Prime Minister Narendra Modi has described the role of cooperative sector as important for the development of villages and farmers of the country. Last week, in the 17th Indian Cooperative Conference, cooperatives were said to be important for the social and economic transformation of the country. Being an agricultural country, the importance of cooperative sector in India was understood during the period of slavery itself. The industrial revolution that started in the 18th century broke the back of village industries in India, and agriculture became the biggest means of livelihood for the villagers, but due to various reasons, agriculture became unprofitable and farmers got trapped in the clutches of moneylenders. In such a situation, the need for an alternative system to provide cheap loans to the farmers was felt and cooperative institutions emerged. After independence, when mixed economy was adopted in the country, it included public and private sector as well as cooperative sector.
Cooperative organizations such as the Indian Cooperative Development Corporation, the National Agricultural Cooperative Marketing Federation of India (NAFED), the Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Amul have improved the lives of villages and farmers in India. At present, there are about 10 lakh cooperative societies in the country, out of which more than one lakh are financial cooperative societies, but due to reasons like mismanagement, non-accountability and corruption, many cooperative or cooperative banks were closed. In the Cooperative Conference, Lok Sabha Speaker Om Birla also said that there was a time when cooperatives used to indulge in corruption, mismanagement and politics, but now this sector is moving towards prosperity due to reforms.
These efforts include decisions like setting up a new cooperative ministry in the year 2021 to look after the cooperative sector. Concern has been expressed about the condition of agriculture in India. It is often heard that farming is no longer profitable and farmers are leaving farming. Such concerns are also strengthened by the news of farmers committing suicide. The system of cooperatives can prove to be effective so that a smooth system of farming and earning of the farmer continues and he does not get trapped in the clutches of debt. The strengthening of the cooperative sector will help in ensuring the economic security of the farmers and the food security of the country.
