The power of co-operative sector

For Printing Download Epaper from files section from bottom of this page

The power of co-operative sector

When Amit Shaha’s name was declared as first central co-operation minister of the country, there were many eyebrows raised especially in Maharashtra. Everybody saw this as a political move by Modi government to marginalize NCP and Congress, who control most of the cooperative movement in the state. Actually, Modi has a broad intention to establish a separate ministry for co-operative movement. In Maharashtra, great people like Dhananjay Gadgil, Yashwant Rao Chavan, Vitthal Rao Vikhe Patil pioneered cooperative movement. The first co-operative sugar factory was started by Vikhe Patil and the money was collected for the factory from people just up to five rupees. The co-operative movement changed the scenario in rural Maharashtra. Rural people were so poor that, they were not able to see a note of five rupees frequently. With the arrival of the movement, they were rolling in the money. Rural economy saw a sea change and houses in the villages were also seen flooded with imported vehicles, TV sets, fridges, modern furniture and much more. All the change was due to the money brought by sugan cane. Later, leaders of political parties crushed the movement and now there are hardly any sugar factories or spinning mill in working condition. Leaders looted the co-operative movement in many ways. In the backdrop of such a situation, Amit Shaha has taken over the charge of first minister of the department. Cooperatives — as an organic idea and an organisational platform — are relevant, if re-imagined and implemented skilfully. Carving out a ministry for cooperation must be understood in the context of the sector’s immense transformative power that has been unevenly realized so far. The objective of the new ministry is to strive towards creating a legal, administrative and policy framework, facilitating the “ease of doing business” for cooperatives and helping the emergence of “multistate cooperative societies”. The emphasis is on transforming cooperatives from small entities to big enterprises, facilitated and sustained by enabling businesses to address the problem of entry and growth barriers. There are immense malpractices in the movement, but this does not mean the movement should be completely erased out. It should be in fact strengthened more. At the local level, cooperative societies should continue to cater to the needs of their members across segments of the primary sector. At the national level, they must emerge as organisations capable of competing with the behemoths of the private sector. At local level, the rural farmers and cane growers need the movement so that they can once again come out from the poverty. The political leaders who have murdered co-operative movement have in fact closed the doors of upliftment of farmers. This should not be allowed to happen. Successful business models exist in at least two sectors — dairy and fertilisers. Organic leadership, the involvement of members, techno-managerial efficiency, economies of scale, product diversification, culture of innovation, commitment to customers and sustained brand promotion are factors that account for their success. These practices can be replicated for other sectors as well. Dairy sector was growing in the state, but Maharashtra leaders hatched a conspiracy in connivance with private milk producers and co-operative movement in dairy was gradually nipped in the bud.  All the politicians of Congress(Because NCP was not born then) are responsible for finishing a good developing dairy movement. The dairies in every district were forced to close down and the path of progress of farmers was blocked.  Shaha has to create once again all this afresh. There will also be a need to promote the brand of cooperatives through upgradation and value addition to the quality of products and services delivered by them. This will entail expanding production, operation, distribution and scale of the economy. If Shaha can rejuvenate the movement, it may be proved once again game changer for the country.