Why in the News?

Union Home Minister Amit Shah has unveiled a new national cooperative policy, replacing one in place for the past 23 years.

What’s in Today’s Article?

• National Cooperative Policy (Introduction, Need, Key Features, Model Cooperative Villages, Impact, etc.)

National Cooperative Policy 2025

• Union Home and Cooperation Minister Amit Shah launched the National Cooperative Policy 2025 in New Delhi, replacing the earlier framework introduced in 2002.
• The policy aims to strengthen the cooperative sector's institutional capacity, expand its reach into new areas, and align its role with India's broader development goals.
• Anchored in the vision of Sahkar se Samriddhi (Prosperity through Cooperation), the policy outlines a roadmap for the sector’s growth over the next 20 years, focusing on inclusivity, transparency, technological adoption, and village-level economic empowerment.

Political and Historical Context

• The National Cooperative Policy 2025 comes after a 23-year gap since the last policy was announced in 2002.
• The Union government’s decision to create a separate Ministry of Cooperation in 2021 signalled a renewed commitment to revitalising this sector.
• With over 8.4 lakh cooperative societies (and a target to increase this by 30%), the sector reaches over 31 crore people, especially in states like Maharashtra and Gujarat.
• The policy also seeks to expand this network into other states like Uttar Pradesh and Bihar, thereby decentralising political and economic benefits.

Key Features of the Policy

• The new policy is structured around six pillars:

• Strengthening foundational systems
• Promoting vibrancy in existing cooperatives
• Preparing for future challenges through digitalisation and innovation
• Enhancing inclusivity and outreach
• Expanding into emerging sectors
• Engaging youth and building capacity for future generations

• It aims to increase the sector’s contribution to GDP threefold by 2034, establish at least one cooperative society in every village, and bring 50 crore citizens into active cooperative participation.

Expanding into New Sectors

• Under the new policy, cooperatives will now be supported in non-traditional sectors, including:
  • Green energy
  • Tourism
  • Taxi services (Sahkar Taxi)
  • Insurance

• PACS (Primary Agricultural Credit Societies) are being enabled to undertake diversified activities like managing fuel outlets, LPG distribution, Jan Aushadhi Kendras, CSCs, and even implementing schemes such as Har Ghar Jal and PM Surya Ghar Yojana.
• A dedicated roadmap has been prepared for sector-specific cooperative development, particularly in rural India.

Model Cooperative Villages and Rural Integration

• A major highlight is the Model Cooperative Village Every tehsil will host five such villages, implemented in coordination with state cooperative banks and NABARD.
• These villages will be centres of excellence in cooperative-led development, integrating:

• Dairy
• Fishery
• Floriculture
• Agri-services
• Women and tribal participation (via White Revolution 2.0)

• The goal is to localise economic activity while fostering inclusive growth and community ownership.

Institutional Strengthening and Reforms

• To ensure efficiency and transparency, the policy mandates:

• Full computerisation of PACS operations
• Technology-driven governance for all types of cooperatives
• Cluster monitoring systems for institutional tracking
• Legal reviews every 10 years to keep policy aligned with evolving needs

• As of 2025, over 83 intervention points have been identified for reform, 58 implemented, three completed, and others underway.
• Additionally, a nationwide cooperative university (Tribhuvan Sahkari University) has been established for professional training and capacity building.

Economic Impact and Inclusive Vision

• The cooperative sector currently contributes significantly to India’s rural economy:

• 20% of the total agricultural credit
• 35% of fertiliser distribution
• Over 30% of sugar and 10% of milk production
• Over 21% of the fishing sector
• 13% of wheat and 20% of paddy procurement

• With these foundations, the policy envisions a member-centric model where even the smallest cooperative units become self-reliant and future-ready, contributing to employment generation, income stability, and social dignity.