Centre does not intend to interfere in state cooperatives; will seek consent for uniformity in state laws: Shah

PTI, Apr 12, 2022, 7:26 PM IST

Asserting that reforms are required to strengthen cooperatives in the country, Cooperation Minister Amit Shah on Tuesday said the Centre does not intend to interfere in the functioning of state cooperatives but will endeavour to bring uniformity in state laws through dialogue and coordination.

He also emphasised on the need to develop cooperatives in a uniform manner in order to take the cooperative sector to the next level and ensure its contribution towards doubling farmers’ income and making India a USD 5 trillion economy.

The successful cooperative models like IFFCO and Amul need to be emulated by adopting corporate principles with cooperative perspective, professionalism, modernisation and transparency in governance, he said.

The new cooperation policy will be ready in the next 8-9 months, the minister said.

Addressing the two-day national conference on new cooperative policy, Shah said, ”we have a strong base (of cooperatives in the country). However, we need to frame a new policy to remove hurdles and provide a platform to grow further”.

Among the key reforms required for strengthening cooperatives, the minister stressed on having better coordination between cooperatives and bringing uniformity in state laws.

Shah also asserted that the Centre will not intervene in state cooperatives but will push for bringing uniformity in state laws through a consultation process.

”State assemblies have exclusive right over state cooperatives and no one wants to interfere in that. But through dialogue, we want to bring uniformity in state laws with their acceptance otherwise cooperatives will not survive for long,” he said.

The minister pointed out that cooperative laws in four states — Uttar Pradesh, Sikkim, Gujarat and Odisha — that he has analysed are primitive and are not relevant now.

”We need to bring change but through dialogue and agreement with states. The process is long but necessary. We cannot impose and get it done,” he noted.

The minister also pointed out that there is lack of coordination between cooperatives at village level in some parts of the country and there is no facility to help each other, adding that the gap needs to be addressed.

Regarding National Cooperative Development Corporation (NCDC) Managing Director Sandeep Kumar Nayak’s suggestion on having a separate legislation for cooperatives, Shah said, ”it is his personal views, the Government of India does not agree with it.” Nayak made the suggestion during his speech at the event.

Shah also made it clear that the provisions under the Constitution do not pose any obstacle for the growth of the cooperatives.

The provisions clearly define the role of state and Centre as far as regulating cooperatives are concerned. ”Multi-state cooperatives are regulated by the Centre, while state cooperatives are regulated by the state. There is no need to make any changes,” he said.

However, Shah suggested having uniformity in the state laws governing cooperatives.

”Can’t we bring uniformity in state laws through dialogue? If we accept the cooperative principle, then through dialogue we need to bring uniformity in state laws. Then only we will be able to strengthen all cooperatives uniformly,” he said.

He said the Centre will initiate the dialogue and coordinate and prepare a common proposal. The draft proposal can be placed before state assemblies for amendments in state laws. ”I believe this is possible.” The minister also said those who wish to send suggestions should not tinker with the basic principles of the Constitution on cooperatives.

The Ninety-Seventh Amendment Act of 2011 gave constitutional status and protection to cooperative societies sufficient to meet the challenges of cooperatives, he added.

Further, Shah mentioned that there was a suggestion to balance cooperatives, public and private sector in different five-year plans but unfortunately no work was done. The work commenced only after a new ministry was formed in July 2021.

The new cooperation policy will create opportunities for cooperatives to grow further, he said, adding that this can happen with TEAM (Transparency, Empowerment, Aatma Nirbhar (self-reliant) and Modernisation).

The Minister of State for Cooperation B L Verma, Secretary D K Singh, NCDC Managing Director and other senior officials were present at the event.

The two-day conference will have discussions between the central and state governments’ representatives on suggestions received from 56 stakeholders on the proposed cooperation policy.

Present legal framework of cooperatives, identification of regulatory policies, operational barriers, reforms for strengthening governance, making cooperatives vibrant economic entities, training and education promoting new cooperatives will be among the topics that will be discussed at the conference.