NEW DELHI: The much-awaited National Cooperation Policy is likely to be announced next month.
Sources in the government told this newspaper that consultations including the one with the home ministry have been concluded, and the policy might be announced on July 1, 2023, which is International Day of Cooperatives.
As per government sources, the National Cooperation Policy is said to have proposed a ranking framework for states for the development of cooperatives and the setting up of the National Board for Cooperatives along the lines of the National Board for MSMEs. The policy could also envisage a National Cooperative Tribunal along the lines of National Company Law Tribunal (NCLT) to resolve disputes and reconstruct sick cooperatives.
It has proposed the setting up of the National Cooperative Bank of India to deploy funds to Primary Agricultural Credit Societies (PACS), which are village-level cooperative credit societies dealing directly with farmers.
Home Minister Amit Shah, also the minister of cooperation, in September 2022 announced the setting up of the national-level panel for drafting of the national cooperation policy document.
According to a government official, sustainable socio-economic development, and eventual poverty and inequality elimination could be achieved by deploying cooperative style in undertaking economic activities, and the committee tasked with National Cooperation Policy has considered the same in drafting the fine print of the policy. The policy is said to have proposed establishing Centres of Excellence in all the districts while at the same time improving professionalism in the Board of Directors and Management through training and other methods. “The aim of the policy is to achieve some level of ‘corporatisation’ to make them commercially more viable over the long run,” said the government official quoted earlier.
India has around 8.5 lakh co-operative societies with a member base of around 29 crore, spread across the country. These co-operatives are engaged in varied activities like agro-processing, dairying, fisheries, housing, weaving, credit, and marketing, to name a few. The new National Cooperation Policy will replace the existing National Policy on Cooperatives, which was formulated in 2002.
The proposed policy
National Cooperation Policy to replace National Policy on Cooperatives of 2002
The policy proposes National Cooperative Tribunal along the lines of NCLT
It envisages setting up National Board for Cooperatives along the lines of National Board for MSMEs
It proposes National Cooperative Bank of India to deploy funds to Primary Agricultural Credit Societies
The policy also proposes a ranking framework for states for development of co-operatives