Context:

• In a high-level meeting chaired by Union Home Minister and Minister of Cooperation, Amit Shah, on May 20, 2025, the government announced the establishment of three new multi-state cooperative societies with the aim of promoting sustainability and circularity in the dairy sector.

Key Points:

• These societies are focused on animal feed production, cow dung management, and the circular use of dead cattle remains.
• Their objective is to promote sustainability and a circular economy in the dairy sector.

Three New Multi-State Cooperative Societies:

1. Animal Feed Production Cooperative: The objective of this society is to produce high-quality animal feed to improve animal health and increase milk production.
2. Cow Dung Management Cooperative: This society will focus on the scientific management of cow dung, including the production of biogas and organic fertilizers, thereby increasing farmers' income.
3. Dead Cattle Remains Management Cooperative: The objective of this society is to promote the circular use of dead cattle remains, such as creating value-added products from bones and hides, ensuring environmental sustainability and providing additional income to farmers.

• These societies are multi-state, meaning they will operate across several states, enhancing national-level coordination and effectiveness in the dairy sector.
• Cooperative societies have played a significant role in India's milk production, such as Amul and Nandini, and these new societies will carry this tradition forward.
• Notably, the focus on cow dung management and the utilization of dead cattle remains is an innovation that will help address environmental challenges.

Objectives and Expected Impact:

• These societies are expected to increase farmers' income, reduce environmental impact, and strengthen the circular economy model.
• Special emphasis has been placed on directly transferring carbon credit benefits to farmers, which will boost their earnings.

Way Forward:

• These societies will soon be registered and begin their activities, to be implemented in collaboration with the National Cooperative Development Corporation (NCDC), NDDB, and NABARD.
• Under the "Sahakar Se Samriddhi" (Prosperity Through Cooperation) vision, there are plans to expand these models to other agricultural sectors as well.

Cooperative Societies

• A cooperative society is a voluntary organization where people work together to meet common economic, social, or cultural needs. Its objective is not to earn profit but to help its members.

Various Types of Cooperative Societies in India, operating in different sectors:

• Agricultural Cooperative Societies: Provide assistance to farmers in the supply of seeds, fertilizers, equipment, etc., and in marketing.
• Credit Cooperative Societies: Provide loans and financial services to members.
• Consumer Cooperative Societies: Make essential goods available to consumers at fair prices.
• Housing Cooperative Societies: Provide residential facilities to members.
• Producer Cooperative Societies: Assist farmers, artisans, etc., in the production and marketing of their products.
• Multi-State Cooperative Societies (MSCS): These societies operate in more than one state and are regulated by the central government.

Role of Cooperative Societies in India

• Agricultural Sector: India has approximately 1.94 lakh dairy cooperative societies and 330 sugar mill cooperative societies, which contribute significantly to the country's milk and sugar production, respectively.
• Financial Inclusion: Financial services are provided to people in rural and urban areas through cooperative banks and societies.
• Women Empowerment: Women are economically empowered through Women Self-Help Groups (SHGs).
• Employment Generation: Cooperative societies provide employment opportunities in various sectors.

Characteristics of Cooperative Societies

• Voluntary Membership: Membership is voluntary.
• Democratic Control: Based on the principle of "one member, one vote."
• Member-Centric Services: The objective is not profit, but to fulfill the needs of the members.
• Limited Liability: Members' personal assets are not liable for the society's debts.

Key Committees Shaping the Cooperative Movement in India:

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Key Articles Related to Cooperative Societies in the Constitution:

• Article 19(1)(c): This grants citizens the right to form associations, which includes cooperative societies.
• Article 43B: Directs the State to promote the voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies.
• Part IXB (Articles 243ZH to 243ZT): Provides detailed provisions related to the formation, functioning, and regulation of cooperative societies.

Key Articles within Part IXB:

• Article 243ZH: Provides definitions related to cooperative societies.
• Article 243ZI: Empowers state legislatures to make laws for the incorporation and regulation of cooperative societies.
• Article 243ZJ: Specifies the number and term of members of the board of cooperative societies.
• Article 243ZK: Prescribes the procedure for the election of board members.
• Article 243ZL: Deals with the suspension of the board and interim management.
• Article 243ZM: Relates to the auditing of accounts of cooperative societies.
• Article 243ZN: Pertains to the convening of general body meetings.
• Article 243ZO: Grants members the right to obtain information.
• Article 243ZP: Relates to the presentation of financial statements and other reports.
• Article 243ZQ: Provides for offenses and penalties.
• Article 243ZR: Specifies the application of these provisions to multi-state cooperative societies.
• Article 243ZS: Relates to the application of these provisions to Union Territories.
• Article 243ZT: Ensures the continuation of existing laws.