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SSC Foundation Offline cum Online Delhi Batch 2025 (FC-02)
04 August, 2025
Launch of National Cooperative Policy 2025
Fri 25 Jul, 2025
Context:
- Union Minister of Home and Cooperation Amit Shah launched the National Cooperative Policy 2025 on 24 July 2025 at Atal Akshay Urja Bhawan, New Delhi.
Key Points:
- Main Objective: To establish at least one professional, financially independent, and transparent cooperative organization in every village of India.
Policy Goal and Vision:
| Aspect | Description |
| Vision | "Building a Prosperous India through Cooperation" |
| Main Goal | Decisive participation of the cooperative sector in making India developed by 2047 |
| Mission | Promote tech-enabled, professional, responsive, and financially strong cooperative units |
Major Targets:
| Objective | Target |
| Contribution to GDP | Threefold increase by 2034 |
| Cooperative Members | 500 million active members |
| New Societies | 30% increase, at least 1 cooperative unit in every village |
| Employment | Career opportunities for youth in the cooperative structure |
| Model Villages | 5 model cooperative villages in every tehsil |
Focus Areas:
- Rural and agriculture-based cooperatives
- Participation of women, tribals, and Dalits
- New sectors like taxi, tourism, insurance, and green energy
- Multi-functional model of PACS (e.g. fuel, pharmacy, LPG distribution)
- Global marketing and export cooperatives
Policy Features:
| Area | Description |
| Foundation Empowerment | Enhancing internal capacity and autonomy of institutions |
| Digital Transformation | Computerization of PACS, transparent MIS system |
| Human Resource Development | Establishment of "Tribhuvan Cooperative University" |
| Monitoring System | Cluster-based monitoring and performance audit |
| Member-Centric Model | Policy focuses on – member welfare and dignity |
Institutional Structure and Reforms:
- 83 Intervention Points: Work completed on 58 of them
- Legal Reforms: Provision to update laws every 10 years
- Model By-Laws: Adopted by all states
Financial and Global Perspective:
- Scheduled cooperative banks given status equivalent to commercial banks
- Establishment of export cooperatives → Global access to Indian cooperative products
- PACS to be active in fuel, pharmacy, solar energy, seed distribution, etc.
Future Plans:
- ‘Sahkar Taxi’ Scheme (Direct benefit to drivers)
- White Revolution 2.0 → Enhancing women's participation in dairy sector
- At least 1 PACS in every panchayat
- Completion of computerization process of all societies
Social and Inclusive Development:
| Target Group | Contribution |
| Women | White Revolution, employment, PACS management |
| Youth | Career in cooperatives, startup models |
| Rural | Economic empowerment and local employment |
| Dalit/Tribal | Ensuring priority participation |
Cooperative Society:
- A cooperative society is a voluntary association where people come together to collectively fulfill their economic, social, and cultural needs, and the institution is run democratically.
Cooperative Movement in India:
- The cooperative movement in India is a socio-economic movement aimed at protecting the economic interests of weaker sections like farmers, laborers, artisans, dairy producers, etc.
- It is based on the principle of “Prosperity through Cooperation.”
Year / Period – Major Events / Phases:
| Year | Event / Phase | Description |
| 1904 | Cooperative Credit Societies Act | First cooperative law in India; legal recognition to cooperatives |
| 1912 | Cooperative Societies Act | Included marketing, handloom, artisan societies |
| 1914 | Maclagan Committee Report | Proposed three-tier cooperative banking system |
| 1919 | Govt of India Act (Montagu-Chelmsford Reforms) | Made cooperation a provincial subject; states got law-making powers |
| 1925 | Bombay Cooperative Societies Act | First provincial cooperative law |
| 1945 | Cooperative Planning Committee | Reviewed cooperatives’ role in economic planning |
| 1963 | National Cooperative Development Corporation (NCDC) | Financial assistance for cooperative development |
| 1981 | Establishment of NABARD | Support to rural development and cooperative credit system |
| 2002 | National Cooperative Policy | Framework policy for cooperative sector |
| 2021 | Formation of Ministry of Cooperation | Dedicated ministry for regulation and development of cooperatives |
Types of Cooperative Societies:
| Type | Purpose |
| Cooperative Credit Societies | Provide loans to farmers and rural people |
| Consumer Cooperative Societies | Supply goods at affordable rates |
| Dairy Cooperatives | Ensure fair prices to milk producers (e.g., Amul) |
| Agricultural Marketing Societies | Marketing of crops at fair prices |
| Industrial Cooperative Societies | Promote cottage and small industries |
Levels of Cooperative Societies:
- Primary Cooperative Societies – Function at the local level
- Central Cooperative Societies – At district/regional level
- State Cooperative Societies – At state level
- Multi-State Cooperative Societies – Operate across states
Major Organizations:
| Organization | Main Function |
| NAFED | Agricultural marketing and export |
| IFFCO | Fertilizer production |
| KRIBHCO | Fertilizer production |
| AMUL (GCMMF) | Dairy products |
| NCUI | Training and promotion |
| NCDC | Provides financial assistance |
Cooperatives in the Constitution:
- Cooperatives are recognized as an important and structurally robust institution in the Constitution.
- 97th Constitutional Amendment Act, 2011 granted constitutional status to cooperatives.
- Earlier, cooperatives were only legal entities; now they have constitutional protection.
97th Constitutional Amendment Act, 2011:
This amendment came into effect on 12 October 2011. Three major changes were made through this Act:
| Amended Part | Description |
| Part III (Fundamental Rights) | Article 19(1)(c) – Added the right to form cooperative societies as a fundamental right |
| Part IV (Directive Principles of State Policy) | Added Article 43-B – State shall promote voluntary formation, democratic control, and professional management of cooperatives |
| Part IX-B (Newly Added) | Articles 243-ZH to 243-ZT – Provisions regarding management, elections, tenure, audit, etc. of cooperative societies |
Key Features of Part IX-B (Articles 243ZH to 243ZT):
- Democratic Elections: Mandatory to conduct free and fair elections every 5 years
- Board Size: Max. 21 members allowed on the board
- Reservation: Reservation for SC/ST and women on the board
- Tenure: Max. tenure of elected board – 5 years
- Supersession: Clear conditions for suspension – generally not exceeding 6 months
- Audit: Annual audit by registered auditors is mandatory
- Strong Structure: Constitutionally backed autonomy, transparency, and accountability of societies
Cooperation – A State Subject:
- Under the State List of the Seventh Schedule of the Constitution, "Cooperation" is a state subject. Hence, state legislatures have the authority to make laws related to cooperatives.
- However, multi-state cooperative societies fall under the jurisdiction of the central government, and the Parliament can make laws regarding them.