Multi-State Cooperative Societies (Amendment) Bill, 2023

Context: The Rajya Sabha has passed the Multi-State Cooperative Societies (Amendment) Bill, 2023.

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• The Bill, which had been approved by Lok Sabha on July 25, 2023, was passed in Rajya Sabha by voice vote.
• The Bill seeks to establish a ‘Cooperative Election Authority’ with a view to introducing electoral reforms in the cooperative sector.

About Cooperative Societies

• A co-operative society is a voluntary association of individuals having common needs who join hands for the achievement of common economic interest.
• Its aim is to serve the interest of the poorer sections of society through the principle of self-help and mutual help.
• Examples of Successful Cooperatives in India: National Agricultural Cooperative Marketing Federation of India (NAFED), Indian Farmers Fertilizers Cooperative Limited (IFFCO), and AMUL.
• The item “Cooperative Societies” is a State Subject in the 7th Schedule via entry 32 of the State List in the Constitution of India.
• 97th Constitutional Amendment Act 2011:
  • It established the right to form cooperative societies as a fundamental right (Article 19).
  • It included a new Directive Principle of State Policy on the Promotion of Cooperative Societies (Article 43-B).
  • It added a new Part IX-B to the Constitution titled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).
  • It authorizes the Parliament to establish relevant laws in the case of multi-state cooperative societies (MSCS) and state legislatures in the case of other cooperative societies.
• Ministry of Cooperation: The Union Ministry of Cooperation was formed in 2021, its mandate was looked after by the Ministry of Agriculture before.

What are Multi-State Cooperative Societies (MSCS)?

• Multi-State cooperatives are societies that have operations in more than one state– for instance, a farmer-producers organization which procures grains from farmers from multiple States.
• Such MSCSs are registered under the Multi-State Co-operative Societies Act 2002, and their regulation lies with the Central Registrar.

Stats IQ

• According to the Ministry of Cooperation, there are around 8.5 lakh cooperatives in India, with about 1.3 crore people directly attached to them.
• As per NCUI data from 2018, the percentage of cooperative members in proportion to the total population increased from 3.8% in 1950-51 to 22.2% in 2016-17.
• There are close to 1,500 MSCSs registered in India, the highest number being in Maharashtra.
• A large number of MSCSs are credit societies, while agro-based societies, dairies and banks are also sizeable in number.

Key highlights of the Multi-State Cooperative Societies (Amendment) Bill, 2023

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