Government support plays an important role in the development and management of cooperative societies in India. Cooperative organizations help farmers, artisans, small traders, and workers work together and achieve common goals. Many government policies and programs have been created to support these cooperatives. These policies ensure that cooperative organizations grow stronger and serve their members well. This article provides a detailed overview of key government policies and initiatives that have shaped cooperative management in India.
Table of Contents
Key Government Policies and Acts
The Cooperative Societies Act, 1912 First legal recognition for cooperative societies in India. Provided guidelines for registration and functioning of cooperatives. Formed the foundation for future cooperative legislation.
Multi-State Cooperative Societies Act, 2002 Allowed cooperatives to operate in more than one state. Ensured better governance, transparency, and professionalism. Established the Central Registrar for multi-state cooperatives.
97th Constitutional Amendment Act, 2011 Gave constitutional status to cooperatives. Inserted Article 43B to promote voluntary formation and autonomous functioning. Made the right to form cooperative societies a fundamental right under Article 19(1)(c).
National Policy on Cooperatives, 2002 Aimed to strengthen cooperatives in various sectors like agriculture, dairy, and credit. Promoted democratic, voluntary, and participatory principles. Encouraged self-reliance and economic development through cooperatives.
Government Institutions Supporting Cooperative Management
Institution
Purpose and Functions
National Cooperative Development Corporation (NCDC)
Provides financial assistance and guidance to cooperatives in agriculture, dairy, and rural industries.
National Bank for Agriculture and Rural Development (NABARD)
Offers credit and developmental support for rural cooperatives.
National Cooperative Union of India (NCUI)
Promotes education, training, and research in the cooperative sector.
Ministry of Cooperation (2021)
Created to streamline and strengthen cooperative activities across the country.
Financial Support and Subsidy Schemes
NCDC Assistance Programs Offer loans and grants for setting up cooperative industries. Focus on food processing, agriculture, dairy, fisheries, and warehousing.
Interest Subvention Schemes Reduce the cost of loans for cooperative banks and societies. Encourage prompt repayment and credit discipline.
Subsidies for Cooperative Sugar Mills and Textile Units Provide financial relief to cooperative-run industries. Help modernize technology and increase production efficiency.
Rural Infrastructure Development Fund (RIDF) via NABARD Supports cooperative institutions in building storage, irrigation, and rural infrastructure.
Training and Education Support
Program/Institute
Purpose
Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM)
Trains professionals in cooperative management and leadership.
State Cooperative Training Centers
Offer short-term and long-term courses for cooperative society members.
National Council for Cooperative Training (NCCT)
Designs and implements training programs for cooperative institutions.
Skill Development Schemes
Provide youth with skills required for cooperative sector employment.
Technology and Digitalization Initiatives
The e-Governance in Cooperatives Encourages the use of digital platforms for management, auditing, and transparency. Makes record-keeping and decision-making easier and more accessible.
Cooperative Data Repository Maintains a central database of cooperative societies. Helps monitor performance and policy implementation.
Online Registration Portals Simplify the registration and renewal process for cooperative societies. Reduce dependency on manual procedures.
Digital Payment and MIS Tools Support smooth transactions and better tracking of funds within cooperatives. Enhance transparency and efficiency.
Special Focus Areas in Policy Framework
Area
Government Initiatives
Women in Cooperatives
Promotion of women-led cooperatives through special training, finance, and legal support.
Agricultural Cooperatives
Assistance in farm inputs, marketing, warehousing, and value addition.
Credit Cooperatives
Strengthening cooperative banks and PACS (Primary Agricultural Credit Societies).
Consumer Cooperatives
Support for setting up retail stores and distribution networks.
Housing Cooperatives
Policies to ease land acquisition and access to housing loans for cooperative societies.
Recent Government Measures (Post-2020)
Formation of the Ministry of Cooperation (2021) Focuses exclusively on policy-making for cooperative development. Aims to create a single-window system for clearances and approvals.
Sahakar Mitra Scheme Offers internships to youth in the cooperative sector. Encourages young professionals to understand cooperative business models.
Computerization of PACS Modernizes over 63,000 PACS across India through digital systems. Improves transparency, efficiency, and data-driven decisions.
Support for Dairy Cooperatives under PM-DAIRY Scheme Assists with modernization, chilling units, and marketing strategies.
Challenges Addressed by Policies
Challenge
Policy Response
Lack of Professional Management
Training programs and professional education in cooperative institutes.
Financial Constraints
Subsidies, grants, and concessional loans from NCDC and NABARD.
Limited Technology Adoption
The e-Governance projects and digital infrastructure investments.
Low Participation of Women and Youth
Special programs for women and internship schemes for youth involvement.
Inefficient Governance Structures
Constitutional amendments and promotion of democratic functioning.
Last Words
Government policies in India have strongly supported the growth and management of cooperative societies. Cooperative societies have contributed to the socio-economic development of India. All this happens just because of the support the Indian Government provides through its policies. In the future, also, the support from the government and the mutual efforts of the Cooperative societies will bring a change in the indian economy.
She is a creative and dedicated content writer who loves turning ideas into clear and engaging stories. She writes blog posts and articles that connect with readers. She ensures every piece of content is well-structured and easy to understand. Her writing helps our brand share useful information and build strong relationships with our audience.
