Cooperatives have proven to be a successful model for socio-economic development across the world. In India, the cooperative movement has played a significant role in empowering marginalized communities and facilitating their participation in the mainstream economy. The North Eastern Region (NER) of India, with its rich natural resources and diverse communities, has immense potential for cooperative development.
However, the region is yet to fully harness the benefits of cooperatives due to various challenges such as lack of institutional support and awareness among the masses. In this context, the Ministry of Cooperation has taken various initiatives to promote cooperative development in the NER. This includes setting up of multi-state cooperative societies, promoting dairy and fishery cooperatives, and encouraging the formation of handloom and bamboo cooperatives. Through institutional development, capacity building, and training, the aim is to create a robust cooperative ecosystem that can support and enhance the livelihoods of people in the region.
Institutionalizing the cooperative ecosystem could help overcome the challenges faced by the North East region of India. Recently, the Ministry of Cooperation has taken various steps to strengthen the cooperative ecosystem, including the computerization of 63,000 PACS, amendments in Model byelaws for primary agricultural credit society (PACS) to enable them to undertake over 100 business activities, the creation of PACS as Common Service Centres (CSC), the establishment of a National Cooperative Database, and the formulation of a new Cooperative Policy to create an enabling ecosystem for the vision of “Sahakar-se-Samriddhi”.
The Multi-State Cooperative Societies Act has been amended to enhance governance, transparency, accountability, and the electoral process. The NCDC has launched various schemes for cooperatives in different sectors, such as “Swayamshakti Sahkar” for SHG, “Deerghavadhi Krishak Sahkar” for long-term agricultural credit, “Dairy Sahkar” for dairy, and “Neel Sahkar” for fisheries. The total financial assistance disbursed in FY 2021-22 was Rs 34,221 crore. Cooperatives are now allowed to register as a “buyer” on GeM, which allows them to procure goods and services from nearly 40 lakh vendors. Additionally, the minimum alternate tax has been reduced, the tax rate for new cooperatives has been lowered, and limits on deposits, loans, and TDS have been increased.
In the NER, there are 1,02,559 PACS, out of which 72,548 are considered viable and can serve as diverse business entities and common service centers to cater to the stakeholders’ credit, business, and employment needs. Additionally, there are only 1,525 Multi-State Cooperative Societies in the region, which have vast potential to be increased and make the cooperative ecosystem more beneficial to the stakeholders. So far, the National Cooperative Development Corporation (NCDC) has disbursed Rs 3422107.78 lakh to North East India for the development of agriculture, industry, and services sectors through the cooperative ecosystem.
In 2019-20, milk production in the North Eastern Region increased by 4.9% compared to the previous year. However, the per capita availability of milk in the region is still below the recommended level by the ICMR. Currently, the local production and major dairy cooperatives and private sectors of the country together meet the demand for milk and milk products in the North Eastern Region. To overcome these challenges, the Ministry of Cooperation has taken new measures, such as the formation of at least one dairy cooperative in each village panchayat.
The fisheries industry in Northeast, which contributes 3.03% of India’s total production, provides employment to 25 million people. Despite its potential, the fisheries ecosystem in the region remains largely untapped. The Ministry of Cooperation has initiated steps to establish fish cooperatives in the area.
The horticulture sector in the North East region has great potential for both vertical and horizontal growth. Currently, horticultural crops occupy only 18.60% of the cultivated area. Therefore, the formation of cooperatives in horticultural production, marketing, logistics, and value chain activities could be beneficial in terms of increasing efficiency, aggregating work, and promoting socio-economic well-being for stakeholders.
The Government of India’s Cabinet Committee on Economic Affairs has approved the establishment of three cooperative societies under the Multi State Cooperative Societies (MSCS) Act, 2002. These societies will focus on exports, organic farming, and quality seeds, providing benefits to farmers. The states in the North East Region can follow this model and form their own export, seed, and organic societies based on their performance in the given parameters. For instance, Sikkim can form societies for organic and export activities, while Arunachal Pradesh and Assam can establish seed-based societies. To tackle the challenges faced by the handloom industry in Northeast, capacity building and training cooperatives can be established to provide support at every stage, from production to marketing of the handloom products. The sericulture industry and handloom industry are two key components of the NER economies, and the establishment of effective cooperatives in these sectors will contribute to income generation activities at the grassroots level.
Bamboo is an integral part of the lifestyle, economy, and culture of the North East region. The livelihoods of millions of people are dependent on the bamboo industry, from small-scale entrepreneurs to large commercial businesses. To support and promote the bamboo ecosystem, cooperative societies focused on bamboo production, marketing, and innovation could play a crucial role. The formation of bamboo cooperatives could revitalize the socio-economic fabric of the NER.
The cooperative ecosystem can enable the stakeholders of NER to create visionary benefits for themselves. If the Ministry of Cooperation’s amendments for cooperatives are channeled effectively, it can lead to social, economic, political, and global stability of the region. Through cooperative handholding steps, the region can become a leading player in Southeast Asia in all domains.
Dr Hema Yadav is Director, Vaikunth Mehta National Institute of Cooperative Management, Pune. Dr Mahesh Kadam is Associate Professor, VAMNICOM, Pune, and Dr Pravin Jadhav is Assistant Professor, IITRAM, Ahmedabad.
