Sambhav-2024

• Start the answer by providing a brief overview of the cooperative societies.
• Discuss the constitutional provisions and legal framework supporting the formation of cooperative societies, challenges faced by cooperative societies and measures that can be taken to strengthen them.
• Conclude Suitably.

Introduction

Co-operative societies are voluntary associations of people who come together to promote their common economic interests. They are based on the principles of self-help, mutual aid, and democratic control. Co-operative societies are regulated by various laws at the central and state levels in India.

Body

Constitutional Provisions:

• Article 19(1)(c) of the Constitution guarantees the right to form associations, which includes the right to form cooperative societies.
• Article 43B (added to the DPSPs in the 97th Constitutional Amendment Act of 2011) states that the state should promote the following aspects of cooperative societies: Voluntary formation, Autonomous functioning, Democratic control, Professional management.

Legal Framework:

• The Multi-State Co-operative Societies Act, 2002, and various State Co-operative Societies Acts govern the registration, functioning, and dissolution of Co-operative Societies.
• The National Cooperative Development Corporation (NCDC) Act, 1962, facilitates financial assistance and promotion of cooperative societies at the national level.

Some of the challenges faced by cooperative societies:

• Membership Issues: The cooperative struggles with low member participation, poor communication, and awareness, leading to a lack of engagement and understanding among its members.
• External Challenges: Government interference, political influence, and administrative hurdles pose obstacles to the cooperative's autonomy and decision-making, affecting its efficiency and effectiveness.
• Management and Workforce Problems: Internal issues, including weak management and a shortage of trained, dedicated workers, hinder the cooperative's ability to provide quality services and meet its goals.
• Financial Constraints: The cooperative faces difficulties in accessing affordable credit, dealing with high-security requirements, and managing interest rates, impacting its members' financial well-being.
• Market Competition and Stagnation: The cooperative encounters challenges from other sectors, struggling with a lack of diversification and innovation to meet evolving market demands and technological changes.

Some of the measures that can be taken to strengthen them:

• Establish Separate Cooperative Societies for Agriculutre: Establish new cooperatives for farm-related operations, fostering collaboration among farmers across states.
• Digital Transformation of Credit Societies: Computerise primary agricultural credit societies, expand services, and enhance transparency for efficient financial operations.
• National Cooperative Database and Policy: Create a centralized database for better policymaking and formulate a national cooperative policy for standardized development.
• Financial Support for the Poor: Implement taxation relief, subsidies, and interest-free loans to alleviate economic burdens on the poor in rural areas.
• Empowering Cooperative Federations: Transfer responsibilities from the registrar to cooperative federations, decentralizing governance and promoting local empowerment.
• Democracy and Transparency: Promote democratic values, ensure transparent governance, hold regular elections, and encourage active member participation for accountable cooperative structures.
• Comprehensive Agricultural Support: Provide a package of inputs, technical guidance, and marketing support to enhance agricultural productivity and ensure economic growth.
• Community Education: Educate members on planned parenthood, population education, family welfare, adult education, and literacy for holistic community development.

Conclusion

By implementing these measures and suggestions, the constitutional and legal framework of Co-operative Societies in India can be reinforced, fostering their sustainable development and contribution to the socio-economic progress of the country.