The Union Government has formed the Ministry of Co-operatives on the lines of the Ministry of Corporate Affairs. It will provide a separate administrative, legal, and policy framework to strengthen the cooperative movement. This decision of the government will prove to be important in empowering the lower level cooperative members farmers, weavers, fishermen, and consumers.
National Cooperative Development Corporation (NCDC), central registrar, cooperative education and training, and promotion of cooperatives will be under the purview of the newly formed Ministry of Cooperation. At present no Joint Secretary level officer is appointed to oversee the activities of the cooperative sector running under the Ministry of Agriculture, while there are 40 crore members of eight lakh cooperative societies in the country.
Due to different laws and rules in the states, the cooperative movement can achieve its set goal. This is the reason that corruption is at its peak in cooperative sector institutions in many states. There have been constant questions about him. To remove such malpractices, a constitutional amendment passed by the Parliament was passed. According to this, all the states will have to keep their functioning accordingly.
National Co-operative Union of India (NCUI) President Dilip Sanghani says that this cooperative will reach new heights. The cooperative-based economic model is very relevant in the country, where each member works with his sense of responsibility. More than 14,000 cooperative banks have branches operating in rural areas, catering to the needs of local customers. The Reserve Bank of India (RBI) has already implemented regulations to remove the irregularities of cooperative banks.
Dr. Chandrapal Singh Yadav, chairman of Kribhco, a cooperative sector fertilizer company, said that this initiative of the government will benefit the cooperative population. The standard of living of the people will improve. Crores of women belonging to lakhs of Women Self Help Groups (SHGs) of the country will get the benefit of the cooperative movement. Along with the supply of seeds, fertilizers, and pesticides to the farmers associated with the agriculture sector, they get agricultural loans at concessional rates from cooperative banks. Government procurement of their produce on support price, distribution of food grains and other essential commodities to the consumers will prove to be more effective in cooperatives.
Yadav said that there was a great need for a legal framework in the cooperative sector, which would now be fulfilled. Weavers, fishermen, dairy sector, housing, labor, health and insurance sectors, cooperatives will be able to work ahead. The benefit of this will also be available to the cooperative working at the last rung of the cooperative system. There is a dire need for education and training of youth in the cooperative sector, which will now be fulfilled, which will provide employment opportunities to the youth.
A separate ministry will increase transparency in cooperative banks and other related institutions. Still, computerization of cooperatives has not been done in many states, due to which there is a full possibility of disturbances. The new ministry will work to bring ease of doing business for cooperatives. Along with this, it will pave the way for streamlining the processes and development of cooperative societies operating in more than one state.