Strengthening India’s Cooperative Movement
The Indian government has taken significant steps to enhance the cooperative movement in the country. On February 15, 2023, it approved a comprehensive plan aimed at strengthening cooperative societies and extending their reach to grassroots levels. This initiative focuses on establishing two lakh Multipurpose Primary Agricultural Cooperative Societies (M-PACS), as well as Dairy and Fishery Cooperative Societies. The goal is to cover all Panchayats and villages across India within the next five years. This ambitious plan will utilize various existing government schemes, including the Dairy Infrastructure Development Fund (DIDF), the National Programme for Dairy Development (NPDD), and the PM Matsya Sampada Yojana (PMMSY). The National Bank for Agricultural and Rural Development (NABARD), along with other key organizations, will support this initiative.
Expanding Cooperative Societies Across India
The government’s plan aims to create a robust network of cooperative societies that can serve the needs of rural communities. By establishing two lakh new M-PACS, the government seeks to empower farmers and fishermen, providing them with better access to resources and markets. This initiative is crucial for enhancing agricultural productivity and ensuring food security in the country.
The cooperative movement has a long history in India, playing a vital role in rural development. By focusing on grassroots participation, the government hopes to foster a sense of ownership among local communities. This approach will not only improve livelihoods but also promote sustainable practices in agriculture and fisheries.
The establishment of Dairy and Fishery Cooperative Societies will further diversify income sources for rural households. These societies will facilitate better management of resources and enhance the quality of products. The convergence of various government schemes will ensure that these cooperatives receive the necessary support and funding to thrive.
Digitization of Primary Agricultural Credit Societies
In addition to expanding cooperative societies, the government is also focusing on the digitization of Primary Agricultural Credit Societies (PACS). This initiative aims to modernize these institutions through a comprehensive computerization project. With a financial outlay of ₹2,516 crore, the project will bring all functional PACS onto an Enterprise Resource Planning (ERP) based Common National Software.
This software will streamline operations and improve efficiency in PACS performance. By implementing a Common Accounting System (CAS) and a Management Information System (MIS), the government aims to enhance transparency and accountability within these societies. The digitization process will also facilitate better communication between PACS and financial institutions like NABARD.
As of November 21, 2024, proposals for the computerization of 67,930 PACS across 30 states and Union Territories have been sanctioned. The government has already released ₹699.89 crore as its share to the states and ₹165.92 crore to NABARD as the implementing agency. This progress indicates a strong commitment to modernizing the cooperative sector.
Training and Support for Cooperative Societies
To ensure the successful implementation of these initiatives, the government is providing extensive training and support to cooperative societies. Each PACS will receive approximately ₹3.91 lakhs to cover the costs of hardware, software, training, and the establishment of support systems. This financial assistance is crucial for enabling PACS to adapt to new technologies and improve their operations.
In the state of Gujarat alone, 5,754 PACS have been sanctioned for computerization. The government has trained 115 Master Trainers in the state to facilitate the training of other members. This capacity-building effort is essential for empowering local leaders and ensuring that the benefits of digitization reach all members of the cooperative societies.
The government’s commitment to strengthening the cooperative movement reflects its recognition of the sector’s potential to drive rural development. By investing in technology and training, the government aims to create a more resilient and efficient cooperative ecosystem that can better serve the needs of farmers and fishermen across India.
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