Sahakar Se Samridhi: India's Cooperative

Movement and Its Global Impact

INTERVIEW

India's cooperative movement, with roots dating back to the 19th century, has been pivotal in shaping the country's socio-economic landscape, particularly in sectors like agriculture, dairy, credit, and housing. Cooperatives have empowered marginalised communities, driving financial inclusion and sustainable development. Iconic successes like Amul demonstrate the power of collective action in addressing poverty and unemployment. Supported by evolving policies and government initiatives, the cooperative sector continues to promote rural self-reliance.

The ongoing International Cooperative Alliance (ICA) General Assembly and Global Conference, being held in New Delhi from November 25-30, 2024, brings together global leaders, senior officials, and cooperative sector figures. This landmark event is marking the start of 2025 as the International Year of Co-operation, with discussions focused on strengthening cooperatives worldwide. The conference is an opportunity for India's farmers and cooperative societies to build new connections, showcase innovations, and exchange success stories, aligning with Prime Minister Shri Narendra Modi's vision of "Prosperity through Cooperation."

In this interview, Dr. Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, Government of India, discusses the role of cooperatives in India's development, the challenges faced by the sector, and the future roadmap for empowering communities. Conducted by Senior Journalist Shri Chandan Chaudhary for Employment News, this conversation sheds light on the transformative potential of India's cooperative sector and its global impact.

Q: The theme of this year's Global Cooperative Conference is 'Co-operation: The Door to Prosperity for All.' What is the significance of this theme, and how is India contributing to the global cooperative movement as a founding member of the International Cooperative Alliance (ICA)?

A: The theme, 'Cooperation: The Door to Prosperity for All,' underscores the cooperative movement's potential to foster inclusive and sustainable development, particularly in rural areas. It emphasises how cooperative models can drive poverty eradication, increase income for farmers, and create pathways for economic empowerment, especially for marginalised communities. The theme highlights the role of cooperatives in promoting self-reliance, improving livelihoods, and empowering food producers. The conference will focus on how cooperatives can continue to evolve through reforms, strengthening their capacity to bring prosperity to all by enhancing entrepreneurship and fostering social equity.

As a founding member of the International Cooperative Alliance (ICA), India plays a crutial role in advancing the global cooperative movement. Indian cooperatives have been at the forefront of rural development and agriculture, serving as a model for other countries. The country's diverse and growing cooperative societies have become a key driver of economic development, strengthening the rural economy and improving the lives of millions. India's latest contributions to the cooperative movement include initiatives such as the computerisation of Primary Agricultural Credit Societies (PACS), the development of model bye-laws, and the establishment of new cooperative societies like NCOL, NCEL, and BBSSL. These efforts not only enhance India's own economic position but also promote cooperative values globally.

The ongoing ICA General Assembly and Global Conference serves as an important platform for fostering the exchange of ideas and best practices across countries. The event brings together cooperative leaders, policy-makers, and experts from over 100 countries, providing an opportunity for participants to share success stories, discuss innovative approaches, and collaborate on solutions to common challenges. Through this exchange, the conference aims to deepen global understanding of the cooperative model, foster international cooperation, and explore new ways to strengthen the cooperative movement. By showcasing India's successful cooperative initiatives and learning from global counter-parts, the event will help shape the future of cooperatives, promoting shared prosperity and growth worldwide.

Q: How is the Government of India advancing its vision of 'Sahakar Se Samridhi' (Prosperity through Cooperation), and what measures have been implemented to strengthen the cooperative movement, generate employment, and empower rural commu-nities?

A: The Government of India is advancing the vision of 'Sahakar Se Samridhi' (Prosperity through Cooperation) by focusing on modernising the cooperative sector and empowering rural communities. Key initiatives taken to strengthen cooperatives, generate employment, and promote self-reliance are:

Establishment of the Ministry of Cooperation: In July 2021, the Government of India established the Ministry of Cooperation to oversee the growth and development of the cooperative sector. This Ministry is responsible for modernising cooperative laws, systems, and practices to facilitate economic growth and ensure effective governance. It has launched over 54 initiatives aimed at strengthening cooperatives and promoting cooperative-led prosperity.

Creation of Cooperatives at the Panchayat Level: One of the most significant steps is the creation of cooperatives in every Panchayat across India. This initiative empowers local communities by providing access to resources like credit, fair pricing, and technical support, especially for farmers and small entrepreneurs. It strengthens the cooperative movement at the grassroots level and promotes rural economic development. The government is also prioritising the establishment of women-specific cooperatives, ensuring gender equality and fostering women's leadership.

Digitisation of Primary Agricultural Credit Societies (PACS): The digitisation of PACS is a key initiative to improve efficiency, transparency, and governance in cooperatives. By January 2025, this process will be completed, enabling PACS to offer services such as faster loans, better record-keeping, and improved financial transparency. This digital transformation is expected to boost local cooperatives, reducing transaction costs and making them more accessible to rural communities.

Revitalisation of Cooperative Sugar Mills: The government has introduced measures to revitalise cooperative sugar mills, which are crucial for rural employment and India's biofuel capacity. These measures include providing income tax relief, offering a Rs. 10,000 crore loan scheme via the National Cooperative Development Corporation (NCDC), and preferential treatment for ethanol procurement. These actions aim to make cooperative sugar mills more sustainable, reduce financial distress, and enhance operational efficiency.

Diversification of Activities in PACS: Under the Ministry's guidance, PACS have expanded beyond traditional credit services into over 25 diverse activities. These include operating Common Service Centres (CSCs), PM Kisan Samriddhi Kendras, Jan Aushadhi Kendras, and even petrol/diesel pumps. These diversified activities generate employment opportunities at the grassroots level, particularly for rural youth, while enhancing local economic opportunities.

Skill Development and Entrepreneurship Initiatives: To equip rural youth with the necessary skills, the Ministry has launched various training programmes. Around 600,000 individuals are trained annually, and the government plans to train 14.5 crore people over the next five years. Additionally, government support for Farmer Producer Organisations (FPOs) and Fish Farmer Producer Organisations helps cooperative members secure better prices for their products and enhances market access, further encouraging entrepreneurship in agriculture and fisheries.

Promotion of Women's Empowerment in Cooperatives: Special emphasis is placed on creating women-specific cooperatives to empower rural women. These cooperatives ensure greater female participation in leadership roles, fostering economic independence. By strengthening women's roles in decision-making, the government is promoting gender equality and supporting community development.

Encouraging Cooperatives to Participate in the Digital Economy: The government encourages cooperatives to register as 'buyers' on the Government e-Marketplace (GeM) portal. This move integrates cooperatives into the digital economy, facilitating easier access to national procurement and expanding market linkages. This strategy aligns cooperatives with modern, technology-driven business practices, enhancing their competitiveness and sustainability.

Strengthening the Cooperative Framework: To ensure self-reliance and long-term growth of the cooperative sector, the government has introduced a new National Cooperative Policy, which is focused on removing barriers to growth and promoting cooperative entrepreneurship. The government has also created over 7,500 new cooperatives in rural areas, ensuring broader access to cooperative benefits and fostering a more robust framework for local economic development.

Global Leadership in the Cooperative Sector: As a founding member of the International Cooperative Alliance (ICA), India plays an active role in shaping the global cooperative movement. By participating in global forums such as the ICA General Assembly and Global Conference, India shares its cooperative models and learns from international best practices, which enriches domestic efforts and enhances the cooperative sector's growth and global influence.

These combined efforts are designed to strengthen cooperatives, create employment oppor-tunities, and foster self-reliance in rural communities. By empowering local populations, particularly women and youth, and driving economic activity through cooperatives, the government is creating a sustainable model for rural development and prosperity. Through these initiatives, India is taking significant steps towards achieving the vision of 'Sahakar Se Samridhi' and ensuring long-term economic stability in rural areas.

Q: The United Nations General Assembly has declared 2025 as the Inter-national Year of Cooperation. How significant is it for advancing the cooperative movement in India?

A: The Ministry of Cooperation sees the United Nations' declaration of 2025 as the International Year of Cooperation as a pivotal moment for promoting the values and principles of cooperation on a global scale. Cooperation plays a crucial role in fostering economic development that benefits all sections of society, especially in rural and under-served communities. This declaration offers a unique international platform to emphasise the importance of cooperative models in addressing global challenges, including poverty reduction, sustainable development, and inclusive economic growth.

For India, this year represents an opportunity to further strengthen the cooperative sector, which has long been a backbone of rural development and community empowerment. The Ministry views the International Year of Cooperation as a chance to showcase the effectiveness of cooperatives in creating local employment, improving livelihoods, and enhancing social cohesion. Through various programmes, seminars, and conferences at the state, district, and grassroots levels, the Ministry plans to engage key stakeholders, including youth, farmers, and cooperative members, in discussions and activities that highlight the impact of cooperation on community welfare.

In addition to raising awareness about the benefits of cooperative models, the Ministry aims to coordinate efforts to refine policies and introduce new initiatives that can further empower local communities. This global celebration of cooperation will not only inspire collaboration between nations but also provide a significant boost to India's ongoing efforts to enhance economic opportunities through cooperative principles, leading to greater rural prosperity and empowerment.

(The interviewer is Assistant Consulting Editor at New India Samachar.)

Views expressed are personal.