Cooperatives have played a transformative role in fostering economic empowerment, social inclusion, and sustainable development across the world. Rooted in the principles of mutual aid and self-reliance, the cooperative movement has evolved over centuries, adapting to changing economic and social conditions. Today, cooperatives operate in diverse sectors, including agriculture, banking, consumer goods, healthcare, housing, and technology.
Evolution of Cooperatives
The origins of the cooperative movement can be traced back to the Rochdale Pioneers in England in 1844. This group of workers established the first successful cooperative society, laying down the Rochdale Principles of cooperation, which include voluntary membership, democratic control, economic participation, autonomy, education, and concern for the community.
In India, the cooperative movement began in the late 19th century to address challenges faced by farmers and artisans, particularly in accessing credit. The Co-operative Credit Societies Act, 1904, passed during British rule, marked the formal beginning of cooperatives in India. Post-independence, the All India Rural Credit Survey (1951) emphasized the role of cooperatives in rural credit delivery. The Green Revolution further highlighted their importance in agriculture and food security.
Today, India has over 8.5 lakh cooperative societies operating in various sectors, including agriculture, dairy, fisheries, credit, housing, and industry. Prominent cooperative organizations like Amul, IFFCO, KRIBHCO, and NAFED have set global benchmarks.
Advantages of Cooperatives
Cooperatives offer numerous economic and social benefits, making them a viable alternative to capitalist and state-controlled enterprises.
1. Economic Empowerment and Financial Inclusion
- Cooperatives provide credit and financial services to farmers, artisans, and small businesses, ensuring access to capital.
- They eliminate the exploitation of middlemen, helping members secure fair prices for their products.
2. Employment Generation
- Cooperatives employ over 280 million people globally, contributing significantly to rural employment.
- In India, Amul and IFFCO have created millions of direct and indirect jobs.
3. Democratic Control and Collective Decision-Making
- Unlike corporations, cooperatives follow a democratic governance model where each member has one vote, ensuring equal participation.
4. Sustainable and Community-Oriented Development
- Cooperatives prioritize local needs and reinvest profits into the community.
- They promote sustainable agricultural practices, renewable energy, and ethical trade.
5. Women Empowerment and Social Inclusion
- Cooperatives have played a crucial role in empowering women, particularly through self-help groups (SHGs) and dairy cooperatives.
- Organizations like Lijjat Papad showcase how cooperatives can uplift marginalized communities.
Constitutional Provisions Related to Cooperatives in India
The importance of cooperatives in India is recognized under the Constitution, ensuring their democratic functioning and legal protection.
1. 97th Constitutional Amendment (2011)
The 97th Amendment Act gave constitutional status to cooperative societies, adding:
✅ Article 19(1)(c) – Right to form cooperative societies as a fundamental right.
✅ Article 43B – States must promote cooperative societies as part of Directive Principles of State Policy (DPSP).
✅ Part IXB – Provides a framework for governance, elections, and autonomy of cooperatives.
2. State Laws on Cooperatives
- Cooperative societies fall under the State List (Entry 32, List II), allowing states to regulate them.
- Some states have their own cooperative laws, while others follow the Multi-State Co-operative Societies Act, 2002.
Ministry of Cooperation: Strengthening the Cooperative Movement
In 2021, the Government of India created the Ministry of Cooperation, recognizing the need for a dedicated authority to regulate and promote cooperatives. The ministry, led by Union Home Minister and Minister of Cooperation Amit Shah, focuses on:
✅ Strengthening the legal framework to ensure transparency and efficiency.
✅ Modernizing cooperatives through digitalization and financial reforms.
✅ Expanding cooperatives into new sectors, including organic farming, fisheries, and exports.
✅ Promoting women-led cooperatives and improving PACS (Primary Agricultural Credit Societies).
✅ Setting up a National Cooperative University to provide training and research in cooperative governance.
United Nations’ International Year of Cooperatives 2025
The United Nations (UN) has declared 2025 as the International Year of Cooperatives, recognizing the vital role of cooperatives in global economic development.
Why is 2025 Important for Cooperatives?
🌍 Global Recognition – The UN acknowledges cooperatives as key drivers of sustainable development.
🌾 Poverty Reduction – Cooperatives uplift farmers, small entrepreneurs, and marginalized communities.
💰 Financial Inclusion – They ensure access to credit and fair wages.
🤝 Social and Economic Resilience – Cooperatives promote community-based economic models that withstand global crises.
India’s Role in International Year of Cooperatives 2025
India has one of the world’s largest cooperative networks. The Global Cooperative Conference 2024, inaugurated by Prime Minister Narendra Modi, marked the official launch of the International Year of Cooperatives 2025.
PM Modi emphasized:
✅ Expansion of 2 lakh new PACS to cover every village.
✅ Introduction of a new National Cooperative Policy.
✅ Encouraging exports of Indian agricultural products through cooperatives.
Conclusion: The Future of Cooperatives
The cooperative movement has stood the test of time, evolving into a global force for economic democracy and social justice. With government support, legal protection, and technological advancements, cooperatives are set to play an even greater role in inclusive and sustainable development.
As the world gears up for the UN’s International Year of Cooperatives 2025, India’s cooperative model serves as an inspiration for nations worldwide, reinforcing the principle that cooperation is key to prosperity.
