Ministry of Co-operation

News: Recently, a separate ‘Ministry of Co-operation’ has been created by the Central Government for realizing the vision of ‘Sahkar se Samriddhi’ (Prosperity through Cooperation) and to give a new push to the cooperative movement. The Government has signaled its deep commitment to community based developmental partnership. It also fulfils the budget announcement made by the Finance Minister in 2021.

Ministry of Cooperation

  • In our country, a Co-operative based economic development model is very relevant where each member works with a spirit of responsibility.
  • This creation has signalled its deep commitment to community-based developmental partnerships. The Ministry of Cooperation is the second ministry to be created since 2019 after the Modi government came to power for the second time. Soon after taking charge, the government had created the Jal Shakti ministry.
  • However, it was not altogether new as the Ministry of Cooperation.
  • It was created by integrating two existing ministries dealing with water — Water Resources, River Development and Ganga Rejuvenation, and Drinking Water & Sanitation ministry.
  • The ministry has been created for realizing the vision of ‘sahkar se samriddhi’ (through cooperation to prosperity). The NGO Sahakar Bharati, whose founder member Satish Kashinath Marathe is a part-time director on the RBI board, says it was the first to pitch for the creation of a separate ministry for the cooperative sector.
  • It will provide a separate administrative, legal and policy framework for strengthening the cooperative movement in the country. It will help deepen cooperatives as a true people-based movement reaching up to the grassroots. The ministry will work to streamline processes for ‘ease of doing business’ for cooperatives and enable the development of multi-state cooperatives (MSCS).

About ‘Co-operatives’:

  • According to the International Labour Organisation (ILO), a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
  • There are many types of cooperatives such as Consumer Cooperative Society, Producer Cooperative Society, Credit Cooperative Society, Housing Cooperative Society and Marketing Cooperative Society.
  • The United Nations General Assembly had declared the year 2012 as the International Year of Cooperatives.
  • India is an agricultural country and laid the foundation of World’s biggest cooperative movement in the world. In India, a Co-operative based economic development model is very relevant where each member works with a spirit of responsibility.
  • The Constitution (97thAmendment) Act, 2011 added a new Part IXB right after Part IXA (Municipals) regarding the cooperatives working in India.
  • The word “cooperatives” was added after “unions and associations” in Article 19(1)(c) under Part III of the Constitution. This enables all the citizens to form cooperatives by giving it the status of fundamental right of citizens. A new Article 43B was added in the Directive Principles of State Policy (Part IV) regarding the “promotion of cooperative societies”.