Will the National Cooperative Policy Drive the Revitalisation of Cooperatives?

Centre–State Synergy: The Key to Revitalising Cooperatives

Cooperatives have historically been the backbone of India’s rural economy, empowering farmers, artisans, workers, women, and weaker sections through collective strength. However, in recent decades, the sector has faced challenges of inefficiency, weak governance, resource constraints, and limited market integration. Against this backdrop, the Ministry of Cooperation (MoC), Government of India, has taken bold steps to rejuvenate the cooperative movement by formulating the National Cooperative Policy (NCP)—a landmark initiative aimed at redefining the role of cooperatives in a rapidly transforming economy.

The Promise of the National Cooperative Policy

The forthcoming National Cooperative Policy seeks to infuse professionalism, transparency, and inclusivity into cooperative functioning. It emphasises:

• Good governance and accountability mechanisms.
• Enhanced financial access through modernised cooperative credit structures.
• Integration of technology and digital platforms to improve efficiency.
• Diversification into emerging areas such as food processing, renewable energy, logistics, and e-commerce.
• Stronger member participation and gender inclusion.

By setting these benchmarks, the policy intends to position cooperatives as engines of equitable growth that can complement private and public sector initiatives, while retaining their democratic character.

The Crucial Role of State Governments

While the MoC provides the national vision and policy direction, State Governments hold the key to effective implementation. Since cooperatives are a state subject under the Constitution, state-level laws, regulatory mechanisms, and institutional support will determine the real impact of the National Cooperative Policy.

The states’ role includes:

• Amending cooperative laws to align with the national framework.
• Empowering Registrar of Cooperative Societies (RCS) offices to ensure oversight without stifling autonomy.
• Supporting professional training, capacity building, and leadership development for cooperative employees and members.
• Facilitating credit linkages and market support through state federations.
• Ensuring inclusion of women, youth, and marginalised communities in cooperative institutions.

This Centre–State synergy is critical to prevent duplication, resolve jurisdictional conflicts, and create a seamless ecosystem for cooperative growth.

Revitalising Through Reforms and Innovation

The cooperative sector has immense potential to contribute to national priorities such as Doubling Farmers’ Income, Atmanirbhar Bharat, Digital India, and Sustainable Development Goals (SDGs). Dairy cooperatives like Amul, successful Primary Agriculture Cooperative Societies (PACS), and urban credit cooperatives provide living examples of what collective action can achieve when backed by supportive policies.

The National Cooperative Policy envisions replicating these successes across sectors. With modern governance tools such as social audits, IT-enabled monitoring, and concurrent evaluation, cooperatives can evolve into efficient, member-centric organisations. Furthermore, the establishment of a National Cooperative University and training academies promises to create a cadre of skilled professionals to manage the sector.

A Shared Responsibility

The revitalisation of cooperatives cannot be achieved by the Centre alone. MoC, GoI, and State Governments must work in tandem, engaging cooperative federations, NGOs, and grassroots members in the process. Policy frameworks must be coupled with capacity building, financial innovation, and market integration to ensure that cooperatives remain competitive in a globalised economy.

Conclusion

The National Cooperative Policy holds transformative potential to revitalise the cooperative movement. Yet, its success will rest heavily on the active participation of State Governments in aligning laws, empowering institutions, and supporting grassroots-level initiatives. With the Ministry of Cooperation providing vision and leadership, and states ensuring contextual implementation, the cooperative sector can once again emerge as a pillar of inclusive and sustainable growth in India’s rural economy.