Cooperative Movement and its Revitalization in India
Agriculture
- PYQs8
- Articles1
Background
Crucial for understanding rural economy, agricultural development, financial inclusion, decentralized governance, government's approach to socio-economic development, and the role of institutional reforms in a vital sector.
The cooperative movement in India is a significant socio-economic force, rooted in the principles of self-help and mutual aid, playing a crucial role in rural development, agriculture, and financial inclusion. The recent establishment of the Ministry of Cooperation and its various initiatives signify a renewed focus on strengthening and modernizing this sector to achieve "Sahakar-se-Samriddhi."
Facts & tables
- Ministry of Cooperation Establishment
- Established on 06.07.2021, with the vision 'Sahakar-se-Samriddhi' (prosperity through cooperation).
- Sectoral Diversity and Scale
- Encompasses diverse sectors like agriculture, dairy, credit, housing, and sugar, with a large presence across states (e.g., 2,27,177 societies in Maharashtra).
- Key Initiatives
- Includes computerization of Primary Agricultural Credit Societies (PACS), Model Bye-laws for PACS, Cooperative-led White Revolution 2.0, and tax/financial relief for cooperative sugar mills.
- Key Financing Institution
- National Cooperative Development Corporation (NCDC) is a principal financing and developmental institution for the cooperative sector.
| Type | Reference |
|---|---|
| Conceptual area | Indian Economy |
| Conceptual area | Agricultural Policies & Supply Chains |
| Conceptual area | Welfare Schemes & Social Policies |
| Conceptual area | Constitutional & Statutory Bodies |
| Conceptual area | Digital Financial Infrastructure |
| Conceptual area | Emerging Information Technologies |
| Conceptual area | Fiscal Policy & Public Debt |
| Body | Role |
|---|---|
| Ministry of Cooperation | Formulates policy |
| National Cooperative Development Corporation (NCDC) | Finances |
| Primary Agricultural Credit Societies (PACS) | Implements |
| NABARD | Regulates |
Prelims angle
Prelims angle: Multi-statement analysis
Prelims angle: Policy measures
- Ministry of Cooperation (2021) aims for 'Sahakar-se-Samriddhi'.
- Key initiatives: PACS computerization, Model Bye-laws, Cooperative-led White Revolution 2.0.
- NCDC provides finance for cooperative development across sectors.
- Government offers tax relief and financial support for cooperative sugar mills.
- Cooperatives are vital for rural economy, agriculture, and financial inclusion.
| Year | Framing tags |
|---|---|
| 2020 | Statement-based questions, Institutional roles and functions |
| 2020 | Multi-statement analysis, Conceptual understanding |
| 2018 | Multi-statement analysis, Factual recall |
| 2017 | Multi-statement analysis, Policy measures |
| 2016 | Multi-statement analysis, Policy measures |
| 2015 | Factual recall, Conceptual understanding |
| 2014 | Factual recall, Multi-statement analysis |
| 2013 | Factual recall, Institutional roles and functions |
Timeline
-
Indian Economy
Conceptual area
-
Agricultural Policies & Supply Chains
Conceptual area
-
Welfare Schemes & Social Policies
Conceptual area
-
Constitutional & Statutory Bodies
Conceptual area
-
Prelims 2013
Factual recall, Institutional roles and functions
-
Prelims 2014
Factual recall, Multi-statement analysis
-
Prelims 2015
Factual recall, Conceptual understanding
-
Prelims 2016
Multi-statement analysis, Policy measures
-
Prelims 2017
Multi-statement analysis, Policy measures
-
Prelims 2018
Multi-statement analysis, Factual recall
-
Prelims 2020
Statement-based questions, Institutional roles and functions
-
Prelims 2020
Multi-statement analysis, Conceptual understanding
-
Cooperative societies in Maharashtra
The cooperative movement is vital for India's rural economy. The Ministry of Cooperation, established in 2021, is driving its revitalization through initiatives like PACS computerization, new bye-laws, and support for dairy and sugar cooperatives, aiming for inclusive growth and 'Sahakar-se-Samriddhi'.
See also
Past papers
2014–2020 · 6 questions
In the news
Cooperative societies in Maharashtra
The cooperative movement is vital for India's rural economy. The Ministry of Cooperation, established in 2021, is driving its revitalization through initiatives like PACS computerization, new bye-laws, and support for dairy and sugar cooperatives, aiming for inclusive growth and 'Sahakar-se-Samriddhi'.
Try these PYQs
With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct?
1. This initiative aims to demonstrate the improved production and post-harvest technologies and to demonstrate value addition techniques, in an integrated manner, with a cluster approach.
2. Poor, small, marginal and tribal farmers have a larger stake in this scheme.
3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro-irrigation equipment.
Select the correct answer using the code given below.
Statement 1 is correct. The Initiative for Nutritional Security through Intensive Millets Promotion aims to demonstrate improved production and post-harvest technologies in an integrated manner with a cluster approach. Statement 2 is also correct. Millets are mainly grown in regions of low annual rainfall and poor arid soil. It is inadequate, small, marginal and tribal farmers, who cannot afford costly irrigation practices, depend on the cultivation of millets. Hence these farmers benefit from the scheme and have a larger stake in this scheme. Statement 3 is not correct. There is no such provision to encourage commercial crop farmers to shift to millet cultivation.
Consider the following statements :
The nation-wide ‘Soil Health Card Scheme’ aims at
1. expanding the cultivable area under irrigation.
2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
3. checking the overuse of fertilizers in farmlands.
Which of the above statements is/are correct?
Out of the listed statements about the Soil Health Card Scheme : Statement 1 is Incorrect: Expanding the cultivable area under irrigation is not a primary objective of the scheme. Statement 2 is Incorrect: Banks don't directly use soil cards to assess loan quantum. Loan approvals depend on various factors like land ownership, crop type, and credit history. Statement 3 is Correct: A key objective of the scheme is to promote the judicious use of fertilisers. By informing farmers about their soil's nutrient status, the scheme encourages them to apply only the required amount of fertilisers, reducing overuse and potential environmental damage. Therefore, the correct answer is 3 only (checking the overuse of fertilisers in farmlands).Hence, option B is the correct answer.
Programme/ Project Ministry
1. Drought-Prone Area Programme: Ministry of Agriculture
2. Desert Development Programme: Ministry of Environment and Forests
3. National Watershed Development Project for Rainfed Areas: Ministry of Rural Development
Which of the above pairs are correctly matched?
Pair 1 is not correct: The drought prone area programme comes under Ministry of Rural Development. This programme aims to mitigate the impacts of droughts on crop production, livestock, land and water resources. Pair 2 is not correct: The Desert Development Programme comes under Ministry of Rural Development. The basic objective of the Desert Development Programme is to minimise negative effect of drought and control desertification. Pair 3 is not correct: The national watershed project for rainfed areas implemented by Ministry of Agriculture is an umbrella scheme under Pradhan Mantri Krishi Sinchayi Yojana.
With reference to organic farming in India, consider the following statements:
1. The National Programme for Organic Production' (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
2. The Agricultural and Processed Food Products Export Development Authority' (APEDA) functions as the Secretariat for the implementation of NPOP.
3. Sikkim has become India's first fully organic State.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: The National Programme for Organic Production (NPOP) is operated under the guidelines and directions of the Ministry of Agriculture and Farmers Welfare (MoA&FW), not the Ministry of Rural Development. Statement 2 is Correct: The Agricultural and Processed Food Products Export Development Authority (APEDA) does function as the Secretariat for the implementation of NPOP. APEDA plays a crucial role in promoting and certifying organic products in India. Statement 3 is Correct: Sikkim has indeed become India's first fully organic State. This achievement signifies India's efforts to promote sustainable agricultural practices. Therefore, the correct answer is 2 and 3 only.
Consider the following statements:
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison of Scheduled Commercial Banks are Regional Rural Banks
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?
Statement 1 is incorrect. In terms of short-term credit delivery to the agriculture sector, Scheduled Commercial Banks (SCBs) and Regional Rural Banks (RRBs) generally deliver more credit compared to District Central Cooperative Banks (DCCBs). SCBs and RRBs have a larger network and resources to provide credit to the agriculture sector. Statement 2 is correct. One of the primary functions of DCCBs is indeed to provide funds to the Primary Agricultural Credit Societies (PACS). DCCBs act as the intermediary between the Reserve Bank of India (RBI) and PACS, facilitating the flow of credit from the central bank to the grassroots level through cooperative credit institutions. Hence, option B is the correct answer.
Show 3 more PYQs
In India, which of the following can be considered as public investment in agriculture?
1. Fixing Minimum Support Price for agricultural produce of all crops
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
Public investment in agriculture refers to government expenditures aimed at improving the agricultural sector, including infrastructure development, technological improvements, and providing institutional support. Statement 1 is incorrect: Fixing the Minimum Support Price (MSP) is a policy decision, not an investment. While it affects the agricultural sector, it is not a direct public investment in terms of capital expenditure. Statement 2 is correct: The computerization of Primary Agricultural Credit Societies (PACS) is a public investment because it involves government funds directed towards modernizing agricultural credit systems, enhancing efficiency, and accessibility for farmers. Statement 3 is correct: Social Capital development is a public investment in agriculture, as it involves building networks and community-based resources that help farmers improve productivity and access to resources. Statement 4 is incorrect: Free electricity supply is more of a subsidy, not a direct public investment in the form of capital expenditure. Statement 5 is incorrect: Waiver of agricultural loans is a policy measure aimed at alleviating farmer debt but does not qualify as an investment in infrastructure or capital. Statement 6 is correct: The setting up of cold storage facilities by the government is a direct public investment aimed at improving agricultural infrastructure and reducing post-harvest losses. Hence, option C is the correct answer.
Which of the following grants/ grant direct credit assistance to rural households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using the codes given below:
1. Regional Rural Banks (RRBs): RRBs are established to provide credit and banking facilities to rural areas, especially to small and marginal farmers, agricultural laborers, and rural artisans. They grant direct credit assistance to rural households. 2. National Bank for Agriculture and Rural Development (NABARD): NABARD primarily provides refinance facilities to banks and financial institutions for lending to rural sectors. It does not directly lend to rural households, except in very limited cases through pilot schemes. 3. Land Development Banks (LDBs): LDBs provide long-term credit to farmers for land development and agricultural improvements. They grant direct loans to rural households.
Consider the following statements:
1. The Accelerated Irrigation Benefits Programme was launched during 1996-97 to provide loan assistance to poor farmers.
2. The Command Area Development Programme was launched in 1974-75 for the development of water-use efficiency.
Which of the statements given above is/are correct?
Statement 1 is incorrect: The Accelerated Irrigation Benefits Programme (AIBP) was indeed launched during 1996-97, but its objective was to provide central assistance to states to accelerate the pace of irrigation development, not specifically to provide loan assistance to poor farmers. Statement 2 is correct: The Command Area Development Programme (CADP) was launched in 1974-75, its primary focus was on improving the water-use efficiency and agricultural productivity in the command areas of major and medium irrigation projects.