India Hosts Global Conference of Cooperatives for the First Time

1. In November 2024, Prime Minister Narendra Modi inaugurated the Global Cooperative Conference 2024 at Bharat Mandapam in New Delhi.

• The theme of the conference:"Cooperatives Build Prosperity for All," aligns with the Indian Government’s vision of “Sahkar Se Samriddhi” (Prosperity through Cooperation).

2. India is hosting the Global Conference of the International Cooperative Alliance (ICA) for the first time in the 130-year history of the ICA.
3. PM Narendra Modi also launched the United Nations’ International Year of Cooperatives 2025 (IYC 2025), which will focus on the theme, “Cooperatives Build a Better World,” and released a commemorative postal stamp.

1. The stamp showcases a lotus, symbolizing peace, strength, resilience, and growth, reflecting the cooperative values of sustainability and community development.
2. The 5 petals of the lotus represent the 5 elements of nature (Panchatatva), highlighting cooperatives' commitment to environmental, social, and economic sustainability.
   • Panchatatva includes earth, water, fire, air, and space.
3. The design also incorporates sectors like agriculture, dairy, fisheries, consumer cooperatives, and housing, with a drone symbolizing the role of modern technology in agriculture.

Do You Know 2012 International Year of Cooperatives: The year 2012 was recognized as the International Year of Cooperatives (IYC), promoting the role of cooperatives in fostering economic and social development. This recognition aimed to highlight their contributions to sustainable development, job creation, and poverty alleviation. The theme for the year 2012 was "Cooperative Enterprises Build a Better World" Following the success of 2012 campaign The United Nations declared 2025 as the second International Year of Cooperatives. International Day of Cooperatives: The International Day of Cooperatives is observed annually on the first Saturday of July, a tradition that dates back to 1923. 2025 International Day of Cooperatives: The 2025 edition of the International Cooperative Day will be celebrated on July 5th. 2024 International Day of Cooperative: The 102nd edition of the International Day Cooperative was celebrated on July 6, 2024, under the theme "Cooperatives Build a Better Future for All".

What are Cooperatives?

1. A cooperative (or co-op) is an organization or business that is owned and operated by a group of individuals who share a common interest, goal, or need. 
2. These individuals, known as members, participate in the cooperative’s activities and decision-making process, typically on a one-member, one-vote basis, regardless of the amount of capital or resources each member contributes. 
3. The main purpose of a cooperative is to meet the economic, social, or cultural needs of its members, rather than to maximize profits for external shareholders.
4. The UN SDGs recognize cooperatives as crucial drivers of sustainable development, particularly in reducing inequality, promoting decent work, and alleviating poverty. 

Cooperatives in India Constitutional Provision: The 97th Constitutional Amendment, 2011, gave constitutional status and protection to cooperatives in India. Part IX B (Articles 243-ZH to 243-ZT) was added to the Indian Constitution, which deals with cooperative societies and their functioning. It made the right to form cooperative societies a fundamental right under Article 19 (1). A new Directive Principle of State Policy (DPSP), Article 43-B, was introduced to promote cooperative societies. Legal Framework: Cooperatives are governed by the Cooperative Societies Act, which is implemented at both the state and national levels. The Multi-State Cooperative Societies Act (2002): This law regulates cooperatives that operate in more than one state. The National Cooperative Policy (2002): Aimed at creating an enabling environment for the cooperative movement, it focuses on improving governance, member participation, and financial sustainability. Promotion of Cooperatives: The Ministry of Cooperation was constituted in 2021 to strengthen the cooperative movement and deepen its reach to the grassroots. The Union government plans to establish a cooperative university and also plans to unveil a new cooperative policy. Contribution of Cooperatives: India has over 8 lakh cooperatives, and 98% of rural areas are covered by them. About 300 million people are associated with cooperatives in India.

Benefits of Cooperatives:

1. Democratic Control: Members have a voice in decision-making.
2. Economic Participation: Profits are distributed based on usage or contribution, not capital invested.
3. Community Focus: Co-ops often aim to benefit local communities by keeping resources and profits within the group.
4. Better Services/Prices: By pooling resources, cooperatives often offer better services or prices than for-profit businesses.

Types of Cooperatives in India:

1. Agricultural Cooperatives:
   1. Dairy Cooperatives: Focus on the collective production, processing, and marketing of dairy products (e.g., Amul).
   2. Farmers’ Cooperatives: Provide services like access to seeds, fertilizers, and agricultural equipment, and help with marketing and processing crops.
   3. Fishermen Cooperatives: Support fishermen in managing resources and marketing their catch collectively.
2. Consumer Cooperatives: These cooperatives are formed to provide goods and services to members at reasonable prices, reducing reliance on middlemen. Examples include consumer stores and fair-price shops.
3. Worker Cooperatives: In these cooperatives, workers own and manage the business, sharing profits and decision-making. Examples include small-scale manufacturing cooperatives or artisan co-ops.
4. Credit Cooperatives: Cooperative Banks and Credit Societies offer financial services, such as savings accounts, loans, and credit, to members, particularly in rural and underserved areas.
5. Housing Cooperatives: These cooperatives help members collectively build or manage housing projects, providing affordable living spaces, especially in urban areas.

Success Stories of Cooperatives in India: Amul (Gujarat): Amul, a dairy cooperative, has been one of India’s most successful cooperatives, transforming the dairy sector by empowering millions of small farmers and bringing India to the forefront of the global dairy market. Irrigation Cooperatives in Maharashtra: Water-user associations and cooperatives in Maharashtra have successfully managed water resources for irrigation purposes, helping farmers achieve better yields. Kerala’s Co-operative Movement: Kerala has one of the most successful cooperative movements in India, with strong cooperatives in sectors like banking, farming, consumer goods, and housing.

Challenges Faced:

1. Weak Governance: They are issues of poor management, corruption, and political interference, leading to inefficiency and lack of transparency.
2. Limited Access to Credit: Many cooperatives struggle with access to financing, which hinders their ability to expand or improve their operations.
3. Competition from Private Sector: Cooperatives often face stiff competition from large private enterprises and multinational corporations, especially in sectors like retail and agriculture.
4. Technological Gaps: Many cooperatives, especially in rural areas, lack access to modern technology or are slow to adopt new systems that could improve efficiency.

Way Forward

1. Cooperatives in India have proven to be an essential tool for economic empowerment, especially for marginalized groups, and contribute significantly to rural development. 
2. However, for cooperatives to thrive in the modern economy, governance reforms, better access to technology and credit, and increased member engagement are necessary. 
3. With the right support and reforms, cooperatives can continue to contribute to inclusive growth and social development in India.

About the International Cooperative Alliance (ICA) ICA is a non-profit international association that unites, represents, and serves cooperatives worldwide. It was founded in 1895, making it one of the oldest non-governmental organizations in existence. It is also one of the largest NGOs, with 1 billion cooperative members globally, representing diverse cooperative sectors. The ICA serves as the apex body for cooperatives, which number around 3 million worldwide. The ICA operates through a central office in Brussels, Belgium, with 4 regional offices: Africa, Americas, Asia-Pacific, and Europe.

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