Recently, a dialogue on systemic issues of poor electricity supply faced by the farmers in Rajasthan has recommended the establishment of a farmers’ cooperative-based distribution model with the regulatory viability under the Electricity Act 2003.

• The dialogue was organized by the Jaipur-based Centre for Energy, Environment and People (CEEP) as part of the ‘Vidyut Samvad’ series here earlier this week.

About Cooperative Society

• Definition: A cooperative society is a voluntary association of individuals with shared needs who come together to pursue common economic interests.
• Objective: The primary goal of any cooperative is to offer assistance to its members, particularly prioritizing the welfare of the underprivileged segments of society, through the principles of self-help and mutual aid.
• Operational Approach: By establishing cooperatives, individuals unite as a collective, combining their individual resources, optimizing their utilization, and deriving mutual benefits.
  • In a cooperative society, individuals can join voluntarily and are also at liberty to exit, although they are unable to transfer their shares.
• Types of Cooperatives in India: Consumer Cooperative Societies, Producer Cooperative Societies, Cooperative Credit Societies, Cooperative Farming Societies, Housing Cooperative Societies, and Marketing Cooperative Societies.
  • Among the 300 largest cooperative societies globally, India’s Amul, IFFCO, and KRIBHCO are featured.

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Steps taken to strengthen the cooperative movement in India

• Ministry of Cooperation: Established with a distinct administrative, legal, and policy structure aimed at enhancing the cooperative movement.
• The Banking Regulation (Amendment) Act, 2020: Empowers the RBI to replace the boards of Cooperative banks and permits Cooperative banks to raise capital through public issues or private placements of equity or preference shares.
• The National Agricultural Co-operative Marketing Federation (NAFED): Aids Marketing Cooperatives in the States to enhance their marketing operations and improve services to their members.
• The National Co-operative Development Corporation (NCDC): Established in 1963, it offers assistance in the form of loans and subsidies for marketing, processing, storage, and share capital practices in cooperative sugar, spinning, and weaving mills.
• Cancellation of the 97th Constitutional Amendment Act, 2011 by the Supreme Court: This amendment aimed to protect cooperatives by amending Article 19(1)(c) and inserting Article 43B and Part IXB. However, the Court ruled that Part IXB of the Constitution applies solely to Multi-State cooperative societies within states and Union Territories.
  • Part IXB of the Constitution outlined regulations for operating cooperative societies.

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