Campaign to Open a Warehouse in Every Block Sarv Sahakar, Sarv Sakaar SAHAKAR JAGRAN Year: 01 Issue: 04 July 2023 World’s Largest Grain Storage Plan in the Cooperative Sector The food storage facility will be better NATIONAL COOPERATIVE UNION OF INDIA
Contents Sarv Sahkar, Sarv Sakaar 05 SAHAKAR Govt spending ₹6.5 Lakh Crore JAGRAN annually on Farmers: PM Modi July 2023, Issue: 04, Year: 01 Addressing the 17th Indian Cooperative Congress on the occasion of International Day of Cooperatives Editorial Board recently, Prime Minister Shri Narendra Modi said that Chief Editor his administration spends over ₹6.5 lakh crore annually on the agricultural sector and farmers. Dr. Sudhir Mahajan 08 Editor Cooperative Societies get Sanjay Kumar Verma Equal Status as Corporate Companies Editorial Associate During his address at the 17th Indian Cooperative Congress Anuradha on the International Day of Cooperatives, Shri Amit Shah, the Union Minister for Home and Cooperation, announced If you have any suggestions, feed- that a bill aimed at amending the law on Multi State... back, or articles related to Sahakar Jagran, please email us at: [email protected] [email protected] Director, Publication/PR NCUI NCUI Campus, 3, August Kranti Marg, Siri Institutional Area, Hauz Khas, New Delhi: 110016 You may also contact NCUI World’s Largest Grain Storage Plan in the Cooperative Sector 10 SCO will move Ahead with the Mantra of ‘Vasudhaiva Kutumbakam’: PM Modi 16 Zero Tolerance Policy against Narcotics 18 75 Villages Transformed through Sahakar Ganga Grams 19 Cooperatives’ expansion leading to Rural Economic Development 20 NCUI Collaborates with HCL Foundation to Empower Marginalised Communities 21 NCCE Introduces Course on Cooperative Laws and Practices 22 Building Financial Resilience: How Cooperatives secure Funding for Growth 24 26 Sahakar Jagran is owned & published by Model Cooperative Village Programme: Spurs Economic Opportunities... National Cooperative Union of India. No person, organization or party can copy, re-produce or 29 re-distribute the content of this magazine or any part of this publication without a written Slew of Tax Reforms to consent from the editor’s panel & the author/s strengthen Cooperative of the content, as applicable. The content/data Movement available in the reports and related are from secondary & primary sources (industry experts, veterans, Government of India, Ministry of Cooperation etc.). However, with respect to available data sources, neither the organization nor its employees make any warranty, expressed or implied, for any error in the report, and takes no legal liability against the same. 2 Sahakar Jagran t July 2023
Editorial Strengthening the Cooperative Movement I naugurating the 17th Indian Cooperative Congress, organized by National Cooperative Union of India (NCUI), Shri Narendra Modi, Hon’ble Prime Minister of India said that ‘Sarkar’ and ‘Sahakar’ (Government and Cooperatives) will together provide double strength to fulfill the dream of India becoming an ‘Atmanirbhar’ developed country. A look at the growth of the cooperative movement in the past clearly indicates that the cooperative movement did not develop with the same momentum as has been witnessed in the last two years. This was primarily because cooperatives were not the focal point of attention as there was no separate Ministry of Cooperation. The subject of cooperatives was dealt by a separate department in the Ministry of Agriculture. Due to this, a true collaborative government–cooperative relationship could not emerge, which could take the cooperative movement to new heights. However, in the recent two years, since the formation of the Cooperation Ministry, the cooperative movement has been strengthened due to several path-breaking initiatives of the new Ministry. The 45 new initiatives of the Ministry of Cooperation are wide-ranging and cover all aspects of cooperative development. They are in accordance with our Hon’ble Prime Minister’s vision of ‘Sahakar Se Samriddhi’ and building up an Atmanirbhar Bharat. Whether it is economic strengthening of PACS; strengthening of PACS through computerization; establishment of multipurpose PACS/dairy/fisheries cooperative societies in every panchayat/village; functioning of the world’s largest decentralized grain storage program in the cooperative sector, there is no field left, where cooperatives can’t transform themselves to become viable business entities. In all these initiatives, the contribution of cooperative organizations and their active partnership with the government is very important. This partnership can definitely lead to India attaining the status of a developed nation in which the cooperatives will have a leading role to play as compared to public and private sector. NCUI, being an apex organization of the cooperative movement, is actively contributing in various initiatives of the government. Active collaboration with the Ministry in strengthening of National Cooperative Database is an example worth mentioning here. During the inaugural function of 17th Indian Cooperative Congress, Hon’ble Prime Minister of India also said that it is important that the cooperative sector becomes a model of transparency and corruption-free governance. To become such a model is a big challenge for the cooperative sector. For this, the cooperatives must follow their principles and values. The cooperatives, who adopt these principles in their functioning, succeed to become a good model of governance. The example of AMUL is well known to all. The government’s recent big initiative towards digitalization of PACS will also definitely ensure transparency and corruption-free governance. n Jai Sahakar July 2023 t Sahakar Jagran 3
E-Watch The role of the cooperative sector is going to be huge in order to increase the potential of the country’s villages and farmers in Amritkaal. Shri Narendra Modi Prime Minister of India During the last 30 years, there was stagnation in the cooperative sector. The cooperative movement has become stronger under the guidance of Modi Ji. Shri Amit Shah, Union Minister for Home and Cooperation The 17th In order to The Ministry Indian fulfil PM Shri of Cooperation Cooperative @narendramodi completed 2 years Congress, ji’s resolution of its formation. organized of service, good by NCUI in governance, the Ministry of New Delhi in welfare of the poor and Cooperation was the presence of ‘Antyodaya’, let’s make the formed on 6th July Honorable Prime cooperative movement a mass 2021 to realize the Minister Shri Narendra vision of Hon’ble Bhai Modiji assured the Prime Minister that movement the cooperative sector will work on a war Prime Minister footing to realize the resolution of “Sahakar Shri BL Verma, Shri Narendra Minister of State, Cooperation Modi’s “Sahakar Se Se Samriddhi”. Samriddhi”. Shri Dileep Sanghani, President, NCUI & IFFCO Ministry of Cooperation 4 Sahakar Jagran t July 2023 Government of India
Cooperative Congress Govt spending 6.5 Lakh Crore annually on Farmers: PM Modi ª Cooperatives are a big strength for small farmers: Prime Minister. ª 60% participation of women in the cooperative dairy sector. Sahakar Jagran Team A ddressing the 17th Indian Cooperative Congress on the occasion of International Day of Cooperatives of the world’s top sugar producers and cooperative sector. Cooperative the dairy cooperative’s contributions to banks have also been reinforced, and recently, Prime Minister Shri Narendra making India the world’s leading milk simplified norms have been put in place producer. to enable them to open new branches Modi said that his administration and offer door-to-door banking Shri Modi added that the services,” he said. spends over ₹6.5 lakh crore annually contribution of women to the dairy industry is almost 60%. He emphasized Shri Modi remembered that before on the agricultural sector and farmers. that cooperatives have grown into a 2014, farmers used to express their significant support structure for small dissatisfaction with the government’s He emphasized that the government farmers in many regions of the nation. inadequate support. Additionally, they complained that any assistance they did doesn’t just make promises but also “So, to pursue the massive goals for receive often ended up in the hands of a ‘Viksit Bharat’, we decided to give a middlemen. Now, the conditions have fulfils them. He urged the cooperatives big push to cooperatives,” the PM said. changed. Crores of farmers are getting “PM Kisan Samman Nidhi”. And now to become carriers of social and He mentioned that the cooperative there is neither any middleman nor any sector now has access to the same bogus beneficiary. In the last four years, national policy, to become a model facilities and platforms as the corporate he pointed out, ₹2.5 lakh crore have sector. In order to strengthen been sent directly to the farmers’ bank of transparency and corruption-free cooperative societies, tax rates have accounts under the scheme. also been reduced. governance, and to adopt digital tools Noting that fertilizers are becoming “Efforts are being made to resolve in a big way. long-standing issues concerning the Shri Modi said that India is working towards the goal of a “Viksit” and “Atmanirbhar Bharat”. He reiterated the need for “Sabka Prayas”, where the spirit of cooperation communicates the message of everyone’s effort in order to achieve these goals. He cited cooperatives’ roles in making India one July 2023 t Sahakar Jagran 5
Cooperative Congress costlier globally, Shri Modi assured Emphasize transparencythrough technology that his government did not allow the burden of this inflation to fall on the “The most important primary-level cooperative society, PACS, will now farmers. In his comparison, he noted become a model of transparency and modernity. I am told that the that a bag of urea costs less than ₹270 computerization of more than 60,000 PACS has been done so far and I in India, while the same bag costs ₹720 congratulate you on this. But it is very necessary that the cooperatives should in Bangladesh, ₹800 in Pakistan and also improve their work by encouraging the use of technology,” the Prime a whopping ₹2,100 in China. On the Minister said. other hand, in a developed country like America, the cost of the same Role of the cooperative sectorin exports amount of urea is more than ₹3,000. In nine years, the BJP government has India’s exports are continuously creating new records. ‘Make in India’ is also given fertilizer subsidies of ₹10 lakh being discussed worldwide today. In such a situation, it is the effort of the crore. In order to ensure a fair price government that cooperatives should also increase their contribution in this for the farmers’ produce in the last field. With this objective, today, we are especially encouraging cooperative nine years, the PM said that more societies related to manufacturing. The tax for them has also been reduced a than ₹15 lakh crore have been given lot now. The cooperative sector is also playing a big role in increasing exports. to farmers by procuring their produce “Our cooperatives are doing a wonderful job in the dairy sector. Milk powder, on the Minimum Support Price (MSP). butter and ghee are being exported in large quantities today,” Shri Modi Every year the Central government pointed out. spends more than ₹6.5 lakh crore on agriculture and farmers. This means Sugarcane cooperatives every year, ₹50,000 is provided to each farmer in some form or other. According to the Prime Minister, willpower can overcome even the biggest challenge. Farmers used to face the issue of receiving low prices for sugarcane Emphasizing his point, Shri Modi and having their payments delayed for several years. Regardless of whether said, “This is Modi’s guarantee. And I sugarcane production increased or decreased, farmers were constantly am talking about what I have already facing difficulties, which resulted in their losing faith in cooperatives. A done; these are not promises.” solution was necessary to address this problem. As a result, a package worth ₹20,000 crore was provided to sugar mills to clear the old payments of Recently, in an effort to support sugarcane farmers, providing a permanent solution to this issue. farmers, the Modi government Shri Modi said, “We focussed on making ethanol from sugarcane and announced a significant decision. They blending ethanol with petrol. Over the past nine years, sugar mills have sold have allocated a package of ₹3,70,000 ethanol worth ₹70,000 crore, which has allowed them to pay their sugarcane crore for farmers. Additionally, farmers on time. Earlier, our government abolished the tax which used to be sugarcane farmers can expect a fair and imposed on paying a higher price for sugarcane. The decade-old problems profitable price of ₹315 per quintal, related to tax have also been resolved. Special assistance of ₹10,000 crore has which is a new record high. also been given to cooperative sugar mills to settle old dues. All these efforts are bringing lasting changes in the sugarcane sector.” “This will directly benefit more than five crore sugarcane farmers and Cooperation with the government is every beneficiary. Even the poorest of lakhs of sugar mill workers. In order to necessary for a developed and self- the poor in the country believe that increase the potential of the country’s corruption and nepotism at the higher villages and farmers in the ‘Amrit reliant India: level have ended. Kaal’, now the role of the country’s The PM said that the government cooperative sector is going to be huge,” and the cooperative together will Now that cooperatives are being he said. give double strength to the resolve promoted so much, it is necessary that of a developed and self-reliant India. the common man, our farmer and our The government has increased cattle rearers should also experience transparency through ‘Digital India’, these things in everyday life. The whose direct benefits are reaching cooperative sector should become a 6 Sahakar Jagran t July 2023
Cooperative Congress NCUI Haat provides a platform for the exhibition and sale of products Important Decisions made by NCUI and lesser-known cooperatives. Thus, NCUI Haat is playing an important role in realizing the vision of “Sahakar Se Samriddhi”. 8 “Wehavedecidedtogivegreater PM PRANAM strength to cooperatives to fulfil the larger goals of ‘Viksit Bharat’.” In relation to chemical-free farming, the Prime Minister mentioned the recent “PM-PRANAM” plan, which aims to spread chemical-free farming and 8 C ooperativesaregettingthesame encourage the use of alternative fertilizers. He emphasized that cooperatives will be necessary to help with this as well. He requested the cooperatives to facilities as the corporate sector. adopt five villages in each district to ensure that agriculture is chemical-free. He also highlighted the “GOBARdhan” scheme, which aims to turn ‘waste into 8 N omiddlemenandfake wealth’. He said that the government is setting up a vast network of plants that convert garbage and cow dung into organic fertilizers and electricity. The Prime beneficiaries in ‘PM Kisan Yojana’. Minister stated that more than 50 biogas plants have already been constructed in the nation by numerous businesses, and he urged the cooperative societies 8 Fertilizersarebeingprovidedat to step up and assist “GOBARdhan” plants. He also added that it would help the cattle herders and the animals left on the highways. old rates despite expensive imports. model of transparency and corruption- Appeal for a new revolution in pulses free governance. The PM further said and oilseeds: self-reliant in the production of edible that the trust of the common citizens of oil when cooperatives will join hands the country in the cooperatives should The Prime Minister highlighted that with the government and work in this be stronger. For this, it is necessary that food security is not just about producing direction. Shri Modi proposed that the digital system should be promoted wheat and rice. He pointed out that cooperative organizations might offer in cooperatives as much as possible India spends about ₹2-2.5 lakh crores farmers various services and information and dependence on cash transactions annually on importing various food pertaining to plantation technology and should be eliminated. He appealed to items, including edible oil, pulses, fish, the acquisition of equipment. the people of the cooperative sector and processed foods. In order to make to make the entire cooperative sector the country “Atmanirbhar”, he urged Matsya Sampada Yojana cashless, digital and transparent. farmers and cooperatives to focus on The PM highlighted the achievements producing edible oil to make the country of the “PM Matsya Sampada Yojana” “India is known in the world for its self-sufficient and independent. and noted that it has become a source digital transactions. In such a situation, of additional revenue for farmers and cooperative societies and cooperative He pointed out that the government villagers living close to a water body. In banks will also have to take the lead in has operated on a mission-driven basis the fisheries sector, where industries this. With this, you will have a stronghold and provided examples such as “Mission like fish processing, fish drying, fish in the market and transparency, leading Palm Oil” and attempts to boost the curing, fish storage, fish canning, and fish to better competition,” he said. output of oil seeds. He expressed transport have been strengthened, more optimism that the country may become than 25,000 cooperative societies are at work. He emphasized the cooperative sector’s need to support this initiative and added that inland fisheries had also doubled over the past nine years. Shri Modi emphasized that the government is working towards the goal of developing 2 lakh new multipurpose societies across the nation and that the role of PACS is expanding in many new industries such as fish farming. According to him, the power of cooperatives would be extended through this to villages and panchayats where the current system is ineffective. ¿¿¿ July 2023 t Sahakar Jagran 7
Policy Cooperative Societies get Equal Status as Corporate Companies Sahakar Jagran Team ª After September, 85% of the country’s PACS will D uring his address work under the same bye-laws. at the 17th Indian Cooperative fully understands the needs of the disturbing the rights of the states and Union Ministry of Cooperation and the Centre. “With Modiji’s initiative, a Congress on the many changes have been made in the Parliamentary Committee completed cooperative sector under his guidance. the process of amending the MSCS International Day of Cooperatives, Shri He said that the Modi government has Act with consensus. This law will be tried to bring uniformity in cooperative introduced within this session itself,” Amit Shah, the Union Minister for Home law within the constitutional framework he said. without interfering with the rights of and Cooperation, announced that a bill the states and the Centre. The 2022 amendment bill seeks to amend the Act to align with certain aimed at amending the law on Multi He also added that the government provisions of the Constitution and intends to frame a new cooperative law address concerns with the functioning State Cooperative Societies (MSCS) to that will aid in the sector’s expansion and governance of cooperative over the next 25 years. Additionally, it societies. On December 20, 2022, the enhance the “ease of doing business” has begun inter-ministerial discussions bill was referred to a joint committee, to establish a cooperative university. which agreed with the majority of its will be introduced in the upcoming provisions and submitted it on March The Minister added that the 15, 2023. Shri Shah said earlier the Monsoon session of Parliament, government has tried to bring uniformity laws for Primary Agricultural Credit to the Cooperative Law within the Societies (PACS) were different across commencing on July 20. parameters of the Constitution without He said that numerous changes have become possible in the cooperative sector since the establishment of a separate ministry on July 6, 2021, and changes will continue to happen in the future. Shri Shah said that Prime Minister Shri Narendra Modi 8 Sahakar Jagran t July 2023
Policy Contribution of Paddy continued. Cooperatives in Purchase Apart from these, much work has Various Fields 20% been done in the cooperative sector Agriculture loan for the livelihood of the poor sections disbursement of society through credit cooperative societies, housing cooperative societies, 29% fisheries societies and cooperative banks. “We must make a commitment Fertilizer Wheat to contribute more to the nation’s Distribution Purchase growth over the course of the next 25 years of ‘Amrit Kaal’ than we did over 35% 13% the previous century. We must strive to better the lives of the poorest of the Fertilizer Milk poor and connect women and youth Production Purchase to cooperatives. We must incorporate newer areas in the cooperative 25% Sugar 15% sector and only by accepting self- Production discipline and reforms in order to 35% Spinning bring computerisation, modernization 30% and openness to cooperatives, we can realise Shri Modi’s vision of ‘Sahakar Se the country. To bring uniformity, the cooperatives in the storage system will Samriddhi’,” Shri Shah said. Ministry of Cooperation prepared increase to more than 35%. model bye-laws of PACS and sent them PM serious about as advisories to all the states and Union Commendable contribution of NCUI cooperatives’ needs Territories. The Minister of Cooperation said Shri Shah said that the PM has given many facilities to the people living “I am happy to share that 26 states that the National Cooperative Union below the poverty line, and now this and Union Territories have adopted the of India (NCUI) is the apex body of the class has emerged from the struggle for PACS model bye-laws. About 85% of cooperative sector, and NCUI, under basic facilities and is looking towards PACS will adhere to a single set of bye- the leadership of Shri Dileep Sanghani, its future with hope. He said that this laws from September onwards,” he said. has made excellent coordination and section does not have capital. By adding He also added that through this, Modi effort in taking every initiative and their small capital, they will be linked ji has made PACS multidimensional. change of the government from PACS to the new enterprise by making a big The model bye-laws will make the to Apex. capital through the cooperative. expansion of PACS very easy. He said The cooperative sector itself will that many activities, such as Common According to Shri Shah, the have to accept transparency and Service Centres (CSC), have been linked cooperative sector has made change. It is definitely difficult, but not to PACS, which will strengthen them significant contributions to the impossible. If we succeed in doing this, further and make them the centre of nation. It accounts for about 29% of then the cooperative movement of the rural facilities. the economy’s credit distribution, whole country will get a big boost. Shri 35% of its fertiliser distribution, 25% Shah said that the Prime Minister will Shri Shah said that the ministry has of its fertiliser production, more get a special mention in the history also taken the initiative in changing the than 35% of its sugar production, of the cooperative sector for his retail outlets, and recently the Prime nearly 15% milk procurement, 13% incomparable contribution. ¿¿¿ Minister also approved the world’s wheat procurement, and 20% paddy largest food grain storage scheme. He procurement. “We’ll boost the GDP said that with the scheme’s success share of cooperatives in the nation. in the next five years, the share of Moving forward requires us to accept transparency and transformation,” he July 2023 t Sahakar Jagran 9
Cover Story World’s Largest Grain Storage Plan in the Cooperative Sector ª An additional capacity Sahakar Jagran Team of 70 million tonnes he Minister of grain storage at T for Home and In order to increase the ₹1 lakh crore will be Cooperation, potential of the country’s developed in five Shri Amit Shah, villages and farmers in the years. Amrit Kaal, the role of the has prepared the cooperative department of the ª Post-harvest loss of country is going to be huge. thousands of crores world’s largest food grain storage Together, the government and of grains will be the cooperative will doubly halted. scheme, which has received the strengthen the resolution for a developed India, a self-reliant ª The cooperative approval of the Cabinet. The India. The issues related to sector will play an the cooperative sector which important role in government will develop a total of 7 were pending for years are increasing grain being resolved at a rapid storage capacity. crore tonnes of food grai n storage pace. Our government has also strengthened cooperative ª PACS will build capacity at ₹1 lakh crore. Primary banks. Rules and regulations godowns in each have been eased for them. village, the plan will Agricultural Credit Societies (PACS), be completed in three Shri Narendra Modi phases. the lowest unit of the cooperative Prime Minister of India 10 Sahakar Jagran t July 2023 sector, will play an important role ensuring the supply of food grains by increasing the productivity of crops, in this. Under the leadership of the government has chalked out a strategy for other options as well. Prime Minister Shri Narendra Modi and to realise his vision of “Sahakar Se Samriddhi”, the Ministry of Cooperation is working on a war footing to prevent crop wastage. India’s biggest and most serious challenge is feeding the country’s second-largest population on limited natural resources. To deal with this, the Central government is taking the help of cooperatives. Along with
Cover Story Campaign to open a Warehouse in Every Block At present, we have a storage capacity of over 140 million tonnes. In the next five years, we have resolved to create 50% more, which means about 70 million tonnes of new storage capacity. This is definitely a monumental task that will lead to the economic progress of the farmers of the country and create new jobs in the villages. For the first time, our government has also created a special fund of ₹1 lakh crore for the development of agricultural infrastructure in the villages. Under this, an investment of ₹40 thousand crore has been made in the last three years. PACS have a major share in this. The cooperative sector needs to make more efforts in the creation of cold storage and farm gate infrastructure. To increase agricultural Benefits of decentralised grain storage at the PACS level productivity, the Central government has decided to increase the use of 8 R eduction in current post-harvest loss of 6%. authentic progressive seeds, under 8 Cut down on the cost of repeated handling and shipping expenses. which a new Multi State Seed 8 Freedom for those farmers who sell at low prices under pressure. Cooperative Society has been formed. 8 Convenience in government procurement of food grains at the local level. Watershed development is being 8 Storage based on a hub and spoke distribution model. implemented under “Pradhan Mantri Krishi Sinchayee Yojana” (PMKSY) to storage scheme will help prevent the If we look at the storage of other increase the area of c ultivable land. wastage of food grains in India from countries, the capacity of food The third biggest step is to increase farm to barn (post-harvest), and the storage in India is much less than the food storage capacity. role of cooperative societies will be the requirement. In India, there important. is only 47% storage facility for the India, the most populous country total food grains, whereas, in other in the world, accounts for 18% or 1.4 A dire need for decentralised food countries, the storage capacity is billion, of the global population at 7.9 storage is being felt in India. With this 131%. The storage capacity in China billion. However, it accounts for only decision of the Cabinet Committee is 660 million tonnes against the total 11%, which is 160 million hectares, of on Economic Affairs (CCEA), godowns production of 615 million tonnes of arable land (1,380 million hectares) will be set up in every village, which food grains. America has a storage worldwide. Also, India runs the will benefit the farmers the most. capacity of 680 million tonnes world’s largest food programme The scheme has been implemented against 422 million tonnes of food under the National Food Security Act, nationwide on an experimental basis grain production. In comparison, 2013, which covers about 81 crore (pilot project), after the success of India’s total food grain production people. Therefore, a robust network which it will be implemented across is 311 million tonnes, while the of foodgrain storage facilities the country in a phased manner. At storage capacity is only 145 million becomes essential to ensure the food least 2,000 tonnes of grain storage tonnes. India has a total shortage security of a billion-plus population. capacity will be increased in each of 166 million tonnes of food grain block of the country. The completion of the grain July 2023 t Sahakar Jagran 11
Cover Story With the plan of setting up the There was a need to increase storage in India world’s largest decentralized 800 n Food production n Storage capacity storage capacity, farmers associated with cooperative 700 615 660 680 m Storage capacity in other countries: 131% societies will be able to get a m Storage Capacity in India: 47% fair price for their produce by 600 m Storage Shortage in India: 16.6 MMT selling it at the appropriate MMT 500 time. This will play an 422 important role in Modiji’s resolve to increase the income 400 311 of the farmers. 300 Shri Amit Shah, Union Minister for Home and 200 180 156 100 118 Cooperation 145 121 0 China USA India Brazil Russia storage. Brazil, Russia, Argentina, and expand its business activities. have been formed to strengthen the Ukraine, France and Canada also Projects like the computerization rural economy. have more storage capacity than of 63,000 active PACS have reached food production. completion. A national database has Decentralized procurement of been prepared by mapping village food grains will strengthen the supply The government has launched and panchayat level PACS, along with chain, involving PACS, the private many important initiatives in the other cooperative societies. Three sector and government agencies like cooperative sector to meet this national-level cooperative societies the Food Corporation of India (FCI). huge shortage. New model bye- (Seed, Organic Farming and Export) Due to government procurement at laws are introduced to reform PACS the local level, local needs can also 12 Sahakar Jagran t July 2023
Cover Story An important decision of Districts and PACS identified forthe pilot project the Cabinet Serial Name of State Name of District Name of PACS As per the decision of the Union No. Cabinet, an Inter Ministerial Committee (IMC) has been 1. Andhra Pradesh West Godavari Mrityunjay Cooperative Society Achanta constituted to make changes to simplify the food storage scheme. 2. Assam Kamrup Pub-Bangeshar SS PACS The IMC will also coordinate between various ministries. The 3. Gujarat Ahmedabad Nana Ubhda Seva Sahakari Mandali eight-member IMC, which is to be constituted under the chairmanship 4. Haryana Hisar Madha PACS of the Union Minister for Cooperation, has the Minister for 5. J&K Kathua Salor PACS Agriculture and Farmers’ Welfare, the Minister for Food Processing 6. Jharkhand Deogarh Jarka (two) Industries, the Minister for Consumer Affairs, Food and Public 7. Karnataka Dakshina Kannada Kalmadaka PACS Distribution and the secretaries of all these ministries as its members. 8. Madhya Pradesh Balaghat Paraswara Committee be met from there. Food grains can 9. Maharashtra Amravati Napringli Miscellaneous Executive be supplied at low cost for Public Distribution System (PDS) at nearby Cooperative Service Society markets and subsidised ration shops. While this will help in controlling 10. Odisha Mayurbhanj Basinga Lamps inflation, the burden of food subsidies on the exchequer will also 11. Rajasthan Shri Ganganagar Ghamudwali Village Service Cooperative reduce. Society Establishing custom hiring centres (CHCs) at the PACS level will help 12. Tamil Nadu Theni Cinnamanur PACS increase the yield and prevent crop wastage. Provisions have been made 13. Telangana Karimnagar Gambirraopet PACS to provide subsidies to PACS in Agriculture Infrastructure Fund and 14. Tripura Gomti Khilpada PACS Agriculture Marketing Infrastructure (AMI) Scheme. Under this, machines 15. Uttar Pradesh Mirzapur Kotwa Pandey Farmers Service for threshing, winnowing and drying of grains can be procured. Cooperative Society New flexi technology will be 16. Uttarakhand Haridwar Elderly Farmers Service Cooperative used in the food storage scheme. Silos of 50, 100 and 200 tonnes Society (steel godowns with modern technology) will be made according 17. Nagaland Peren Hepui Multipurpose Cooperative Society to the requirement of grains at the gram panchayat level. These PACS 18. Punjab Moga Sukhanand PACS warehouses can be taken on rent 19. West Bengal Howrah Pancharul AKUS 20. Arunachal Pradesh Changlang NM Lamps 21. Chhattisgarh Durg Kesra Committee Shivalik Cooperative Rosin Limited 22. Himachal Pradesh Una PACS Consortium Candidate IVCS 23. Kerala Kottayam 24. Meghalaya Ri Bhoi There are also a dozen such states and Union Territories in India where there is a huge gap between the supply and storage capacity of food grains, but their PACS could not be identified due to various reasons. Sr. State Storage Status Difference between Present Status No. Name supply and storage capacity 1. Bihar 22.20 lakh tonnes shortage PACS identified 2. Goa Lack of 81 thousand tonnes Land not available with PACS 3. Manipur Lack of 83 thousand tonnes PACS not marked 4. Mizoram 28 thousand tonnes shortage PACS not marked 5. Sikkim Lack of 21 thousand tonnes Land not available with PACS 6. Andaman Lack of 10 thousand tonnes Land not available with PACS and Nicobar 7. Dadra Nagar, Haveli, Daman and Diu 8. Delhi 9. Chandigarh 10. Lakshadweep July 2023 t Sahakar Jagran 13
Cover Story Storage Capacity Vs Production (%) by the Food Corporation of India (FCI) and other private agencies for State-wise food grain storage, which will add to PACS’ storage capacity (%) income. The grains purchased by n > 100% PACS can be sold at the minimum n 90-100% support price (MSP). These godowns n 70-90% will also have facilities for processing n 50-70% grains so that the produce can be n 40-50% sold after adding value. n 30-40% n 20-30% The pilot project will start in n 5-20% some selected districts. National n > 5% Cooperative Development Corporation (NCDC) has Major Public Sector Warehousing been entrusted with the Organizations in India responsibility of implementing the entire scheme. For this, a 8 Food Corporation of India (FCI) project management unit (PMU) 8 Central Warehousing Corporation (CWC) has been established in the NCDC 8 Warehousing Development and Regulatory Authority (WDRA) headquarters. ¿¿¿ 8 State Warehousing Corporation (SWC) 8 Railway Warehousing Corporation Godowns 138 million hectares of arable 8 Godowns of State Civil Supplies Department land in the world. 160 million hectares of In addition, private sector warehouses in India are built by private and agricultural land in India (11%). business establishments and the corporate sector. The major World population 790 crore. responsibility of building new godowns of additional capacity is being 140 crore in India (18% of the entrusted to PACS that have been designated to set up custom hiring world). centres, purchase food grains from farmers, set up primary processing To meet the requirement of food centres after purchasing food grains from mandis and develop the grains for 18% of the population capacity to store food grains. from 11% of the land. 14 Sahakar Jagran t July 2023
Cover Story The food storage facility will be better A total of 430 districts in 26 states and three union territories are facing severe storage shortages, adding to the hardships of the farmers there. There are about 74,000 PACS in these districts. The storage of food grains here is not even equal to the Public Distribution System (PDS) requirement, while the production of food grains in these districts is more (surplus) than the total requirement. However, out of 134 districts in five states, nine districts have sufficient storage capacity. There are a total of 620 PACS in these 130 districts. Punjab is the only state among the food-producing states which has adequate storage facilities. Out of 52 districts of Madhya Pradesh, only one district is short on storage. Similarly, there is a shortage of storage in three districts of Haryana, while 22 out of 23 districts of West Bengal and 64 out of 75 districts of Uttar Pradesh have an acute shortage of storage. The storage condition of food grains is not satisfactory in states like Bihar, Karnataka, Odisha, Jharkhand, Assam, Maharashtra, Gujarat and Rajasthan. The actual position of storage in the rest of the states can be seen from the figures in the table below. ¿¿¿ State/Union Territory (District) District No. of Storage Shortage PACS 1. West Bengal (23) 22 5224 2. Uttar Pradesh (75) 64 6595 3. Bihar (38) 31 7057 4. Karnataka (32) 28 5761 5. Odisha (30) 26 2509 6. Jharkhand (24) 23 4164 7. Assam (31) 26 1459 8. Maharashtra (35) 28 17536 9. Gujarat (33) 24 7696 10. Kerala (14) 2 291 11. Rajasthan (33) 27 6178 12. Himachal Pradesh (12) 10 2110 13. Jammu and Kashmir (20) 17 545 14. Tripura (8) 7 25 15. Meghalaya (12) 9 420 16. Nagaland (16) 10 1140 17. Manipur (16) 8 173 18. Goa (2) 1 44 19. Mizoram (11) 4 40 20. Sikkim (6) 2 126 21. Uttarakhand (13) 10 483 22. Dadranagar-Haveli Daman & Diu (3) 1 8 23. Andaman and Nicobar(3) 1 28 24. Tamil Nadu (38) 19 2624 25. Telangana (33) 8 157 26. Chhattisgarh (33) 7 242 27. Andhra Pradesh (26) 11 685 28. Haryana (22) 3 54 29. Madhya Pradesh (52) 1 26 Total 26 States and 3 Union Territories (694) 430 73633 July 2023 t Sahakar Jagran 15
Shanghai Summit SCO will move Ahead with the Mantra of ‘Vasudhaiva Kutumbakam’: PM Modi Sahakar Jagran Team P residing over the summit of Shanghai Cooperation Organization (SCO) member countries, Prime Minister Shri Narendra Modi said that India has made continuous efforts to take SCO to new heights. Considering the whole world as one family with the mantra of “Vasudhaiva Kutumbakam”, India lays special emphasis on mutual security, economic development, connectivity, unity, respect for sovereignty and environmental protection of countries. This is the theme and vision of SCO, he said. Shri Modi said that India’s endeavour has been to deepen people-to-people ties rather than keeping the cooperation within the SCO confined to governments alone. For this, new initiatives have been taken under the chairmanship of India. During India’s presidency, Varanasi, SCO, remained the centre of attraction many new forums to harness the energy for various programmes. India organized and talent of the youth from SCO countries. the first tourism and cultural capital of PM Modi Calls for Anaemia-Free India Prime Minister Shri Narendra Modi reiterated his facilitating early detection and treatment. Shri Modi also commitment to free the country from sickle cell anaemia launched the distribution of about 3.57 crore digital cards during the “Amrit Kaal” of Independence. “Sickle cell anaemia to the beneficiaries of “Ayushman Bharat Pradhan Mantri disease affects the tribal sections of society significantly,” the Jan Arogya Yojana” (AB-PMJAY). One crore cards were PM said at the launch of the National Sickle Cell Anaemia distributed physically to beneficiaries in Madhya Pradesh. At Elimination Mission organized in Shahdol, Madhya Pradesh. the event, Dr Mansukh Mandaviya, the Union Minister for He added that this disease will be eradicated before the Health and Family Welfare, stated that the Ministry of Health completion of “Amrit Kaal” in 2047. The impact of this disease and Family Welfare, along with the Ministry of Tribal Affairs, is not only on the patient but also on the whole family. Hence, has developed the National Sickle Cell Anaemia Elimination the mission incorporates strategies to raise awareness Programme under the guidance of the visionary leadership of and promote knowledge about the disease, focusing on the Prime Minister. 16 Sahakar Jagran t July 2023
Diplomacy Modi: India, US aim to create a Better World for All Sahakar Jagran Team of them sit proudly in this Congress. For more than two centuries, we have inspired R elations between each other with the lifestyles of great India and the United Americans and Indians. We pay tribute to States go a long way. Mahatma Gandhi and Martin Luther King The latest US tour of Jr.” Prime Minister Shri Narendra Modi has He continued, “Last year India celebrated 75 years of independence. worked to give a new dimension to these Every milestone is important, but this one was special. We celebrated the remarkable relations. He has described India’s current journey of over 75 years to freedom, after a thousand years of foreign rule in one ties with America as historical. Addressing form or the other.” the US Congress during his visit, he said The PM also said, “When I visited the US for the first time as the Prime Minister, that democracy is a sacred and shared India was the tenth largest economy in the world. Today, India is the fifth largest value between the two countries. He also various forms and arrangements. economy and will soon be the third largest Democracy is the spirit that supports economy. We are not only developing but expressed his belief that both countries equality and dignity. Our partnership also growing rapidly. When India grows, augurs well for the future of democracy. the whole world grows.” ¿¿¿ can work together towards creating a Together we will give a better future to the world and a better world to the future.” better future for the world. Expressing the contribution of Indians Expressing India’s firm belief in in the development of America, Shri Modi said, “There are millions of people democracy, the Prime Minister said, “The here who have their roots in India. Some beauty of democracy is to constantly connect with the people, listen to them and feel their pulse. It has evolved over a long period of time and has adopted Addressing the current global scenario, of essential resources such as food, fuel, “Formation of an inclusive government the Prime Minister acknowledged that the and fertilisers further exacerbates the in Afghanistan, the fight against terrorism, world is grappling with conflicts, tensions, situation. At the summit, he strongly drug trafficking, and ensuring the rights of and pandemics, which pose significant criticised the neighbouring countries women, children and minorities are our challenges for all nations. The scarcity involved in terrorist activities. joint priorities,” he said. ¿¿¿ Vande Bharat a the Jodhpur-Ahmedabad (Sabarmati) the day is not far when Vande Bharat Boon for the Middle Vande Bharat Express, bringing the will connect every corner of the total number of operational Vande country. The Prime Minister also Class: PM Modi Bharat routes in the country to 50. laid the foundation stone for the redevelopment of Gorakhpur Railway A total of 50 Vande Bharat Shri Modi said that Vande Bharat Station at a cost of about ₹498 crore. routes are operational now. has given a new flight to the country’s After being redeveloped, passengers middle class with facilities and amenities will get world-class facilities at the Prime Minister Shri Narendra and called it a boon for them. He added station. The Gorakhpur-Lucknow Modi flagged off two Vande Bharat that the train’s demand is increasing Vande Bharat Express will pass through Express trains from Gorakhpur day by day, with leaders from across Ayodhya, improve connectivity to Railway Station in Uttar Pradesh. the country requesting Vande Bharat important cities of the state, and These trains are the Gorakhpur- to be run from their region. promote tourism. ¿¿¿ Lucknow Vande Bharat Express and Expressing confidence, he said July 2023 t Sahakar Jagran 17
Action Zero Tolerance Policy against Narcotics Sahakar Jagran Team A ppreciating all the organizations and individuals fighting against drugs on the “International Day against Drug Abuse and Illicit Trafficking,” Union Minister for Home and Cooperation Shri Amit Shah has decided to vigorously campaign against narcotics in the country. He said that the government has adopted the policy Calling for public cooperation in this drug misuse and side effects is being campaign, Shri Shah said that drugs not run on a war footing at the national of ‘zero tolerance against narcotics’ only make the young generation and level through appropriate forums. society hollow, but the money earned He appealed to the people to protect under the guidance of Prime Minister from its smuggling is used against the themselves and their families from security of the country. drugs and actively participate in this Shri Narendra Modi and its results are war against its misuse. ¿¿¿ He added that the campaign against also visible. Shri Shah said, “It is our resolve to achieve the goal of a ‘drug-free India’. We will neither allow the CREDAI builds Garden-People’s Park for Environmental Protection trade of narcotics in India nor will Inaugurating the Confederation of Real Estate Developers’ Associations we allow drugs to be routed to the of India (CREDAI) Garden-People’s Park, the Union Minister of Cooperation, Shri Amit Shah, said that CREDAI has constructed the beautiful park in an area world through India.” He highlighted of 12,000 square meters at a cost of about ₹2.5 crore. He said that CREDAI has made this lovely public garden considering the environment and the the government’s unwavering stance middle class, upper middle class and poor children. Along with increasing urbanization, the park is a nice and relaxing place for common citizens. Shri against narcotics by presenting facts. Shah said that CREDAI is doing commendable work in infrastructure creation, youth skill development, and social reform. This has increased its credibility as He pointed out that the amount of an institution. He noted that CREDAI has also provided sports facilities in 75 Anganwadis for children under the Corporate Social Responsibility (CSR) Fund, seized drugs was only worth ₹768 crore which is inspirational for many people. This will not only inculcate the habit of playing among children but also increase their self-confidence and remove any from 2006-2013 but increased nearly inferiority complex from their minds. 30-fold to ₹22 thousand crore in 2014- 22. Furthermore, the NDA government recorded 181% more cases against drug peddlers compared to previous years. In June 2022, the government initiated a campaign to destroy confiscated drugs in order to prevent their reuse. As of now, approximately 600,000 kg of seized drugs have been destroyed throughout the country. 18 Sahakar Jagran t July 2023
Transformation Ganga Rejuvenation 75 Villages Transformed through Sahakar Ganga Grams Sahakar Jagran Team U nion Minister of State for Cooperation Shri BL Verma recently inaugurated the second session of the “Sahakar Ganga Gram Project” in Varanasi, organized by Sahakar Bharti. The project aims to achieve several ª The campaign to make the villages along the banks of the Ganga self-reliant and goals, including selecting 75 villages in economically developed is in full swing. five states along the Ganga and labelling them as “Sahakar Ganga Grams.” This initiative is designed to encourage natural farming, farmer Talking about the government’s Gram Project’ is a comprehensive action plan in this direction, Shri programme that trains farmers in producer organizations (FPOs), and Verma said that these 75 villages are readying not only their farms but also cooperatives in the Gangetic states. The in Uttarakhand, Uttar Pradesh, Bihar, crop diversification, crop protection, project also aims to increase net income Jharkhand and West Bengal. proper marketing, technical capacity for farmers, facilitate the marketing of building, and improving the livelihood He also said that through the standards of farmers. With this, the natural farming and organic produce development of cooperatives in the facilities of organic farming, market on country and its expansion among the the ghat, manure from mud, marketing under the Ganga brand, establish common people, a new environment of agriculture and horticulture products market linkages, and promote economic is being created to protect the water and tourism will be expanded. connectivity between people and the sector, environment, agriculture, etc. river. In order to fulfil Prime Minister People living on the banks of the Ganga Shri Verma said that on the special are the first unit to make it pollution occasion of ‘Azadi Ka Amrit Mahotsav’, Shri Narendra Modi’s vision of ‘Sahakar free. Residents here are getting new the poor sections of the society along Se Samriddhi’, ‘Sahakar Ganga Grams’ employment opportunities. Organic the river are being empowered through on the banks of the Ganga are being farming is getting a huge boost on the Ganga conservation, village prosperity rejuvenated through cooperatives. banks of the Ganges. and self-reliance. In these villages, local Sahakar Bharati has engaged itself with residents will also be encouraged and This will help in boosting the rural guided in horticulture, dairy, sheep, establishing and strengthening local economy while preserving nature. goat and poultry farming, fish farming, Elaborating on the government’s making organic fertilisers and other cooperatives to realize the mandate desire to promote natural farming and non-agricultural businesses through of the ‘Arth Ganga’ concept for river other activities in the Ganga basin, cooperatives. ¿¿¿ rejuvenation leading to the growth of a the Minister said that ‘Sahakar Ganga sustainable economic model. Sahakar Ganga Gram Project aims to preserve Ganga’s natural water flow and the local villages’ overall development. July 2023 t Sahakar Jagran 19
Achievement Cooperatives’ expansion leading to Rural Economic Development Sahakar Jagran Team of farmers, labourers, and women. success stories of cooperatives have to Currently, the Central government be taken to the masses. A t the 17th Indian Cooperative is taking policy decisions by making Speaking on the occasion, Union Congress organized Prime Minister Shri Narendra Modi’s Minister for Fisheries, Animal by the National aspiration of “Sahakar Se Samriddhi” Husbandry and Dairying Shri the main basis of economic prosperity Parshottam Rupala said that IFFCO’s Cooperative Union of India (NCUI), Lok and development of the country. Nano Urea has brought glory to the cooperative movement. He added that Sabha Speaker Shri Om Birla said that Pointing towards the massive the cooperative sector should make changes brought about by the joint efforts to popularise Nano Urea efforts are being made to establish a formation of the Ministry of to make it accessible to every farmer. Cooperation under the able leadership cooperative society in every panchayat. of Shri Amit Shah, Shri Birla appreciated Shri Rupala stressed the need to the massive efforts of the government inculcate the habit of savings in the The Central government is working on to strengthen the Primary Agricultural cooperatives. He cited Gujarat’s Bal Credit Societies (PACS). He said that Gopal Bank, with a turnover of Rs the resolve to establish cooperatives the PACS are getting viable and vibrant 16 crore, as a successful example of and the facilities for the farmers are cooperatives. as a model of economic development expanding. President of International for rural transformation. He said that The government has decided to Cooperative Alliance Asia-Pacific (ICA- increase the capacity of food storage. AP) and Krishak Bharti Cooperative cooperatives have always worked to This will provide a lot of relief to Limited (KRIBHCO) Dr. Chandra farmers across the country and they Pal Singh Yadav said that PACS are meet the basic needs of the people. will be able to get a fair price for their becoming self-reliant with the help of produce. Highlighting the success of model bye-laws. He added that PACS The development of a country and cooperatives in the White Revolution will be able to conduct 40 types of and Blue Revolution, he said that the multidimensional activities. ¿¿¿ society is not possible without the spirit of cooperation. In our country, the spirit of cooperation lies in people’s minds, thoughts and actions. After Independence, cooperatives showed the path of progress and also learned to solve challenges through cooperation. Cooperatives have played a significant role in driving socio-economic changes in India, positively impacting the lives 20 Sahakar Jagran t July 2023
Iniative NCUI collaborates with HCL Foundation to empower Marginalised Communities Sahakar Jagran Team ª HCL Foundation will also do branding for SHGs and cooperatives. T he National Cooperative Union of India (NCUI) years. Every participant will receive motivating communities to form SHGs, financial and digital education, along and developing branding plans for entered into with regular health check-up camps and their progress. She also said that HCL awareness programmes. Foundation conducts various projects to a strategic partnership with HCL make artisans, SHGs and communities He added that by forming 50 multi- self-reliant. Foundation to develop training purpose cooperative societies, more than 200 SHGs of 3,000 members would She emphasized that there is a need infrastructure and provide branding be nurtured. According to NCUI officials, to form new cooperatives in the country the Centre for Entrepreneurship to empower artisans and to make support to cooperatives. In this regard, Development and Cooperation (CEDC) them aware of new uses of technology was working with HCL Foundation for and livelihood. This partnership of a Memorandum of Understanding the past two months to determine the the NCUI and HCL Foundation will potential focus areas. The objective open avenues for the advancement (MoU) was signed between the two. of the partnership is to develop the of artisans, women and youth from newly constructed Skill Development underprivileged communities of society, Over the next three years, the NCUI Centre of the NCUI at Sector 80, Noida, improving their lives through successful as a world-class entrepreneurship and development schemes and cooperative and HCL Foundation will provide self- livelihood centre. Shri Sanghani said entrepreneurship ventures. that this partnership will strengthen help groups (SHGs) and cooperatives the efforts of the NCUI to realise Prime The HCL Foundation Vice-President Minister Shri Narendra Modi’s vision of also talked about marketing and throughout India with training “Sahakar Se Samriddhi”. branding support for the ongoing projects of the NCUI as well as providing infrastructure, as well as marketing and Dr. Pundir said the foundation will a platform for cooperative products and make concentrated efforts to achieve other interventions. Dr. Mahajan asked branding platforms. the goals of the NCUI. This includes the CEDC team of HCL Foundation to establishing NCUI Incubation Centers create a future plan of action regarding The MoU was signed by Dr. Sudhir and NCUI Haats in other states, this matter. ¿¿¿ Mahajan, CEO of the NCUI, and Dr Nidhi Pundir, Vice-President of HCL Foundation, in the presence of Shri Dilip Sanghani, President of the NCUI. Dr. Mahajan said that more than 5,000 women, youth and artisans from marginalised communities will be trained for sustainable income- generating opportunities, and 90% of the trained participants will be placed in the private sector and other relevant organizations over the course of three July 2023 t Sahakar Jagran 21
Campaign NCCE Introduces Course on Cooperative Laws and Practices Rachita Agrawal new batch, the course is modified education imparted to the general L egal complications to include the suggestions of the public through cooperative societies can cooperative members. The course aims be a potent tool for creating awareness arise in the to educate the cooperative members about legal rights, duties, and justice from various regions of the country and for all. The cooperatives may play a functioning of instil legal awareness at the grassroots significant part in this by spreading the level in every cooperative. This unique knowledge of the law through legal the cooperative experimental course has been launched literacy and awareness camps, training to develop a workforce of legally programmes, and seminars. societies. In this context, the National capable cooperative members. Cooperative societies can organize Centre for Cooperative Education Legal knowledge educates special legal information sessions by people about their legal rights and bringing in legal experts to educate (NCCE), under the aegis of NCUI, has responsibilities so that they are better them on numerous legal issues equipped to face any legal challenges regarding how cooperatives operate. begun offering a course on ‘Cooperative that may arise in their personal and Members have comparatively little legal professional lives. Legal literacy among understanding of topics like registration, Laws and Practices’ in collaboration citizens encourages adherence to dispute resolution, compliance with the law, which is crucial for a robust rules, contracts, etc. The members may with Guru Gobind Singh Indraprastha democratic society. Individuals can receive educational materials, including make wise decisions and act responsibly pamphlets, brochures, and videos that University, Delhi. The course, which if they are aware of the law. The explain legal procedures and concepts promotion of good governance, which in simple, understandable language. has been well received, helps ensures accountability and openness Due to bridging of the knowledge gaps, in public institutions, is aided by legal members may be better equipped to cooperative members in developing a education. Legal education promotes navigate the legal system. a culture of lawfulness, where people thorough awareness of the challenges respect the law and its institutions, The cooperative societies may also which also helps to create a civilized, establish legal assistance cells to offer and complexities associated with educated and peaceful society. Legal legal counselling to the members. Additionally, organizations have the cooperative operations. This two-week course offers a working knowledge of cooperative laws. More than 130 individuals from across India have participated in the programme and learned about cooperative regulations. The credit for the success of this course goes to the qualified and skilful instructors. This course’s goal is to educate cooperative members on the legal intricacies and difficulties they encounter during cooperative operations. With each 22 Sahakar Jagran t July 2023
Campaign option to contact the specialists members benefit from a better reputation. to get legal advisory services. This understanding of the obligations of Legally sound cooperative members can help members to handle legal different cooperative stakeholders. matters pertaining to their cooperative can save their organizations from membership without incurring high Access to Funding and Support: unnecessary legal costs and disputes, costs. Legal knowledge is essential for Governmental organizations, financial which in the future can substantially cooperatives as they are governed institutions, and other stakeholders affect the financial stability of by laws that cover everything from are more likely to provide money and cooperatives. Legal awareness also registration to dissolution. This assistance to cooperatives that adhere empowers cooperative members covers the policies and procedures, to legal and regulatory standards. to participate in decision-making interactions with the members and processes and hold the cooperative’s other stakeholders like suppliers, It is essential for a cooperative’s management accountable, which is buyers, and regulatory organizations. sustainability that its members are essential for good governance. Cooperative members’ adherence to aware of the laws and regulations that the law is crucial in this regard. apply to them. Legal disputes may result Legal knowledge can also provide from the failure to abide by the law, cooperative organizations with more Compliance with Laws and which could harm the cooperative’s bargaining power when dealing with Regulations: Cooperatives are subject activities and reputation. other parties. For instance, members to a variety of rules and regulations, who are informed of their rights and including cooperative laws, labour Cooperatives with legally competent obligations might negotiate better laws, tax laws, and environmental members can avoid needless legal fees terms and pricing with buyers and laws. Legal awareness guarantees that and conflicts that could significantly suppliers, benefiting the cooperative. cooperative members are aware of impact their financial stability in the their legal responsibilities and adhere future. Legal knowledge also gives Cooperative members must get to all applicable laws and regulations. cooperative members the power to proper training and instruction on legal take part in decision-making and hold matters that impact their operations Protecting the Rights and Interests of the administration of the cooperative since legal awareness is fundamental the Members: Legal awareness protects accountable, which is crucial for good to the success and sustainability of the interests of the group members governance. cooperatives. The initiative of NCCE in the organization and makes the to start the Course of Cooperative cooperative members aware of their Legal awareness helps a Laws and Practices is a definite step rights and obligations. Additionally, cooperative’s members to comply with towards strengthening cooperative cooperative members instruct the relevant laws and regulations, which is legal education in India and should be people in their environment. critical for their sustainability. Failure supported from all quarters. ¿¿¿ to comply with the legal framework Risk Management: Legal, financial can lead to legal disputes, which can Indraprastha Research Fellow, and reputational concerns are the harm the cooperative’s operations and USLLS, GGSIPU, New Delhi risks that cooperatives must deal with. Cooperative members who have knowledge of the law are better able to recognize these dangers, manage them and prevent legal disputes and liabilities. Better Governance: Legal awareness promotes good governance, including transparency, accountability and participation in cooperatives. The July 2023 t Sahakar Jagran 23
Efforts Building Financial Resilience How Cooperatives secure Funding for Growth Anurag Dang banks, credit unions, or other C ooperative societies financial institutions. can utilize various sources of finance Debt financing can be in the form of loans, lines to meet their of credit or bonds. capital requirements and support their The cooperative operations. Some of the major sources may need to of finance for cooperative businesses provide collateral are as follows: or personal Member Contribution: guarantees to Cooperative members are the secure loans, primary source of finance for a depending cooperative. Members contribute on its capital by purchasing shares for their financial own use or on the basis of patronage standing and the of the cooperative society. This is lender’s requirements. Before known as the initial capital for the providing loans, lenders evaluate these grants boost the credibility and visibility of the cooperative. operations and investments of the a cooperative’s financial stability, Cooperative Development Fund: cooperative. These contributions assets, cash flow and repayment Some regions have cooperative development funds that provide form the equity base (Equity Share capacity. financial support specifically for cooperative enterprises. These funds Capital), which may not be sufficient Grants and Subsidies: are often established by government agencies, cooperative associations, for a cooperative’s expansion and A cooperative may be eligible for or development organizations to foster cooperative development development plans. grants, subsidies, or financial assistance and provide financial assistance to cooperatives at various stages of Retained Earnings from government agencies, non-profit growth. This fund is used to provide the society with funding, technical A cooperative can generate profits organizations, or foundations. These support and access to networking opportunities. from its operations, which can be sources may support specific cooperative Supplier and Trade Credit: retained in the business to finance initiatives, such as community A cooperative may negotiate favourable credit terms with suppliers future growth and development. development projects, research and or other business partners. It provides short-term financing to manage Retained earnings are accumulated development, sustainability initiatives cash flow and inventory needs. over time and reinvested into the or innovation programme. cooperative, contributing to its capital For example, an agricultural base and providing stability and cooperative that focuses on flexibility. This gives the cooperative sustainable farming practices can society an opportunity to raise funds for apply for and receive a government its growth and reduces its dependence grant to support its environmentally on external sources of finance. friendly initiatives. The grant money Debt Financing: is used to implement eco-friendly A cooperative society may borrow technologies, such as solar panels or money from external sources such as water-saving irrigation systems. Thus, 24 Sahakar Jagran t July 2023
Efforts Supplier credit allows cooperatives Cooperative Federations and Networks to obtain goods or services upfront A cooperative can join federations or networks that provide financial support, such as access to shared resources, loan facilities or investment and to defer payment for a specified opportunities. These cooperative alliances help strengthen the financial capacity of individual cooperatives. Cooperative federations offer loans and period, thereby providing short- investment opportunities to cooperative societies. The cooperative approach enhances their collective bargaining power and market presence. term financing. Trade credit can help The cooperatives can use these sources of funding depending on their specific needs, stage of development and industry requirements. It is manage cash flow and working capital important to assess the financial implications and consider the long-term sustainability of the cooperative when selecting the appropriate sources of needs, especially in industries where finance. The cooperatives must carefully evaluate and consider the suitability of each source of finance based on their specific needs and goals. Consulting payment terms are common practice. with financial professionals or cooperative development organizations can provide valuable guidance in identifying and securing suitable financing It preserves working capital for other options. cooperative expenses. Crowdfunding: A cooperative society can explore crowdfunding platforms as a medium to raise capital from a large number of individuals or organizations. Crowdfunding allows cooperative members, supporters These bonds provide an attractive purchasing community bonds. The return on investment and enable or the general public to contribute community members to actively success of the cooperative provides support the cooperative society’s funds in exchange for rewards, equity mission. They provide an opportunity an opportunity for the community for community members to invest or loan repayment. It can effectively in the cooperative by members to benefit financially. raise capital, generate community External Equity: support and create awareness about A cooperative may attract equity a cooperative’s mission and products. investments from outside investors The success of crowdfunding relies on who believe in the mission and effective marketing and community vision of the cooperative. These engagement efforts. investments provide additional Community Investment: capital in exchange for A cooperative society ownership stakes in the may solicit investment cooperative, alongside from members the expectations of of the local financial returns community who and positive are interested in environmental supporting the Cooperative Development Finance outcomes. However, bank cooperative’s it is important to activities. These Cooperative ensure that such investments can equity investments take the form align with the of debt, equity or cooperative’s principles community bonds, and values to maintain its allowing individuals to cooperative identity. ¿¿¿ participate directly in the Assistant Director (Finance), cooperative’s success. NCUI July 2023 t Sahakar Jagran 25
Model Village Model Cooperative Village Programme Spurs Economic Opportunities and Social Progress Model Amongst the several model village initiative schemes introduced in the Cooperative country, the cooperatives have been brought to the centre stage. Village Programme The Union Cabinet has approved the Central government’s “Vibrant Villages Programme”, with a budget of ₹4,800 crore for 2022–2023 to 2025–2026. The scheme’s main goal is to improve the quality of life for those living in border villages along the country’s northern border through comprehensive development. Sanjay Kumar Verma cooperative societies for exports, seed was introduced on April 10, 2022, in he formation of production, and organic farming, have the village of Baula in the Ahmedabad T the Ministry of been undertaken to revolutionize the district of Gujarat. Cooperatives cooperative sector. For the first time, has given a new the cooperatives have been brought to Six Gujarati villages have been the centre stage amongst the various selected for the implementation of direction to the village development programs. the programme: Adroda and Rethal in Ahmedabad, Adarj Moti and Isanpur growth of the cooperative movement National Bank for Agriculture and Mota in Gandhinagar, Pipero in Dahod, Rural Development (NABARD) is jointly and Kolithod in Rajkot. in India. A number of significant steps implementing the Model Cooperative Village Programme in close coordination PACS has been used as the have been taken to initiate substantial with different stakeholders such as the foundation for the programme’s government of Gujarat, Gujarat State primary goal, which is to guarantee reforms in the cooperative sector Cooperative Bank, District Central livelihood opportunities for at least two Cooperative Banks and community- members of each household. across the nation. One particular based organizations. The Adarsh Cooperative Village initiative in the cooperative sector, the This programme aims to realize Programme also seeks to the vision of “Sahakar Se Samriddhi” Model Cooperative Village Programme, by creating “Atmanirbhar Gaon”. It 8 Achieve rapid and inclusive growth is quite significant in this regard.. through the development of infrastructure, the promotion of A number of several new reform initiatives, including the computerization of Primary Cooperative Credit Societies (PACS) and the establishment of multistate 26 Sahakar Jagran t July 2023
Model Village livelihoods, the advancement of PACS: Strength of the Rural Economy health and education, the provision of banking and insurance services, The success of the Model Cooperative Village Programme relies heavily on and the provision of public services. PACS. The government is actively working to revitalize cooperative societies and is providing digital projects and financial resources to strengthen PACS. A 8 Bring governance to the doorsteps common software linking PACS with District Central Cooperative Banks (DCCB) and NABARD will professionalize the functioning of PACS and make of the people by expanding the its operations transparent. reach of programmes through a cadre of skilled volunteers. The fully digital PACS in the model cooperative village will serve as an example of effective governance. A successfully functioning PACS will be the 8 Raising rural residents’ awareness key to the cooperative village programme. of government initiatives. The government’s plan to decentralize storage capacity in the budget for Model Village Concept this year will allow PACS to set up cutting-edge infrastructure in the shape of fully-stocked warehouses. This will enable farmers to stockpile their produce The concept of a model village is and profit from timely sales at better prices. This will also lessen both post- influenced by the vision of Mahatma harvest losses and reduce the exploitation of farmers by middlemen. Gandhi. On October 21, 2020, the “Integrated Adarsh Krishi Gram As per the recent MoU signed by the Ministry of Cooperation, Ministry of Yojana” was launched in Uttarakhand. Electronics & IT, NABARD and CECE-Governance Services India Limited, PACS This programme primarily intends can now operate as Common Service Centres, under which more than 300 to develop the state’s villages in services would be accessible. Thus, PACS will produce numerous income- collaboration with NABARD, which generating options in model cooperative villages. This will serve as a focal is an essential step in the holistic point for the creation of jobs for the villagers. This covers services listed on development of the villages. It aims to the Sewa site, such as banking, insurance and Aadhaar. achieve several key outcomes, including access to all-weather roads, clean Through cooperatives, the government’s Vibrant Village Programme drinking water, continuous electricity aims to create a “one village, one product” system. It is crucial in this regard through solar and wind energy, mobile to organize skill-development programmes with the active involvement of and internet connectivity, and the women and youth to achieve the larger objective of the programme. development of tourist attractions. The Model Cooperative Village is set to become a hub for technological The Union Cabinet has approved the advancement, equipped with all the necessary amenities. As individuals Central government’s “Vibrant Villages witness the success of established cooperative communities, they are likely Programme”, with a budget of ₹4,800 to become more interested in the concept of collaboration. The creation of crore for 2022–2023 to 2025–2026. The these villages will be a significant step towards improving the perception of scheme’s main goal is to improve the the cooperative sector. quality of life for those living in border villages along the country’s northern development in the border regions. connectivity, tourism attractions, etc. border through comprehensive The programme’s objectives The Model Cooperative Village development. include empowering young people Programme’s execution requires The plan aims to fund the and women via skill development and NABARD to play a significant role. With development of necessary entrepreneurship, as well as promoting the expansion of numerous government infrastructure and generate job local traditional knowledge and cultural and NABARD activities, the current opportunities in 19 districts and 46 heritage. In this, community-based Village Development Programme of border blocks located in four states and organizations, cooperatives, self-help NABARD has a focus on the integrated one Union Territory along the northern groups, and NGOs, among others, are and comprehensive development of border. This will support the growth developing sustainable eco-agribusiness villages. It is clear that the government’s of population and promote inclusive based on the concept of “one village, recent initiatives to establish PACS in one product”. The outcomes of these undeveloped villages and panchayats are -all-weather roads, drinkable will have a primary focus on the Model water, 24-hour electricity, solar and Cooperative Village Programme.¿¿¿ wind energy, mobile and internet Director, Publications/PR, NCUI July 2023 t Sahakar Jagran 27
Success Story Geeta’s Cowrie Jewellery Dazzles at the NIFT Fashion Show ª Increased confidence after training from NCUI Incubation Centre. ª Cowrie jewellery got selected for the fashion show of NIFT’s Rouge Fashion Society. Sahakar Jagran Team programme at NCUI’s Incubation products and get valuable feedback Centre and gained the confidence to G eeta Sharma, start her own venture and improve her from the visitors. The appreciation who took training skills. Among the various vocational from the first trades taught at the training camp, she got there boosted her confidence batch of NCUI’s Geeta was most attracted to the art of artificial jewellery-making. She manifold. She then participated in the began online research and market surveys to explore different materials “Laghu Udyog Mela” organized by the for jewellery making and develop her Incubation Centre, has created a own designs. Resident Welfare Association (RWA), storm in the fashion world with Found her identity by making Gulmohar Park, and many other ornaments out of Corn and Shells handmade jewellery. Her cowrie With time, Geeta started making exhibitions organized locally. corn jewellery, earrings out of shells jewellery was included in buttons, shells etc. The training she Geeta also put up a stall at received at NCUI’s Incubation Centre the fashion show organized by the helped her in improving presentation the national-level Craft Bazaar and marketing skills. Geeta now Rouge Fashion Society of the National began participating in exhibitions organized by NIFT, Delhi. She got a to showcase her products. She Institute of Fashion Technology soon participated in the week-long pleasant surprise when her cowrie NCUI Haat Cooperative Fair held (NIFT). Geeta also got a chance to in November 2022 which provided shell jewellery was selected for the her with a platform to exhibit her make an appearance at the event fashion show of NIFT’s Rouge Fashion with the participant who portrayed Society at the Bazaar. This aided in her jewellery. Getting the opportunity promoting her work. She also got a to showcase her jewellery on such chance to make an appearance with a huge platform boosted Geeta’s the participant who portrayed her confidence and her penchant for jewellery. entrepreneurship increased manifold. Geeta says she is deeply grateful Geeta was struggling to make a to NCUI for coming out with a career in textile design but didn’t novel Incubation Centre project have sufficient knowledge about the to support women and youth with right way of product packaging and entrepreneurship development presentation. She joined the training interventions. ¿¿¿ 28 Sahakar Jagran t July 2023
Reforms Slew of Tax Reforms to strengthen Cooperative Movement Sahakar Jagran Team Cooperatives will continue to Income Tax Reforms for W ith an aim to get exemption from income tax Cooperative Societies strengthen the The Supreme Court, while The reforms, ranging from dismissing the appeal of the lowering tax rates to a reduction cooperative Principal Commissioner Income in surcharge to several other Tax, Mumbai, held that Affiliated relief measures, are aimed at movement in Credit Societies are not banks. providing a conducive tax regime These Societies are exempted. for beneficiaries as well as the country, the government has participants of the cooperative carried out by cooperative societies sector. The Union Budget 2023- announced a slew of tax reforms for under section 269ST of the Income Tax 24 has proposed a tax rate of 15% Act. The budget has also announced an as against the existing tax rate of the sector to put into action the policy increase in the limit of cash deposits up to 30% with a surcharge for and cash loans by PACS and Primary new cooperatives starting of Prime Minister Narendra Modi- Cooperative Agriculture and Rural manufacturing operations by Development Banks (PCARDBS) from March 31, 2024. The surcharge led government that cooperatives ₹20,000 to ₹2 lakh per member. on cooperative societies with income between ₹1 crore and should be treated at par with all other Besides, it proposes to increase the ₹10 crore has been reduced from cash withdrawal limit of cooperative 12% to 7%, while the minimum economic entities. societies from ₹1 crore to ₹3 crore per alternate tax rate for year without deducting tax at source. cooperatives has been reduced The reforms, ranging from lowering from 18.5% to 15%. A Among other measures aimed clarification has also been issued tax rates to a reduction in surcharge to at giving a boost to ‘‘Sahakar Se to remove difficulties in cash Samriddhi’’ mantra of the Modi transactions carried out by several other relief measures, are aimed government, sugar cooperatives have cooperative societies under been provided an opportunity to claim section 269ST of the Income Tax at providing a conducive tax regime for payments made to sugarcane farmers Act. The budget has also for the period prior to the assessment announced an increase in the beneficiaries as well as participants of year 2016-17 as an expenditure. This is limit of cash deposits and cash expected to provide them with a relief loans by PACS and Primary the cooperative sector. of almost ₹10,000 crore. Co-operative Agriculture and Rural Development Banks The Union Budget 2023-24 has (PCARDBS) from ₹20,000 to ₹2 lakh per member. ¿¿¿ proposed a tax rate of 15% as against the existing tax rate of up to 30% with a surcharge for new cooperatives starting manufacturing operations by March 31, 2024. The surcharge on cooperative societies with income between ₹1 crore and ₹10 crore has been reduced from 12% to 7%, while the minimum alternate tax rate for cooperatives has been reduced from 18.5% to 15%. A clarification has also been issued to remove difficulties in cash transactions July 2023 t Sahakar Jagran 29
Guest Column Educate, Engage, Empower: The Path to Cooperative Member Excellence Yashwant Dongre M embers have an education at the district level. such as ownership seminars, membership important role in In spite of all these institutions, education seminars, livelihood skills any cooperative education, credit operations, financial organization. They are no provisions have been made for the education and many other programmes education of cooperative members are organised specifically for members involved in a number of important functions in general. The curriculum in all these to make them aware of the important institutions is prepared keeping in mind activities of the cooperatives. The Spain- such as governance of an organisation, the general public, youth and students, and based Mondragon Cooperative, considered not the cooperative members. So, very few Europe’s largest network of cooperatives, and financially contributing to the growth members get exposure to any technical organises small group discussions to knowledge and skill training. educate and encourage members to of the organization. For smooth functioning participate in cooperative matters. The Across the world, a variety of innovative approaches adopted in different countries of cooperative organizations, a number approaches are followed by cooperatives to educate cooperative members indicate for member education. ‘New member that we need to adopt such a model for of partnerships are forged with the induction’ programmes are conducted cooperative member education that in cooperative organisations in many is accessible to cooperative members cooperative member stakeholders. All this countries, including Japan and England, working at the grassroots level. Necessary to familiarise them with the functioning information should be easily available to is possible when the members are fully of cooperatives. These programmes are all the members so they can participate conducted in the same way as induction actively in the running of cooperatives with aware of their roles and responsibilities. and training programmes for new students sufficient knowledge and skills. taking admission to a school or university. The educational needs of cooperative The approach of cooperatives across Members’ education and training is the world towards member education members are well understood and ensured through regular Member Forum clearly indicates that cooperative education meetings organised by leading cooperatives needs to be taken seriously in India too, and appreciated in India. At the national level, in England. Necessary information is given a model should be developed to take it to to the members in these meetings, and the level of Primary Cooperative Societies the cooperative educational programmes discussions are also held to solve local issues (PACS). A separate fund should be created and problems. According to a study in the for cooperative education. As much as are organized by the National Council for United States, even though cooperatives 2% of the dividend of the cooperative adopt a variety of methods for their organisations should be spent only on Cooperative Education (NCCE) and, at the members’ education, in-house education is the education of members. It should also considered the most effective medium. The be ensured that all the organisational state level, through federations and unions. methods of educating the members may members meet twice or thrice in a year vary, but the materials published by the for entertainment events involving spouses However, in proportion to the number of cooperative staff, cooperative council and and children. ¿¿¿ cooperative organisations are considered cooperative members in the country, the to be the best and are most widely used. (VC, Chanakya University, Bangalore) institutional arrangements for cooperative In the Philippines, a variety of activities education are not adequate. Apart from NCCE, there are other institutional arrangements for cooperative education. NCCT (National Council for Cooperative Training) and VAMNICOM (Vaikunth Mehta National Institute of Cooperative Management) are imparting education in cooperatives at the national level. Cooperative education is being imparted at the regional level through RICMS (Regional Institute of Cooperative Management) and at the state level through ICM (Institute of Cooperative Management). Similarly, JTCs (Junior Training Centres) impart cooperative 30 Sahakar Jagran t July 2023
Union Minister for Home and Cooperation The state-of-the-art mobile ATM of the District Shri Amit Shah attended Mangal Aarti at Jagannath Cooperative Bank was inaugurated on the campus Temple in Ahmedabad on the auspicious occasion of after the Advocate Samman ceremony in Varanasi. Jagannath Rath Yatra. Shri Shah said that Shri Jagannath Cooperative sector banks are also actively participating Rath Yatra is a divine gathering of faith and devotion. in the Digital India mission of the Modi government. Around 41 women cooperators from Looms of Ladakh NCUI’s Coop Education Field Project, Vijayawada, attended the three-day LDP of NCCE (NCUI). The recently organized a month-long Skill Training Program participants had detailed discussions on various issues on tailoring for 30 SHG women at Tiruvuru. The skill linked with agriculture, packaging and marketing of their development program’s chief guest, Chandrashekar farm produce. The women cooperators from Ladakh met Azad, Sr. Manager DCCB, took a session on the utility of NCUI President, Dileep Sanghani. value-added products &and income-generating activities in the cooperative sector. NCUI Incubation Center organized Yoga Workshop on A workshop on natural dyeing was organized by the occasion of International Day of Yoga. Through the NCUI Incubation Centre. The workshop generated workshop, women took inspiration to adopt yoga in their consciousness among women about how household personal life. They also learned how yoga incorporates waste can result in beautiful swirls and gradients such values through the different asanas as the beauty of designs on fabrics. With this, women understood the self-expression, patience, teamwork and self-confidence. importance of a sustainable lifestyle.
Primary Agricultural Credit Societies (PACS) are an important pillar of the rural economy. The food grain storage scheme will provide food security to the country and crores of farmers associated with cooperatives will be benefited. With this plan, PACS can function as grain procurement centres as well as warehouses, fair price shops (FPS) and custom hiring centres (CHCs). Shri Amit Shah, Union Minister for Home and Cooperation NCUI Haat has provided a new interface between NCUI and the lesser-known cooperatives by providing a common exhibition-cum-sale platform. Supporting many flagship programs and expanding its reach pan India, it has created an enabling environment for “Sahakar se Samriddhi”. Published by Sanjay Kumar Verma for the National Cooperative Union of India, New Delhi and printed at NCUI Printing Press, B-81, Sector-80, Noida (Uttar Pradesh). Editor: Sanjay Kumar Verma Postal Registration No DL-SW-01/4215/2023-24 Published on 22.6.2023 Applied for Registration/ Exempted for 3 months NATIONAL COOPERATIVE UNION OF INDIA
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