National Cooperative Policy

Source-This post on National Cooperative Policy has been created based on the article “Budget 2024: Government to introduce a national cooperation policy for the cooperative sector to boost rural economy” published in “Mint” on 24 July 2024.

Why in the news?

The Centre will introduce a national cooperation policy to systematically and comprehensively develop the cooperative sector.

About National Cooperative Policy

Background-A 48-member committee, led by Shri Suresh Prabhakar Prabhu, was set up to develop the New National Cooperation Policy. The committee has drafted the policy report, which is now being finalized.

Objective-To promote a cooperative-based economic development model where technology, skills and education work together.

Recommendation of Committee-

A) A national innovation fund be set up to encourage entrepreneurship in agricultural credit societies to strengthen rural economy.

B) There is a need to strengthen cooperative credit systems and financing, build infrastructure and technology, promote quality education, training, and research, and establish effective governance and networks

Significance –

A) It will help in realising the vision of ‘Sahakar se Samriddhi’, promoting a cooperative-based economic development model.

B) It will bolster the cooperative movement in the country and deepen its reach in the grassroots.

What are the steps taken by the government recently to boost cooperative sector?

1) The Ministry of Cooperation is collaborating with State Governments with the spirit of cooperative federalism to promote the cooperative sector’s development nationwide.

2) The Ministry has urged NABARD(National Bank for Agriculture and Rural Development)  to devise a scheme/action plan to establish new District Central Cooperative Banks (DCCBs) in districts without coverage.

3)The government approved a plan to set up new multipurpose PACS or primary dairy/fishery cooperative societies in all uncovered Panchayats/villages over the next five years. This initiative will integrate multiple Government of India schemes such as DIDF, NPDD, PMMSY, and FIDF.

Read More-Ministry of Cooperation

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