GS2 · 15 marks · 250 words

State the reasons behind the poor performance of cooperatives in India. Also, discuss the reforms undertaken by the government to overcome the shortcomings.

Answered by 3 toppers · CSE 2023–2025

Statutory and Regulatory BodiesNGOs, SHGs and Civil SocietyPolicy Design and Implementation

Syllabus: Statutory, regulatory and various quasi-judicial bodies.

How toppers approached it

From all 3 answers · about 180 words · 100% drew a diagram.

Opening

  • A constitutional or legal provision3 of 3

Body

  • Points3 of 3

Close

  • No separate close2 of 3
  • A way forward1 of 3

The toppers’ answers

Ishita KishoreAIR 1 · 179 wordsTheir whole copy

Opening · a constitutional or legal provision

97th Constitutional Amendment Act 2011 gave constitutional statue to cooperatives fulfilling the Gandhian dream of 'Sarvodaya'.

Body · points

Diagram
* Constitutional Provisions * 97th CAA * Article 43 B (DPSP) * Article 19(1)(c) Fundamental Right

Reasons for poor performance

-i- North-South divide: lack of cooperative culture in North India in comparison to south creates impediments. -ii- State owned Cooperatives display lower efficiency compared to private limited ability. -iii- Failure to take off beyond dairy sector eg Amul. -iv- Politics of vote bank keeps people internally divided. Eg class/caste cooperatives in UP. -v- Low efficiency of microfinancing. Eg MUDRA has not made in roads. -vi- Competition from Corporates in an 'LPG' India.

Government initiatives

-i- SHG - Bank linkage Program to ensure proper disbursal of funds. -ii- Promotion of 'Cluster based approach' in Agricultural schemes. Eg Custom Hiring Centres. -iii- Strengthening position of women. Eg PM Narishakti se Samvaad in Covid. -iv- Microfinancing initiatives. Eg Jan Dhan, MUDRA. -v- Inclusive & Participatory approach. Eg milk cooperatives consulted before RCEP. -vi- Sugarcane cooperatives supported via FRP, SAP.

Diagram
* Good Results of Cooperatives * SHG loan repayment rate of 97% better than cooperatives * Farmer Producer Organisations use Farmer Connect Portal for APEDA exports * Better financial health * Eg Lijjat Papad started w Rs 80, now Rs 1600 turnover * India largest milk producer globally (50% by small players)

Close · a vision

Cooperatives are the lifeblood of a diverse, agro, populous economy & will play an integral role for 'New India @ 75'

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