The Union Home and Cooperative Minister addressed the ‘Sahkar se Samriddhi’ program organized on the occasion of 102nd International Cooperative Day in Gujarat. International Cooperative Day is celebrated every year on 6th July. The theme for the year 2024 is “Cooperatives Building a Better Future for All”. This theme aligns well with the objectives of the upcoming United Nations Summit of the Future, which has the theme “Multilateral Solutions for a Better Tomorrow”. According to the United Nations Secretary-General’s report on Cooperatives in Social Development for the year 2023, cooperatives have always worked to promote the economic and social development of all individuals, including marginalized groups. This day will pave the way for the International Year of Cooperatives in the year 2025.
How cooperatives developed in India
- Cooperatives are people-centric enterprises owned, controlled and operated by their members to achieve their shared economic, social and cultural needs and aspirations. • India’s cooperative network is one of the largest in the world with over 800,000 cooperative societies in various sectors such as agriculture, credit, dairy, housing and fisheries.
- The cooperative sector contributes 20% of agricultural credit disbursement, 35% of fertilizers disbursement, 31% of sugar production, 13% of wheat procurement and 20% of paddy procurement.
Cooperative Societies in Pre-Independence Era
- First Cooperative Act in India: The first Cooperative Credit Societies Act was passed in 1904 by the Indian Famine Commission (1901), followed by the (amended) Cooperative Societies Act, 1912.
- Maclagan Committee: In the year 1915, a committee headed by Sir Edward Maclagan was appointed to study and report whether the cooperative movement was moving in an economically and financially sound direction or not.
- Montagu-Chelmsford Reforms: Through the Montagu-Chelmsford Reforms of 1919, cooperation became a provincial subject which gave further impetus to the movement.
- After the economic depression, 1929: Various committees were appointed in Madras, Bombay, Travancore, Mysore, Gwalior and Punjab to examine the possibilities of reorganizing cooperative societies.
- Gandhian Socialist Philosophy: According to Gandhiji, cooperation was necessary for building a socialist society and complete decentralization of power.
- According to him, cooperation is an important medium to empower people.
- Mahatma Gandhi established ‘Phoenix Settlement’ in South Africa as a cooperative institution in a socialist pattern. • He established Tolstoy Farm during this period as a rehabilitation cooperative settlement for families affected by the South African freedom struggle.
Cooperatives in Post-Independence India
- First Five-Year Plan (1951-56): Co-operatives were promoted for comprehensive community development.
- Multi-State Co-operative Societies Act, 2002: Provides for the formation and functioning of multi-state co-operative societies.
- The Multi-State Co-operative Societies (Amendment) Act, 2022 introduced the Co-operative Election Authority to oversee board elections in multi-state co-operative societies.
- 97th Constitutional Amendment Act 2011: Established the right to form co-operative societies as a fundamental right (Article 19).
- A new Directive Principle of State Policy on Co-operative Societies was introduced (Article 43-B).
- A new Part IX-B titled “Cooperative Societies” was added to the Constitution (Articles 243-ZH to 243-ZT).
- Parliament was empowered to make laws governing multi-state cooperative societies (MSCS) and state legislatures were given power to govern other cooperative societies.
- Union Ministry of Cooperation established (2021): took over the responsibility of cooperative affairs, which was earlier looked after by the Ministry of Agriculture.