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NGOs vs. GoI: The Conflicts and Scrutinies

National Cooperation Policy (NCP), 2025

Prelims Only | Governance | Mains Paper 2: NGO, SHG & Civil Society

Why in the News?

The National Cooperation Policy (NCP) 2025 recently unveiled by Union Home and Cooperation Minister Amit Shah has drawn criticisms from SKM (Samyukt Kisan Morcha).

Also in news:

  • The Union Cabinet has also approved a â‚ą2,000 crore Central Sector Scheme to aid National Cooperative Development Corporation (NCDC) from 2025–26 to 2028–29.
  • NCDC was established in 1963 as a statutory Corporation under Ministry of Agriculture & Farmers Welfare (now functions under the Ministry of Cooperation since 2021).

 

About Cooperatives in India:

  • What is it: A cooperative is a voluntary, autonomous association of individuals who unite to meet common economic, social, or cultural needs through a jointly-owned and democratically-controlled enterprise.
  • Key Principles:
    • One member, one vote: Equal say in governance, regardless of financial contribution.
    • Based on collective benefit, democratic control, and mutual aid.
  • Historical Evolution:
    • 1904 & 1912: Cooperative Acts laid the foundation for the cooperative movement in India.
    • Post-independence: Emphasis on rural credit, dairy, and agriculture cooperatives (e.g., Amul).
    • Key Institutions: NABARD (National Bank for Agriculture and Rural Development), NCDC (National Cooperative Development Corporation).
  • Constitutional & Legal Backing:
    • 97th Constitutional Amendment (2011):
      • Article 19(1)(c): Right to form cooperative societies.
      • Article 43B: Directive Principle promoting cooperative societies.
      • Part IXB (Articles 243ZH to 243ZT): Provides governance framework.
    • MSCS Act, 2002: Governs multi-state cooperatives (under Central Registrar).
    • State List (Entry 32): State legislatures regulate intra-state cooperatives.
  • Scale:
    • India has over 8.42 lakh cooperatives with 29 crore members (~27% of global total).
    • Leading states: Maharashtra, Gujarat, Telangana, MP, Karnataka.
    • Notable cooperatives: IFFCO, Amul — ranked among top 300 cooperatives globally.

National Cooperation Policy (NCP) 2025:

  • Launch: Introduced by Union Minister Amit Shah on July 24, 2025.
  • Vision: “Sahakar se Samriddhi” — promoting prosperity through cooperatives.
  • Objective:
    • Establish a comprehensive national framework for cooperative growth (2025–2045).
    • Replace the 2002 policy and drive inclusive development through grassroots cooperatives.
  • Key Features:
    • 2 lakh new Primary Agricultural Credit Societies (PACS) in 5 years
    • Scheme convergence: e.g., PM Matsya Sampada Yojana, NPDD
    • Inclusive focus: Women, Dalits, Adivasis, youth
    • Sector expansion: Into 25+ areas—dairy, fisheries, exports, technology
    • Education: First cooperative university—Tribhuvan Sahkari University
    • Export support: Through National Cooperative Exports Limited (NCEL)
    • Digital thrust: Emphasis on digitisation and platform integration

Issues with NCP, 2025:

  • Federalism Undermined
    • Entry 32: Cooperatives are a State Subject
    • SC Verdict (2021): Centre cannot regulate intra-state cooperatives
    • Criticism: Policy lacks ratification by half the states (Article 368(2))
  • Corporate Entry Fears
    • Emphasis on digital platforms may enable indirect corporatisation
    • Potential marginalisation of small farmers and FPOs
  • Weak Social Inclusion
    • Lacks focus on Minimum Support Price (MSP), surplus sharing
    • No robust support for producer cooperatives or fair wages
    • Inclusion of tribals, Dalits, women remains rhetorical
[UPSC 2021] With reference to ‘Urban Cooperative banks’ in India, consider the following statements:

1. They are supervised and regulated by local boards set up by the State Governments.

2. They can issue equity shares and preference shares.

3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

Which of the statements given above is/are correct?”

Options: (a) 1 only (b) 2 and 3 only* (c) 1 and 3 only (d) 1, 2, and 3

 

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