Cooperation

Ministry
Arpita Sharma Classes
 a) The government announced
the formation of a separate Union
Ministry of Cooperation, a subject
that till date was looked after by the
Ministry of Agriculture.
b) The Central Government for realizing
the vision of ‘Sahkar se Samriddhi’
(Prosperity through
Cooperation) and to give a new push
to the cooperative movement.
c) The Government has signalled its
deep commitment to community
based developmental partnership. It
also fulfils the budget announcement
made by the finance minister in 2021.
The Government has signaled its deep commitment to
community based developmental partnership. It also fulfils
the budget announcement made by the Finance Minister in
2021.

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Significance of Ministry of Co-operation:
Constitutional Provisions Related to
Cooperatives:
• It will provide a separate
administrative, legal and policy a) The Constitution (97th Amendment) Act,
framework for strengthening the 2011 added a new Part IXB right after
Part IXA (Municipals) regarding the
cooperative movement in the country. cooperatives working in India.
• It will help deepen Co-operatives as a b) The word “cooperatives” was added after
true people based “unions and associations” in Article
19(1)(c) under Part III of the
movement reaching upto the Constitution. This enables all the citizens
grassroots. to form cooperatives by giving it the
• It will work to streamline processes status of fundamental right of citizens.
c) A new Article 43B was added in
for ‘Ease of doing business’ for co- the Directive Principles of State
operatives and enable development Policy (Part IV) regarding the “promotion
of Multi-State Co-operatives (MSCS). of cooperative societies”.

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‘Co-operatives’:

1. According to the International Labour Organisation (ILO), a cooperative is

an autonomous association of persons united voluntarily to meet their
common economic, social and cultural needs and aspirations through a
jointly owned and democratically controlled enterprise.
2. There are many types of cooperatives such as Consumer Cooperative
Society, Producer Cooperative Society, Credit Cooperative
Society, Housing Cooperative Society and Marketing Cooperative Society.
3. The United Nations General Assembly had declared the year 2012 as the
International Year of Cooperatives.
4. India is an agricultural country and laid the foundation of World’s biggest
cooperative movement in the world.
5. In India, a Co-operative based economic development model is very
relevant where each member works with a spirit of responsibility.

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Why was the new Ministry necessary?
i. It was necessary to restore the importance of the cooperative structure in the country.
ii. Various studies conducted by institutions like Vaikunt Mehta Institute of Cooperative
Management have shown the cooperative structure has managed to flourish and leave its
mark only in a handful of states like Maharashtra, Gujarat, Karnataka etc.
iii. Under the new Ministry, the cooperative movement would get the required financial and
legal power needed to penetrate into other states also.

What will be the new Ministry’s objectives?

o The Ministry of Cooperation will provide a separate administrative legal and policy
framework for strengthening the cooperative movement in the country.
o It will help deepen Co-operatives as a true people based movement reaching up to the
grassroots.
o In our country, a Co-operative based economic development model is very relevant where
each member works with a spirit of responsibility.
o The Ministry will work to streamline processes for ‘Ease of doing business’ for co-
operatives and enable development of Multi-State Co-operatives (MSCS).

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What laws govern cooperative societies?

1) Like agriculture, cooperation is in the concurrent list, which means both

the central and state governments can govern them.
2) A majority of the cooperative societies are governed by laws in their
respective states, with a Cooperation Commissioner and the Registrar of
Societies as their governing office.
3) In 2002, the Centre passed a Multi-State Cooperative Societies Act that
allowed for registration of societies with operations in more than one state.
4) These are mostly banks, dairies and sugar mills whose area of operation
spreads across states.
5) The Central Registrar of Societies is their controlling authority, but on the
ground the State Registrar takes actions on his behalf.

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a) Critics argue that Creation of a new cooperation ministry is an
infringement upon the federal rights of the state
governments.
b) This is an intrusion into the authority of the state governments.
This amounts to challenging the federal system of our country.
c) However, Principle of the cooperative movement is to unite
everyone, even while remaining anonymous.
d) The cooperative movement has the capacity to solve
people’s problems.

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