Chahal - July 2023 - Yojana

2 Yojana July 2023 Summary
COOPERATIVES
What is a Cooperation?
Cooperation is defined as a group of people who
have one or more similar economic demands and
voluntarily choose to combine their resources both
human and materialand use them for mutual gain
through a democratically managed enterprise.
Cooperation is a type of economic structure based

on specific life ideals. It is a voluntary and democratic
human association founded on equality of control,
opportunity, and distribution equity. Furthermore,
it stands for the promotion of producers’ and
consumers’ joint interests. All economic enterprises
are for profit, and profit is their main goal. However,
cooperation provides services to its members
without the sole purpose of profit.
What are the Constitutional Provisions for a What is a Cooperative Society?

Cooperative Society?
An autonomous open and voluntary association
i. Article 19(1)(c) of the Constitution of India of persons of the weaker section of the society, to
states that - All citizens shall have the right meet their common socio-economic and cultural
to form associations or unions [or co- needs and aspiration through a jointly owned and
operative societies]. democratic control enterprise in accordance with
ii. Directive Principles of State Policy (DPSP) the cooperative values and principles.
43B- Promotion of cooperative societies
— The State shall endeavour to promote What is National Cooperative Database?
voluntary formation, autonomous
The primary goal and purpose of building National
functioning, democratic control and
Cooperative Database is to have Information based
professional management of cooperative
Decision Support System.
societies.
iii. Part IXB of the Constitution of India • Taking the cooperatives movement in the
grants constitutional status to cooperative country to a new level by strengthening
societies and contains provisions for their grassroots-level reach and coordination of
democratic functioning. activities across sectors.
• Promoting cooperatives-based inclusive and
sustainable model of economic development.
• Easing operational processes.
Nurturing Cooperatives
Despite the fact that these cooperatives have
been in existence for more than a century, the
overall picture was not particularly pleasing. The
creation of a distinct ‘Ministry of Cooperation’
(MoC) by the Union Government on 6 July 2021
with the goal of achieving ‘Sahakar se Samriddhi’
was a momentous decision to further promote
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Yojana July 2023 Summary 3
cooperatives as a truly people-based movement the GeM platform, computerisation of Primary
reaching up to the grassroots. Agriculture Credit Societies (PACS), strengthening
multi-state cooperative societies, etc., with the aim
This was seen as a massive step towards of boosting cooperative development efforts. Not
bolstering the nation’s cooperative movement and only this, MoC has also actively collaborated with
recognising the power of our cooperatives, which stakeholders in gathering, compiling, analysing,
place people before capital and operate as people- and resolving a variety of problems and concerns ‘
centric businesses. This Ministry provides a separate to improve the business climate for the cooperative
administrative, legal, and policy framework to sector, streamlining processes for ‘Ease of Doing
support the development of cooperatives and Business’.
make them more competitive. Such an alteration
in structure is the need of the hour to transform Cooperatives played a significant role in developing
cooperatives into a viable and thriving business an economic model for rural development. The
model in the existing socio-economic environment. establishment of MoC, a reviving step by the
Government will certainly bring transparency and
Since inception, the Ministry has been successful expand the reach of cooperatives to the grassroots
in obtaining approval for significant policies, across the country.
including bringing cooperative societies on

SAHAKAR SE SAMRIDDHI From

PLANNING TO REALISATION
The phrase “cooperation” denotes the

trustworthiness of a team and clarifies the
terminological claims “saha” and “karya,” which
both imply “working together.”
The increasing complexities of human life, the

expanded space of unfulfilled modern-day public
preferences and aspirations, the drives and needs
for continuous progress and prosperity, and the
appropriateness of various kinds and degrees
of cooperation have resulted in the creation of
a separate administrative agency - Ministry of
Cooperation (MoC) on July 6, 2021.
The motive is to harness cooperation for prosperity

and progress, with a call for “Sahakar se Samriddhi”
(Prosperity through Cooperation).
Sahakar se Samriddhi has underlined the

government’s tactics as well as its aims, sending
a clear message of collaboration as a vehicle Cooperation has enormous abilities to ensure all-
for achieving economic freedom, self-reliance, inclusive economic growth. E.g., Anand Milk Union
and social justice through community-led and Limited (Amul) by forming farmer cooperatives
community-owned entrepreneurial endeavours. for the production and marketing of milk through
collectivised efforts which made Amul a global
Overview of the cooperative movement dairy brand by duly justifying the eternal principles
• India is home to 8.54 lakh cooperatives of Indian Cooperatives.
present in 98% of the villages and has 29
crore members. 80% of these cooperatives
are non-credit cooperatives and 20% are
credit cooperatives.
• The first recognition of the cooperative
movement started in 1904 with the
promulgation of the Cooperative Credit
Societies Act.
• After the Maclagan Committee Report
on Cooperatives (1914-15), the cooperative
movement underwent a transition from
primarily focusing on providing relief to
becoming a movement with the aim of
improving socio-economic welfare.
• Post-independence, the cooperative movement
received due recognition in the perspective plans
of the Government of India.
Principles of Indian Cooperatives Addressing hurdles and challenges through

Indian cooperatives prioritise people over capital appropriate policies and effective government
and function as people-centric organisations. These interventions is necessary to unleash the full
bring collective cohesiveness, community business potential of cooperatives. This can be achieved by
sense, and enhanced social bonding by adhering to utilizing the 4Ps and 4Es framework.
seven golden principles of cooperation.

• Integrating PACS with FPOs: This will help
PACS to extend their scope of activities
and take up high-income enterprises like
beekeeping, mushroom cultivation, etc.
• PACS in the Oil and Energy Business:
PACS can avail licenses for petrol and diesel
dealerships and LPG distributorships,
and they will also be engaged in the
implementation of various renewable
energy schemes.
4. National Cooperative University: It
will help to establish a comprehensive,
integrated, and standardized structure
of cooperative teaching and training and
meet the demand for capacity building of
the existing workforce.
5. Cooperative database: The Ministry of
Government commitments to Indian Cooperation is developing a comprehensive
cooperative movements cooperative database to capture authentic
and updated data on cooperatives of all
1. Cooperative ‘SQUAD’: The government
sectors to support policy formulation.
has formulated a plan which prioritises
and explores new emerging areas for Other initiatives:
cooperatives through the ‘SQUAD’
• Computerization of 63,000 functional
framework.
primary agricultural credit societies.
• Cooperative societies as registered buyers
and sellers on the Government e-market
platform (GeM).
• Setting up the National Export Cooperative
Society to promote exports from
cooperatives.
• Establishing a national organics
cooperative society to promote organic
products.
• Setting up the National Export Seed
Cooperative Society to promote production
preservation certification and distribution
of quality seeds.
• Creating 2 lakh new multi-purpose PACs
2. National cooperation policy: Suresh to cover all 2.54 lakh panchayats.
Prabhu committee has been set up to
Challenges in ensuring smooth and sustainable
formulate an all-inclusive policy for the
growth of the cooperative sector:
uniform cooperative movement.
• Resolving regional and sectoral inequities
3. Strengthening Primary Agriculture Credit in cooperative growth.
Societies (PACS): • Navigating a complex regulatory structure
• Model By-laws for PACS: 22 states have that spans many states.
adopted model-by-laws to enhance • Improving governance, leadership,
operational efficiency, transparency, and operational mechanisms, as well
and responsibility towards collective as assuring professional cooperative
community development. management.
• PACS as Common Service Centres (CSC): • Creating an effective interaction and
PACS can register as CSCs to diversify their cooperation among cooperative registrars
business for self-sustenance. at the national, regional, and state levels.

• Improving basic infrastructure and Indian economy while increasing farmer income.
promoting the establishment and growth
of new cooperative societies and social The actual realisation of the Sahakar se Samriddhi
cooperatives. vision is dependent on community business units
effectively tapping into the natural potential of
Conclusion people’s collective activity while adhering to the
Cooperatives’ contributions will have a multiplier underlying concept of the cooperative-based
effect on the goal of building a five trillion-dollar model for socioeconomic advancement.

STRATEGIC DIVERSIFICATION OF
COOPERATIVES AND BUSINESS
COMPETITIVENESS
The Indian cooperative movement registered • Implementation of Strategy: Person

smooth and impressive progress until the 1970s. But responsible for implementation should be
due to certain issues, policy makers and planners given charge of the available and allotted
slowly reduced their focus on cooperation-led resources, personnel, and ways and means
socio-economic development. for achieving the strategy.
• Monitoring of the Strategy: The last step is
Cooperation is entrenched in the philosophy of
to monitor the strategy against the agreed
India. The Ministry of Cooperation was formed with
timeline/verification pattern to carry out a
an objective to provide a distinct administrative,
mid-term/periodic review about the success
legal, and policy agenda for reviving, reorganising,
of activity intervention and take up corrective
and modernising cooperatives. The need of the
actions, if any.
time is to empower cooperatives to compete on
par with corporate business entities.
Need for Business Diversification

• In order to remain relevant and competitive,
cooperatives from the community level to
the national level need to diversify their
businesses.
• To be commercially viable, a company must
explore outside its primary clients and
markets.
• It must investigate new product and service
market opportunities. Without diversification,
stagnation sets place, limiting the company’s
future growth.
• Furthermore, strategic diversification forces
a business to take steps that can ensure its
market relevance, as investments in R&D,
marketing, product development, and so on Conclusion
can cause a business to identify customers
whose needs have not yet been met and to The Ministry of Cooperation, under the able
identify blue ocean markets, allowing it to guidance of the Minister, needs to ensure attaining
earn profit and wealth in the long run. competitive advantage of cooperatives through
strategic diversification. This requires a careful
Business Diversification by Cooperatives analysis of information about the strengths,
mission, and values, as well as involvement and
• Goal Setting: Decide the exact nature and
support from members throughout the process of
purpose of goals.
strategic management.
• Goal Analysis: Assessment of goals
by conducting a Strength, Weakness, By leveraging the unique strengths and capabilities
Opportunity, and Threat (SWOT) analysis. of cooperatives and aligning diversification
• Strategy formulation: The next step is to opportunities with its mission and values,
formulate a strategy through which the cooperatives can drive growth and competitive
goals can be achieved by means of reflection, advantage in new markets and product lines.
prioritisation, and development of options for Strategic diversification can aid cooperatives in
decision-making purposes. India in growing their customer base, reducing their

dependence on specific markets, and better serving strategic advantage and position, thereby helping
their members’ requirements. If the cooperatives cooperatives actualise business profits with
can meet the demands of markets, they will inclusiveness through strategic diversification of
have a greater chance of being relevant in target their activities.
market. In the long run, it may aid in developing
Diversification Decisions of Cooperatives
Types Ways of Diversification

Product Diversification Cooperatives can diversify their product /service
offerings to meet the needs of new markets or due
to change in customer tastes and preferences.
E.g., Amul introduced ice creams and other frozen

confectionaries in 1996.
Geographic Diversification Cooperatives diversify their product offerings to

reach new markets and customers to satisfy their
needs.
E.g., Karnataka Milk Federation’s milk brand ‘Nandini

Goodlife’ is available across various states.
Service Diversification Cooperatives offer new services, apart from their

primary products and services, to meet the needs
of their members and customers.
E.g., Anjarakandi Urban Cooperative Bank in Kerela,

sells coconut-based products - water/milk/oil etc.
apart from Banking services.
Joint Ventures Cooperatives can form Joint Ventures to pool
resources and expertise.
E.g., Indian Farmers Fertiliser Cooperative Limited

(IFFCO) formed a JV with Spain’s Congelados De
Navarra to set up a food processing plant in Punjab.
Vertical integration Cooperatives can vertically integrate by including

upstream or downstream activities from their
current operations.
E.g., Amerli District Cooperative Milk Producers

Union and IFFCO Kisan Sanchar have a joint venture
for high-quality animal feed supply.
Horizontal integration Cooperatives can horizontally integrate their

operations by merging with or acquiring other
cooperatives or companies operating in the same
industry, which can result in the achievement
of significant economies of scale giving various
benefits to their customers and stakeholders.
E.g., Centrum Finance Ltd acquired Punjab and

Maharashtra Cooperative Bank to expand their
market.

EMPOWERING AGRICULTURE
COOPERATIVES THROUGH
DIGITISATION
Cooperative credit institutions have long been a (CORE) based Banking Solutions (CBS) have
driving force in India’s social and economic growth. automated State Cooperative Banks (StBs)
These institutions, particularly in rural areas, play an and District Central Cooperative Banks
important role in agricultural credit mobilisation. (DCCBs), improving regulatory mechanisms
and enabling anytime, anywhere banking.
Cooperative Credit Institutions • Efficiency and governance across cooperative
• The short-term rural cooperative credit banks can be improved by adopting
structure (STCCS) is a 3-tier structure which standardized technology-driven office
comprises State Cooperative Banks (SCBs), management systems.
District Central Cooperative Banks (DCCBs)
and Primary Agriculture Credit Societies
(PACs) at the village level. (ii) Technology Adoption for PACS:
• They are regulated by the Reserve Bank of • While DCCBs require the digitization
India (RBI) and supervised by the National of business processes, PACS need to be
Bank for Agriculture and Rural Development computerized as a fundamental step towards
(NABARD). efficiency.
• They provide essential credit mobilization
in agriculture production but also serve as • The computerization of PACS aims to
catalysts for self-help, grassroots community enhance service delivery, digitize operations,
participation, and social control over resource and integrate them with DCCBs and StBs.
allocation and mobilization. • However, challenges such as inadequate
• The objective of this model is to provide rural infrastructure, power supply, internet
timely, adequate, and affordable cooperative
credit to the farmer members, and to realise connectivity, and computer skills must be
social, economic, and political objectives addressed.
ranging from self-help and grassroot level
community participation to production, (iii) Technology Adoption for Customer
distribution, and social control over resource Interface, Service Delivery, and Decision
allocation and mobilisation. Making:
Issues and Challenges faced by Cooperative • Need to adopt technologies such as mobile
Credit Institutions banking, internet banking, drones for field
monitoring, and blockchain for cybersecurity
• Face stiff competition from commercial and transparency.
banks and microfinance institutions in the
rural credit sphere. • Need for collaborative partnerships with
fintech firms to facilitate customer acquisition,
• Inability to implement cutting-edge credit profiling, advisory services, financial
technology. products, and development of user-friendly
• Reliance on traditional services (short-term digital interfaces.
loans) rather than utilising services such as
financial consulting and marketing. Conclusion
• Lack of innovation. Digitization has enormous potential for
Way Forward: Empowering Cooperative Credit strengthening cooperative credit institutions and
Institutions through Technology propelling rural development. Digitization allows
for more seamless integration, improved service
Technology adoption and process digitisation delivery, and financial inclusion. Cooperative credit
have a tremendously empowering impact on the institutions may use digitalization to efficiently
cooperative credit architecture. handle the increasing requirements of Indian
agriculture, contributing to the development of
(i) Digitization of STCCS: rural communities with the correct policy backing
• Centralized Online Real-time Exchange and a targeted approach.

USHERING DEVELOPING
PATHWAYS FOR NON-CREDIT
COOPERATIVES
With approximately 8.5 lakh cooperative societies wrong.

and a membership of 29 crore people, cooperatives
have played a significant role in the Indian economy. Their success can be attributed to
However, the growth and evolution of cooperatives • well-functioning end-to-end supply

vary across states due to diverse focus areas integration chain
adopted by state administrative machinery. • diversification of products and marketing
• technological advancements
Structure of Cooperatives in India • professional management
Cooperatives’ success depends on their formation These success stories highlight the potential of
and operation, particularly on traits such as cooperatives, especially in the food processing
voluntary participation, equal representation, sector, to contribute to India’s economy.
professional management, and a higher profit
share due to the absence of intermediaries. In this
Way Forward
context, this article focuses on the paths that non-
credit cooperatives might take to sustain, grow, Because of their uniqueness, non-credit
develop, and increase their competitiveness. cooperatives in India necessitate a tailored
approach. Recognising this, it was decided to
Cooperative structure in India establish a national-level agricultural cooperative
association.
• Cooperatives operate under the Cooperative
Society Act 1912, which includes the
(a) Convergence
Cooperative Thrift Society Act and the Multi-
State Cooperative Societies Act 2002. • Indian cooperatives can register as MSMEs
on the Udyam Portal.
• There are two types of cooperative structures:
• Cluster-based programmes subsidise shared
¾ State Cooperative Societies (come under
infrastructure, processing centres, and skill
State Government)
development.
¾ Multi-State Cooperative Societies (come
• Udyam certification is the essential
under the Central Government)
document required to get programme
• Although informal, SHGs may also be benefits.
considered as rudimentary cooperatives,
• This simplified approach is consistent with
functioning albeit, at a smaller-scale
the “Whole of Government Approach” and
and generally more focused on relatively
offers cooperatives MSME designation for
disadvantaged groups like women.
priority sector lending.
• Large-scale cooperatives, on the other hand,
are commercially more concentrated in (b) Awareness, Training, and Mentoring:
terms of products or functions. • Increasing awareness among students regarding
cooperatives as a potential employment option.
Impact of Globalization on Cooperatives:
• Capacity building for cooperative staff is
It was largely believed that the advent of accomplished through training programmes
globalisation would impede development of and skill development.
cooperatives. However, the success of certain
• Mentorship programmes can help larger
cooperatives like Amul, Horticultural Producers’
cooperatives and state-level cooperatives
Cooperative Marketing and Processing Society
collaborate on similar projects.
(HOPCOMS), Indian Farmers Fertiliser Cooperative
Limited (IFFCO) etc. have proved this supposition • Promoting knowledge exchange and
collaborative creativity.

(c) Technology and Digitization: Conclusion
• Cooperatives must embrace digitization
The government’s emphasis on collaboration and
in order to upgrade their production,
growth underlines its dedication to socioeconomic
technology, and business models and stay
development driven by local communities. India
competitive.
may realise its full potential by incorporating
• Cooperatives may benefit from government
state cooperatives into multi-state organisations
assistance throughout this transition,
and placing a strong emphasis on convergence,
including subsidies and credit facilities.
awareness, training, mentoring, technology
• Establishing a physical infrastructure and
advancement, and digitization.
connecting cooperatives to pertinent cluster
programmes.

COOPERATIVE
ENTREPRENEURSHIPS FOR
ECONOMIC DEVELOPMENT
Cooperative movements and entrepreneurship are grassroots

historically rich and diverse in India. Cooperative • Social bonding and cohesion
entrepreneurship focuses on quality employment
generation, wealth creation, and optimum use of • Control and dignity of the workplace
available resources at the community level. In India, cooperatives account for:
A cooperative’s ability to succeed depends on the ¾ 19% of our agricultural financing

effectiveness of its relationships with its members, ¾ 35% of fertiliser distribution and 30% of
management, and leadership. Every stakeholder fertiliser production
must be aware of their duties, and the cooperative
¾ 40% of sugar production
must maintain open lines of communication with
all members and management. Regular training of ¾ 13% of wheat procurement and
the cooperative enterprise’s members, managers, ¾ 20% of paddy procurement
and leaders is a must for the cooperative’s growth.
Throughout the country, numerous cooperative
The Union Government, through schematic business models exist to meet the needs of both
interventions, has extended support services to members and non-members.
strengthen cooperative entrepreneurship in India.
¾ The World Cooperative Monitor 2022
includes sixteen Indian cooperatives in the
Cooperative Entrepreneurship ‘Turnover over GDP Per Capita’ category.
• Cooperative entrepreneurship is a form of This includes:
collective or joint entrepreneurship. ¾ Indian Farmers Fertiliser Cooperative
• A ‘cooperative entrepreneur’ is purely a Limited, New Delhi (IFFCO)
social leader with a vision to develop strong ¾ Gujarat State Cooperative Milk and
methods for democratically managing Marketing Federation, Anand, Gujarat
company operations rather than for personal
gain. ¾ Seven state cooperative banks e.g.
Kerala, Maharashtra Karnataka and
• Cooperative leaders are determined and Pradesh, etc.
committed to their work, have the ability to
innovate and ‘think outside the box,’ and are Growth Potential
prepared to take risks.
• Solving community problems and observing
• Democratic governance based on one sectoral trends are two efficient ways to
person, one vote, and equality are the pillars identify potential cooperative formation
of governance of cooperatives. chances.
• Solving community problems, and observing • In emerging economic sectors including
sectoral trends are two effective methods manufacturing, services, renewable
for fitting chances for the creation of energy, tourism, transportation, handloom,
cooperatives. handicraft, health, student/campus consumer
cooperatives, etc., there is a significant
Objectives and Significance of Cooperative possibility to start and grow cooperatives.
Entrepreneurship
• The social welfare sector has enormous
• Focuses on quality employment generation potential, which is typically not economically
• Wealth creation feasible for other kinds of commercial firms.
• Optimal use of available resources at the
Challenges
community level
• Difficulty in gaining access to capital.
• Potential to deliver goods and services at the

• The scope of operations or membership is • Modern management methods to achieve
frequently constrained by law. the objectives of unity.
• Due to democratic decision-making, etc.,
Conclusion
the operations and processes are costly and
time-consuming. With government support through initiatives like
Sahakar se Samridhi and the establishment of
Way Forward a distinct Ministry of Cooperation, better sector
• Through strategic management, invention, expansion is anticipated. Inclusion of young people
and creativity, cooperative entrepreneurship and women who possess cooperative ideals and
must seek to enhance the functioning of knowledge can also aid in speedier growth.
cooperative societies.
The ideal recipe for leading a simple and happy life
• The cooperative society’s governance is the list of eleven vows presented previously in the
structures must be flexible. text. It is the best embodiment of the phrase “Live
• Human resources that are qualified, and Let Live.”
competent, and devoted must be used.

ATMANIRBHAR BHARAT
THROUGH COOPERATIVES
Cooperation’ has remained the philosophy of India, • We need innovative systems that conserve,
and the cooperative movement is the backbone protect, and enhance the natural resource
of the rural economy. Presently, around 29 crore base while increasing productivity. It requires
people in the country are directly linked with India’s a transformative process towards ‘holistic’
cooperative sector. approaches that also build upon indigenous
and traditional knowledge, and recognise
Cooperatives are seen by the Government as the the importance, centrality, and criticality
most appropriate alternative model through which of community-based institutions like
the country can realise its dream of becoming cooperatives.
an all-inclusive economy and realise the vision of
• Farmers have to be actively and effectively
Atmanirbhar Bharat.
engaged through their own cooperatives to
enhance soils and protect biodiversity while
Socio-Economic Empowerment Effects of improving crop resilience, productivity, and
Cooperation livelihoods. We must deploy nature-based
• Cooperatives are the purest and natural solutions to support agricultural production
form of economic and business enterprise, while helping to regenerate ecosystems.
synergetic with the resources bestowed by • Agricultural support and food security
Mother Nature. programmes entail heavy financial and
• Cooperatives are the best instruments of governance burdens for the Government.
social and economic policy and programme India’s strong cooperative roots and strategic
implementation as they have inherent focus on the agricultural sector provide
advantages in tackling the problems of enough justification for the Government to
poverty alleviation, food security, and move out of the front line of food production
employment generation. and food security management and hand it
• These have immense potential to deliver over to the farmer cooperatives.
goods and services at the doorstep without
any hassles, as they are people-centered Sahakar Grams - The Future
citizen organisations. • Through appropriate policies and incentives,
• In cooperative enterprises, people can reach Government should encourage farmers to
economic objectives by joining forces and organise themselves into cooperative folds,
pooling their resources, which an individual and every village in the country should be
would be unable to achieve. encouraged to move towards ‘Atmanirbhar
Sahakar Grams’.
• Cooperative enterprises can facilitate and
ensure market access, create economies of • The concept of ‘Sahakar Grams’ is for shifting
scale and scope, and establish independent the gravitational forces of agriculture
market positions. As a consequence, they development and food management to the
are capable of leaving a positive mark on a villages and farmers.
country’s economic and social structures. • Under this approach, the farmers will
be encouraged to pool their natural and
Cooperatives, Agriculture and Food Security economic assets to ensure their efficient
• India needs novel ways to achieve farm and sustainable use, preservation, and
prosperity and sustainable food security. In conservation.
order to achieve this, transformative and • Rational and efficient management of land,
disruptive changes, and innovation at every water, and cattle resources would ensure
point along the food production, supply, and that there is no wastage and chemical inputs
consumption chain are required. are used only when there is no alternative.

National Cooperative Food Grid be a significant step towards achieving self-
• The government may consider establishing sufficiency in India through a bottom-up
a “National Cooperative Food Grid” (NCFG). approach.
Every Indian community should have a single • A farmer must be empowered to have his
farm cooperative that runs and manages ‘choice’, ‘voice’, and ‘price’.
all of its economic activities on cooperative
principles. This will lower production costs Conclusion
while increasing productivity. Efficient agriculture production system
• Every village cooperative should have farm management, food security, and food supply chain
machinery and a cattle management centre. management, energy security through clean
Two or three of these village-level cooperatives and green routes, preserving natural resources,
should work together to establish one Multi- mitigating adverse effects of climate change, and
Purpose Village Cooperative Society (MPVCS)
with storage, sorting, grading, packing, protecting and preserving social harmony are the
and trading facilities for perishables and main future challenges for the country, and this is
non-perishables. This MPVCS should also where enormous opportunities lie for cooperatives.
be able to offer credit to its members and
Cooperatives are the most appropriate institutional
operate green energy, tourism, consumer,
form for harnessing these opportunities, and a true
health, and education centres, including
cooperative value -based entrepreneurial initiative
vocational training centres. MPVCS should
can never fail, whatever the overall economic and
also be established as the exclusive agency
market condition be.
in charge of the government’s food security
programmes. The route for ‘Developed and Atmanirbhar Bharat’
• The Ministry of Cooperation’s recent effort essentially passes through its people, villages, rivers,
to establish 2 lakh additional multi-purpose agricultural land, natural resources, and deep and
cooperatives at the community level would strong cooperative roots.

FISHERY COOPERATIVES
Fisheries is a sunrise sector in India. It has immense fisheries and aquaculture infrastructure.
economic potential in India that has a coastline of • Blue Revolution: It was introduced in 2014 to
over 8,000 km, an exclusive economic zone of over encourage fish production and infrastructural
2 million square km, and has extensive freshwater development in the fisheries sector.
bodies. The Fisheries sector is quite diverse with
sub -sectors like marine, inland, and brackish water, • Atmanirbhar Bharat Package: The Prime
Minister announced a Rs.20 lakh crore
besides cold water and ornamental fisheries.
economic package to create jobs in the
fisheries sector.
Significance of Fisheries sector
• India is the 3rd largest fish-producing Fishery Cooperative Movement in India
country in the world, contributing 7.93% • The fishery cooperative movement in India
towards global fish production, and is the began in 1913, when the first fishermen’s
second largest among the aquaculture fish- society, the ‘Karla Machhimar Cooperative
producing countries globally. Society’, was formed in Maharashtra.
• The fisheries sector plays an important role in • Fisheries cooperatives have received primary
the Indian Economy. It contributes to around attention and actual focus since the creation
one percent of the national GDP. of the Ministry of Cooperation.
• It provides livelihoods to more than 2.8 crore
• National Database of Fisheries Cooperatives
fishers and fish-farmers.
• A decision has been taken that every
• The country has annual export earnings of
panchayat in the nation would have a fishery
over Rs. 50,000 crore from the fisheries sector.
cooperative organised, with the goal of
Role of Fishery Cooperatives reaching 2 lakh members in the next five
• Fishery cooperatives can provide livelihood years.
security, nutritional security, and social • In collaboration with the relevant State/
security to vulnerable groups in society. UT authorities, the National Fisheries
• Around 4 million people are economically Development Board (NFDB) and FISHCOPFED
benefited through primary fishery have been tasked with accelerating the work.
cooperatives in India. • The database can be used to pinpoint any
• The role of fishery cooperatives must be gaps in the industry, and work will be done to
considered at every level in the changed close those gaps.
economic scenario, and they should
Fishery Success Stories
be supported with funds to develop
infrastructures and a progressive supply and Some of the state federations are doing excellent
value chain for sustainability. work in the fisheries field, such as Matsyafed
in Kerala, Gujarat Fisheries Central Cooperative
Fishery Development: Government of India’s Association (GFCCA) in Gujarat, and Benfish in West
Thrust Bengal beside others. Most of these cooperatives
• The Pradhan Mantri Matsya Sampada have excelled in production, marketing, and
Yojana (PMMSY): To boost India’s economy providing services to members. There is a need to
through the fisheries sector, the Pradhan focus on the working of the district-level federations
Mantri Matsya Sampada Yojana (PMMSY) and define their role more proactively to guide the
was launched in the year 2019-20 with a total primary fishery cooperative societies.
project outlay of Rs 20,050 crore. • Matsyafed-Kerala: Established in 1984, this
• Fisheries & Aquaculture Infrastructure state-level federation excels in fish sales,
Development Fund (FIDF): A dedicated fund exports, and retail outlets, and operates its
of Rs 7,522 crore was established to develop own mat-making and processing plants.

• Gujarat Fisheries Central Cooperative The role of fishery cooperatives must be considered
Association (GFCCA): Registered in 1956, at every level in the changed economic scenario,
GFCCA operates diesel outlets for fishing and they should be supported with funds to develop
boats and successful fish retail outlets in infrastructures and a progressive supply and value
Delhi. chain for sustainability.
Conclusion The Government of India is committed to uplifting

the fishery cooperative sector through adequate
The fishery cooperative sector can provide livelihood
policy and financial support.
security, nutritional security, and social security to
the vulnerable groups in our society. There is an The synergy between the Ministries of Cooperation
urgent need for the adoption of digital technology and Fisheries is expected to drive the sector’s
by fishery cooperatives to provide their services growth.
at the doorstep and play a key role in providing
nutritious food to the people.

ONE PACS ONE DRONE
The Government of India is giving increasing focus Agricultural Mechanisation (SMAM)

on strengthening the Cooperative movement have been amended which envisages
across the nation. To make the dream of ‘Sahakar granting upto 100% of the cost of a drone
se Samriddhi’ a reality, Primary Agricultural Credit or Rs 10 lakh, whichever is less, as a grant
Societies (PACS) must be strengthened. PACS for the purchase of drones by the Farm
constitute the lowest tier of the 3-tier Short-Term Machinery Training & Testing Institutes,
Cooperative ICAR Institutes, Krishi Vigyan Kendras
(KVK), and State Agriculture Universities
Credit (STCC) in the country, comprising for taking up large scale demonstrations
approximately 13 crore farmers as its members, of this technology on the farmers’ fields.
which is vital for the development of the rural
¾ The Farmer Producer Organisations (FPOs)
economy.
would be eligible to receive a grant of up to
75% of the cost of the agriculture drone for
Government initiatives
its demonstration to the farmers.
• Strengthening Primary Agricultural Credit
Societies (PACS): Why drone in Agriculture Sector?
¾ Financial assistance and training are being • Issues concerning the agriculture industry:
provided to strengthen PACS. Low yield, soil erosion, lack of irrigation
¾ This will enhance services to farmers and facilities, inefficient use of inputs, unscientific
promote rural development. use of fertilizers, lack of post-harvest
management, limited access to financial
• Liberalised Drone Rules 2021: services etc.
¾ The Ministry of Civil Aviation announced • Potential of Fourth Industrial Revolution
the liberalised Drone Rules 2021. technologies: Digital tech-based agriculture
¾ The rules aim to make India a global drone can unlock a value of $65 billion by 2025, with
hub by 2030. a significant impact on GDP.
¾ Easier and faster approvals for drone • Importance of drones in agriculture:
operations in India. Drones offer solutions such as land mapping,
¾ Creation of a drone promotion council to agrochemical spraying, seeding, crop yield
facilitate a regulatory environment for the assessment, and drone-based analytics.
drone industry. • Cost effective and health benefits:
• Production-Linked Incentive (PLI) Scheme: Agrochemical spraying with drones gives cost
savings of 25-90% on inputs, 90% reduction in
¾ In order to boost the manufacturing of
skin exposure, and improved crop yield.
drones in India, the Central Government
approved Production-Linked Incentive • Advantage of mapping: Precision agriculture
(PLI) scheme for drones and components and the reduction of land disputes can
worth Rs.120 crore and putting import be achieved through drone-based land
bans, paving the way for the domestic mapping.
manufacturing sector. • India has low levels of farm mechanisation:
• Strengthening Cooperative Movement: Northern states have adoption rates of 70-
80%, but still lower compared to countries like
¾ The government is giving increasing focus
China, Brazil, and the United States. Drones
to strengthen the cooperative movement
can help increase productivity and minimize
nationwide.
input costs.
• Grants on Drones
• Pest control: Drones can effectively spray
¾ The guidelines of the Sub-Mission on pesticides, fungicides, and liquid fertilizers to

combat pest infestations and their impact on ¾ can transform Indian agriculture
crops. ¾ increase GDP by 1-1.5%
• Support for farmers: Drones offer cost ¾ Create 5 lakh new jobs and usher in a
reduction and optimization of input use, with digital era of prosperity
various applications like surveying, seeding,
• Eligible rural entrepreneurs with pilot licenses
spraying, and pollination.
can fly agricultural drones
One PACS One Drone: Action Required & • Guidelines provide a net annual profit range
Benefits of Rs 5 to 6 lakhs for PACS members.
• The Government has decided to establish
Conclusion
multipurpose PACS across the nation.
Providing each PACS with one drone will Drones in the cooperative sector in India have
strengthen its economic condition. Grant the potential to transform the rural economy. The
of 75% of agricultural drone cost for PACS, government’s attempts to boost drone production
similar to FPOs would be of great help, if and enhance PACS are positive steps. India can
become a worldwide leader in the drone business
given.
and realise its aim of ‘Sahakar se Samriddhi’ with
• Drones the appropriate policies and investments.

REGENERATIVE AGRI-SUPPLY
CHAIN MANAGEMENT
Supply chains concern themselves with the flow of their emphasis has switched to high-quality
products and information amongst the members produce.
of the supply chain organisations. The real measure • Cooperative marketing societies have
of the success of any given supply chain is how well advanced towards better storage facilities,
activities coordinate across the chain to create value effective resource management, prompt
and profitability of every relation within the supply payment to farmers, and waste minimization;
chain. Agriculture Supply Chain Management and they have transitioned to regenerative
(ASCM) is concerned with the efficient flow of supply chains by implementing sustainable
agricultural commodities from farmers to fork via practises.
logistics flows, transporters, shops, procurement,
warehousing, inventory management, and Primary Agricultural Credit Society (PACS)
processing. However, these supply chains are Storage & Supply Chain Management
often challenged by various factors such as climate
• Multi-purpose centres: Primary Agricultural
change, market volatility, market price rate, and
Credit Society (PACS) serves as a multi-
supply chain disruptions. The transformation to a
purpose centre that helps farmers achieve
smart, regenerative supply chain frees agriculture
credit obligations while also assisting them
from social and environmental pressures. in acquiring and marketing agricultural
Importance of Supply Chain Management products.
• Ensure food security and long-term • Quality inputs for farmers: PACS’s storage of
agricultural development by connecting agricultural equipment and agri-inputs can
stakeholders, vz. Farmers, processors, help to guarantee that farmers have access
collectors, wholesalers, distributors, retailers, to high-quality inputs.
and consumers. • Common service centers: By easing the
• Helps farmers in procuring, marketing, and supply of services to villages, PACS serve as
distributing commodities. common service centre.
• Necessitates the proper allocation of resources
to deal with storage issues, transportation
issues, and inventory management.
Cooperatives in Agri-supply Chain

• Cooperatives contribute to the agricultural
supply chain by providing technical, financial,
and operational assistance.
¾ Farmer Producer Organisations (FPOs),
for example, are in charge of business
activities such as bulk purchasing of
agricultural supplies and enabling credit
requirements.
• They act as a platform for commodity
information transfer, marketing,
transportation, and distribution.
• They assist in obtaining quality output by
offering Agri inputs (seeds, fertilisers, and
so on) and extending financing facilities.
In addition to marketing and processing,

Initiatives management is a key factor in success.
• The Ministry of Cooperation has set up of three • Managing supply chain risk: Cooperatives
sector-specific national level cooperative must manage supply chain risks related
societies: to marketing, quality standards, and the
¾ Seed societies: helps with seed production, availability of human resources, among other
processing, storage and distribution things. Digitalization and data analytics can
be used to manage supply chain risk.
¾ Export societies: helps in procurement,
storage, processing, marketing, branding, Conclusion
packaging
Cooperatives have gained from the shift to a
¾ Organic societies: offers certification regenerative supply chain in terms of the economy,
and standardization to the market via society, and environment. Antecedents like
laboratory networks institutional support,
Way Forward organisational restructuring, network and
• It is necessary to investigate how our symbiosis, training, technical knowhow, agri input
understanding of byproducts and their uses facilities, knowledge dissemination, adequate
might be expanded. infrastructure, quality storage, capacity building,
• Sensitization: The degree to which the training, promotional activities, market awareness,
participants have been made aware of data analytics, and monitoring will help in the
recent developments in the supply chain transformation towards better supply chain
and how they might be applied to efficient management by cooperatives.

World’s Largest Grain

Storage Plan
¾ For the purpose of facilitating the World’s

Largest Grain Storage Plan in Cooperative
Sector, an Inter-Ministerial Committee
(IMC) has been established and given
authority. This will be accomplished
through the coordination of numerous
programmes run by the Ministries of
Food Processing Industries, Consumer
Affairs, and Food and Public Distribution.
¾ The Ministry of Cooperation will carry
out a pilot project in at least 10 carefully
chosen districts across various States and
UTs in the nation in order to guarantee
the Plan’s timely and uniform execution
in a professional manner. The pilot
would offer insightful information on the
project’s diverse regional requirements,
and its lessons will be appropriately
applied to the Plan’s implementation
across the entire nation.

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8917
DEHRADUN
NEW DELHI
KANPUR
JAIPUR PATNA
AHMEDABAD
RAJKOT
KOLKATA
ANAND
RANCHI
VADODARA
SURAT BHILAI
RAIPUR
HYDERABAD
J JAIPUR : 9625994037 Rajkot: 76240-11227
Office No. 7, First Floor Ridhi Sidhi 3rd Floor,Balaji House 52 Janta
Society, Above FabIndia,Opp LIC
Crossing Mansarover Link Road, Of India, Tagore Road, Mahila
Gopalpura Bypass, Jaipur-302015 College Chowk, Rajkot 360001,
Gujarat.
D South Delhi (Satya Niketan) 96259-21997 72840-11227

72848-11227
299, 3rd Floor, Satya Niketan, Opposite
Sri Venkateswara College, Near Durgabai
Deshmukh South Campus Metro Station,
New Delhi - 110021.
Kolkata : 72850-11227
Ahmedabad-72659-91227 First Floor, Sunidhi Building,
104, First Floor, Ratna Business Square, Above PNB, 120 Lenin Sarani
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Ahmedabad - 380009, Gujarat. Bengal.
Mumbai : 99091-11227
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2 Yojana July 2023 Summary

Cooperation is a type of economic structure based

What are the Constitutional Provisions for a What is a Cooperative Society?

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

SAHAKAR SE SAMRIDDHI From

The phrase “cooperation” denotes the

The increasing complexities of human life, the

The motive is to harness cooperation for prosperity

Sahakar se Samriddhi has underlined the

Principles of Indian Cooperatives Addressing hurdles and challenges through

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

The Indian cooperative movement registered • Implementation of Strategy: Person

Need for Business Diversification

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

Diversification Decisions of Cooperatives

Types Ways of Diversification

E.g., Amul introduced ice creams and other frozen

Geographic Diversification Cooperatives diversify their product offerings to

E.g., Karnataka Milk Federation’s milk brand ‘Nandini

Service Diversification Cooperatives offer new services, apart from their

E.g., Anjarakandi Urban Cooperative Bank in Kerela,

E.g., Indian Farmers Fertiliser Cooperative Limited

Vertical integration Cooperatives can vertically integrate by including

E.g., Amerli District Cooperative Milk Producers

Horizontal integration Cooperatives can horizontally integrate their

E.g., Centrum Finance Ltd acquired Punjab and

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

With approximately 8.5 lakh cooperative societies wrong.

However, the growth and evolution of cooperatives • well-functioning end-to-end supply

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

Cooperative movements and entrepreneurship are grassroots

A cooperative’s ability to succeed depends on the ¾ 19% of our agricultural financing

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

Conclusion The Government of India is committed to uplifting

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

ONE PACS ONE DRONE

The Government of India is giving increasing focus Agricultural Mechanisation (SMAM)

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

Cooperatives in Agri-supply Chain

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

World’s Largest Grain

¾ For the purpose of facilitating the World’s

• NEW DELHI • MUMBAI • KOLKATA • AHMEDABAD • ANAND • BHILAI • BHUBANESWAR• CHANDIGARH

D South Delhi (Satya Niketan) 96259-21997 72840-11227

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