EMPHASIS ON FORMATION OF AGRICULTURAL COOPERATIVE SOCIETIES IN INDIA
EMPHASIS ON FORMATION OF AGRICULTURAL COOPERATIVE SOCIETIES IN INDIA I RACE IAS : Top IAS Coaching institute in lucknow I current affairs
EMPHASIS ON FORMATION OF AGRICULTURAL COOPERATIVE SOCIETIES IN INDIA
Why in News:
- Recently, the Union Cabinet has approved a proposal to set up two lakh Primary Agricultural Credit Societies (PACS), dairy and fish cooperatives in five years for improving the cooperative movement in the country,
Key points:
- At present, about 63 thousand PACS societies are active in the country.
Objectives of their formation:
- Creation of necessary infrastructure for providing procurement and marketing facilities to the farmers;
- To make cooperatives financially viable;
- Creating new employment opportunities in rural areas;
- To bring transparency in the working of cooperatives by computerizing.
What is Co-operative:
- A co-operative is an autonomous association of persons voluntarily united to meet their economic, social and cultural needs and aspirations through jointly owned and democratically controlled enterprise.
Constitutional provisions relating to cooperatives:
- By the 97th Constitutional Amendment 2011, Part IXB was added in respect of co-operative societies functioning in India.
- The word co-operative was added to Article 19(1)(c) in the Fundamental Rights (Part III) of the Constitution.
- It is a fundamental right to form cooperative societies in India.
- Article 43B has been added in Part IV of the Constitution in relation to the promotion and dissemination of cooperatives under the Directive Principles of State Policy.
Stages of Development of Co-operative Movement:
- Early Phase of the Co-operative Movement (1904-11)
First Cooperative Act:
- A committee under the chairmanship of Sir Edward Law was formed by the Indian Famine Commission (year 1901) to start co-operative societies in India.
- The first Co-operative Credit Societies Act was passed by this committee in the year 1904.
- Reformation Phase of the Co-operative Movement (1912-1918)
Cooperative Societies Act of 1912:
- In this phase, the defects of the 1904 Act were removed by the Co-operative Societies Act, 1912.
- Maclagan Committee: A committee was constituted under the chairmanship of Sir Edward Maclagan in the year 1915 to assess the social and economic impact of the co-operative movement.
- Expansion Phase of the Cooperative Movement (1919-29)
- In the year 1919, by the Montague-Chelmsford Reforms, cooperatives were declared a state subject.
Gandhian Thoughts Related to Co-operative Societies:
- Co-operative societies are helpful in building a socialist society and in developing the spirit of cooperation among people.
- The 'Phoenix Ashram' established by Mahatma Gandhi in South Africa worked as a co-operative society. Each member was allotted land by this institution for cultivation on three acres of land.
- Tolstoy Farm was established to provide permanent residence to families affected by the South African War of Independence.
- For the welfare of the farmers, Gandhi ji conducted cooperative programs related to agricultural productivity during his country tour.
Cooperative Movement after Independence:
- After independence, the Government of India adopted a mixed economy by combining public, private and cooperative sectors.
- After independence the cooperative movement was promoted through five year plans.
- In 1958, the National Development Council had suggested to prepare a national policy for the training of personnel associated with cooperative societies and establishment of cooperative marketing societies.
- In the year 2002, the Government of India announced a National Policy on Cooperatives.
- The National Cooperative Development Corporation was established as a statutory body under the National Cooperative Development Corporation Act, 1962.
Formation of societies for co-operatives:
- The Rural Credit Survey Committee constituted in the year 1954 had recommended the participation of states in cooperatives at all levels.
- S.T. Raja Committee had suggested amendments in the co-operative laws.
Examples of successful cooperatives in India:
Related to Agriculture sector:
- National Agricultural Cooperative Marketing Federation of India (NAFED), National Cooperative Development Corporation (NCDC), Indian Farmers Fertilizer Cooperative Limited (IFFCO), Cooperative Rural Development Trust and Amul.
Related to Banking Sector:
- Uttar Pradesh Cooperative Bank, Punjab and Maharashtra Cooperative (PMC) Bank, Bharat Cooperative Bank and Saraswat Cooperative Bank.
Challenges before the Co-operative sector:
- There is considerable variation in the functioning of governmental and non-governmental committees.
- There is lack of transparency and accountability in the working of the boards related to these committees.
- Cooperatives are not recognized as economic resources.
- There is no platform to attract outside investment in this sector.
- There is lack of capital formation in these societies.
- People lack awareness regarding cooperatives.
Conclusion:
- Cooperatives in the country play a leading role in preserving and strengthening the social capital base.
- Also, these committees work to keep the spirit of democracy alive, so these committees should be implemented by the government with full determination.
- Since Co-operative is a ‘state subject’ under the Constitution of India and state cooperative laws, in this sense, equality should be established in the implementation of government and non-governmental cooperative societies.
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Prelims Question:
With reference to Co-operatives, consider the following statements-
- Part IXB was added by the 97th Constitutional Amendment 2011 in respect of co-operative societies functioning in India.
- The National Cooperative Development Corporation was established as a statutory body under the National Cooperative Development Corporation Act, 1962.
Which of the statements given above is/are true?
- 1 only
- 2 only
- both 1 and 2
- neither 1 nor 2
Answer: Option C
Mains Exam Question:
Mention the efforts made by the Government of India for the development of cooperatives.