooperative Election Authority, Cooperative Information Officer, and Cooperative Ombudsman to make multi-State Cooperative societies more democratic, open, and responsible.