The Economic Survey for 2024-25 was tabled by Finance Minister Nirmala Sitharaman in Parliament on Friday, highlighting the crucial role of cooperatives in India.
Cooperative societies play a vital role across multiple sectors, including agriculture, credit and banking, housing, and women’s welfare.
These societies are instrumental in promoting financial inclusion, particularly by extending credit to farmers and small entrepreneurs who often face challenges in accessing conventional banking services.
To strengthen the cooperative sector, the Indian government has implemented various strategic initiatives. These include introducing Model Bye-Laws for Primary Agricultural Credit Societies (PACS) to provide a structured framework for their operations.
Additionally, the government has prioritized the computerization of PACS to enhance efficiency and transparency. There is also an ongoing effort to establish new multipurpose PACS, as well as dedicated dairy and fishery cooperatives to meet diverse community needs.
Another key focus is transforming PACS into Common Service Centres (CSCs), which aim to provide services beyond financial assistance.
Other noteworthy measures to enhance the cooperative landscape include setting up retail petrol and diesel outlets and installing micro-ATMs within cooperative societies to improve access to banking services.
Moreover, the issuance of RuPay Kisan Credit Cards specifically for dairy cooperatives is expected to strengthen their financial capabilities and benefit their members.
The achievements of these initiatives have been significant. Over 9,000 new PACS, dairy, and fishery cooperatives have been established in underserved panchayats, with support from various federations. As part of the government’s push for greater accessibility, 240 PACS have applied to operate retail petrol and diesel outlets, with 39 already selected.
Additionally, 35,293 PACS have been transformed into Pradhan Mantri Kisan Samriddhi Kendras (PMKSK), which provide essential fertilizers and related services to farmers, directly contributing to agricultural productivity. Furthermore, 1,723 micro-ATMs have been distributed, enhancing doorstep financial services and improving accessibility for rural populations.
Improving price discovery and market efficiency is another critical priority. Strengthening market infrastructure is essential to achieving this goal. This can be facilitated by effectively utilizing e-NAM, an online platform that provides farmers access to broader markets.
Additionally, supporting the establishment and operational capabilities of Farmer Producer Organizations (FPOs) and enabling cooperatives to play a more active role in agricultural markets will help foster a more inclusive and efficient market environment.
