Sahkar se Samriddhi: A Strategic Guide to India's Cooperative Revolution for UPSC
Q. With reference to the cooperative sector in India, consider the following statements:
1. The United Nations has declared 2025 as the International Year of Cooperatives with the theme “Sahkar Se Samridhhi”.
2. The Tribhuvan Sahkari University is India's first national university dedicated to the cooperative sector.
3. Every functional Primary Agricultural Credit Society (PACS) is being digitally linked with NABARD through a common ERP platform.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Context
The United Nations has declared 2025 as the International Year of Cooperatives (IYC) under the theme “Cooperatives Build a Better World”. For India, this year marks a significant push toward the vision of “Sahkar Se Samridhhi” (Prosperity through Cooperation), aimed at strengthening the grassroots economy through a network of over 8.5 lakh cooperative societies.
What is the Cooperative Movement in India?
Cooperatives are member-owned and member-governed enterprises guided by shared economic, social, and cultural objectives.
- Scale: India accounts for more than one-fourth of the world's cooperatives.
- Reach: Over 8.5 lakh cooperatives are registered (6.6 lakh operational), covering nearly 98% of rural India and serving 32 crore members.
- Women’s Participation: Nearly 10 crore women are integrated into the cooperative framework through Self-Help Groups (SHGs).
Key Institutions:
- Ministry of Cooperation: Established on 6th July 2021 to provide focused national attention.
- Tribhuvan Sahkari University (TSU): India’s first national university for the cooperative sector (converted from IRMA).
- NCDC: Disbursed over ₹95,000 crore in FY 2025-26 to support production and processing.
Digitalization of Primary Agricultural Credit Societies (PACS)
PACS are village-level institutions providing short-term credit. The government is modernizing them through an ERP-based national software platform.
- Implementation: ₹2,925.39 crore project to computerize functional PACS (2022-23 to 2026-27).
- Progress: Hardware delivered to 65,151 PACS; hardware includes computers, VPNs, and biometric devices.
- Multipurpose Roles: PACS now function as Common Service Centres (CSCs), Jan Aushadhi Kendras, and retail petrol outlets.
New National-Level Multi-State Societies
The government has established three specialized cooperatives to boost the rural economy:
1. BBSSL (Bharatiya Beej Sahakari Samiti Limited): Focuses on seed certification and branding under the “Bharat Beej” label. 31,605 societies are enrolled.
2. NCOL (National Cooperative Organics Limited): Apex body for organic farming, marketing 28 products under the “Bharat Organics” brand.
3. NCEL (National Co-operative Exports Limited): Facilitates exports. In Q3 FY 2025-26, it exported agri-commodities worth ₹5,556 crore to 28 countries.
Strategic Initiatives
- World’s Largest Decentralised Grain Storage Plan: Launched in 2023 to address storage deficits at the grassroots. Godowns have been completed in 112 PACS.
- White Revolution 2.0: Launched in late 2024 to increase milk procurement by 50% in five years.
- Sahakar Taxi: India’s first cooperative-led mobility platform promoted by Amul, NAFED, and others.
- National Cooperation Policy (NCP) 2025: Launched on 24th July 2025 to modernize the movement for Viksit Bharat 2047.
Significance
- Decentralized Development: Empowers rural producers (milk, fish, artisans) by providing direct market linkage.
- Financial Inclusion: Use of Micro-ATMs and Rupay Kisan Credit Cards for cooperative members.
- Food Security: The integration of PACS as FPOs allows them to undertake diversified agricultural economic activities.
🎯 Analysis & Insights
Prelims mastery
Correct Answer: (b) 2 and 3 only.
Reasoning: Statement 1 is incorrect because the UN theme is “Cooperatives Build a Better World”; “Sahkar Se Samridhhi” is the Indian government's vision. Statement 2 is correct (TSU was setup by converting IRMA). Statement 3 is correct as the ₹2,925 crore project integrates PACS with NABARD via state/district banks.
Mains perspective
"Cooperatives are the backbone of a participatory economy." Discuss how the 'Sahkar Se Samriddhi' vision and recent digital reforms in PACS can address the challenges of rural livelihoods in India. (150 words)