Ministry of Cooperation: An Overview

“Governance is possible only with assistance. A single wheel does not move.”
– Chanakya


In a remarkable move, a different ‘Ministry of Cooperation’ has been inaugurated by the Modi Government for completing the vision of ‘Sahkar se Samriddhi’. This Ministry will give a different authoritative, lawful and strategy structure for increasing the robustness of cooperative development in the country. It will assist with developing Cooperative as an open community-based story coming up to the grassroots. In our country, a Cooperative based financial advancement model is fundamental where every part works with a feeling of authority. The Ministry will attempt to smooth out processes for ‘Simplicity of working together for Cooperative and empower improvement of Multi-State Cooperative (MSCS). The Central Government has flagged its profound obligation to community-based formative associations. The formation of a different Ministry for Cooperation additionally satisfies the financial plan declaration made by the finance minister.

Importance of Ministry

Sanjiv Babar, ex-head of Maharashtra State Federation of Cooperative Sugar Mills, said it was essential to re-establish the significance of the collaborative design in the country. He noted that additional research led by establishments like Vaikunt Mehta Institute of Cooperative Management has shown that the cooperative design has figured out how to thrive and make a meaningful difference in the states like Maharashtra and Gujarat Karnataka, and so forth. Under the new Ministry, the cooperative development would get the necessary monetary and lawful force to expand in other states.

Cooperative establishments get capital from the Center, either as value or as working capital, for which the state legislatures stand to ensure. This plan had seen a large portion of the assets going to a couple of states like Maharashtra, Gujarat, Karnataka while different forms get neglected. Throughout the long term, the communal area has seen drying out of subsidizing. Under the new Ministry, the practical design would have the option to get another lease of life.

About Cooperatives

Worldwide Labor Organization (ILO) characterizes cooperatives as an independent relationship of people joined intentionally to meet their regular monetary and social necessities and expectations through a joint and democratic venture. The year 2012 has been announced by the United Nations General Assembly as the International Year of Cooperatives. There are many sorts of cooperatives Society, however, can be comprehensively in two kinds, particularly in the agribusiness area:

  • Producer cooperatives: look to acquire the most noteworthy conceivable incentive for the labour and products provided by farmers, fisherfolk, artisans, or workers.
  • Consumer cooperatives: give inputs (manure, seed, credit, and so forth), food, lodging, wellbeing, and different administrations at the most monetary rates to their customers.

Cooperative Movement

By definition, cooperatives are associations framed at the grassroots level by members to adjust the aggregate dealing towards a shared objective. In agribusiness, cooperative dairies, sugar factories, turning plants and so on are framed with the pooled assets of farmers who wish to handle their produce. The nation has 1,94,195 cooperatives dairy societies and 330 cooperative sugar factory tasks. In 2019-20, dairy cooperatives had secured 4.80 crore litres of milk from 1.7 crore members and had sold 3.7 crore litres of milk each day. Cooperative sugar plants represent 35% of the sugar delivered in the country.

In banking and money, cooperative establishments are spread across rural and metropolitan regions. Town-level essential agrarian credit societies shaped by farmer affiliations best illustrate a grassroots-level credit system. These societies expect the credit requirement of a town and request the regional central cooperative banks. State cooperative banks sit at the pinnacle of the provincial unified loaning structure. Since town agricultural societies are a community of farmers, they have substantially more bartering powers than a single farmer arguing his case at a business bank. There are likewise cooperative promoting societies in rural regions and cooperative housing societies in metropolitan areas.

Functions of the Ministry

Capacities allotted to the Ministry of Cooperation according to the Government of India (Allocation of Business) Rules, 1961 are given beneath:

  • General Policy in the field of Cooperation and Co-appointment of Cooperation exercises in all areas.
  • Realization of vision “from cooperation to riches”.
  • It is strengthening cooperative development in the nation and extending its span up to the grassroots.
  • Promotion of cooperative based monetary improvement model, including the fundamental obligation among its members to foster the country.
  • Creation of suitable approach, lawful and institutional structure to assist cooperatives with understanding their latent capacity.
  • Matters identifying with National Cooperative Organization.
  • National Cooperative Development Corporation.
  • Incorporation, guideline and ending up of Cooperative societies with objects not bound to one State including organization of ‘the Multi-State Cooperative Societies Act, 2002 (39 of 2002)’: Provided that the authoritative Ministry or Department will be ‘the Central Government’ to practice powers under the Multi-State Cooperative Societies Act, 2002 (39 of 2002), for Cooperative units working under its influence.
  • Training faculty of Cooperative divisions and Cooperative foundations (counting training of members, office conveyors and non-authorities).

Legal Provisions Related to Cooperatives

The Constitution (97th Amendment) Act, 2011 added a new “Part IXB” just after Part IXA (Municipals) in regards to the cooperatives working in India. Article 19(1)(c), Part III of Indian Constitution: accommodates “cooperatives”, permitting every citizen to form cooperatives by giving it the status of a fundamental right. Article 43B is included in the Directive Principles of State Policy (Part IV) concerning the ” promotion of cooperative societies “.

Cooperative is a state subject under entry 32 of the State list under Schedule 7 of the Constitution. Cooperatives in a solo state are represented by laws in their separate states, with a Cooperation Commissioner and the Registrar of Societies as their administering office. The multi-State Cooperative Societies Act, 2002 was passed by the parliament to administer societies with activities in more than one State. The Central Registrar of Societies is their administrative authority; however, the State Registrar takes action from his side. The creation of the National Cooperative Development Corporation (NCDC) works to advance cooperative development in India. Its fundamental capacities include:

  • Planning, advancing and financing cooperative improvement programs at the public level.
  • It gives financial protection and specialized help to cooperative establishments of farmers and other more vulnerable segments of society.


In more accessible terms, this Ministry attempts to improve processes and guarantee Simplicity of working together for cooperatives. It will likewise help the improvement of multi-state cooperatives. By definition, a cooperative is an organization claimed and overseen by members who work in it. It can similarly be comprised of a few comparative organizations or associations cooperating to achieve monetary and social necessities. In India, cooperative development assumes a pivotal part in the horticultural, banking and lodging areas. Amul, for instance, is an Indian dairy harmonious society overseen by the Gujarat Cooperative Milk Marketing Federation Ltd and mutually possessed by around 36 million milk producers in the Western State.