Milking the Cooperative Sector

Dr Suresh Mathew Dr Suresh Mathew
09 Aug 2021

Common people are the backbone of cooperative movement. Cooperatives have a dominant presence and they play a leading role in sectors like agriculture, credit, marketing, milk, fertilizers, cotton, sugar, fisheries, handlooms, etc. One can assess the significance of this sector from the fact that in States like Kerala even medical colleges are run by cooperatives. All of them are supposed to be governed by its members to protect their interests. But, for all practical purpose, they have fraudulently served the interests of politicians and political parties at the cost of its genuine members. 

Lured by this falsified charm, leaders make all-out efforts to snake their way and capture cooperative societies of every hue which are like treasure pots. Once at the helm of affairs, they wield enormous clout. Through favours showered upon their cronies, it becomes easy for them to garner votes during Assembly and general elections. Many of them amass wealth through unfair means, weakening the financial base of these societies; in the process several of them have gone bust. 

In this context the establishment of a new Ministry of Cooperation under the redoubtable Amit Shah has raised many eyebrows. ‘Cooperatives’ is a State subject and till now it has been under the control of the Registrar of Cooperatives of each State. Hence the setting up of the new Central Ministry is taken with a pinch of salt. Shah, coming from Gujarat where cooperatives have a strong base, knows full well the penetrating roots the movement has taken across the country and its hold among the common people. The move by the Centre is seen as yet another bid to have a “strong grip” at the grassroot-level. Political parties and leaders apparently consider cooperatives something to be milked for electoral and pecuniary benefits.  

Herein lies the clue to many cooperatives going broke. There is probably no State which has not reported major scandals and scams in this sector. The humongous scams in Madhavapura Mercantile Cooperative bank in Ahmedabad and the latest Karuvannur Co-operative Bank in Kerala, running into hundreds of crores and hitting tens of thousands of depositors, are just a tip of the iceberg. Such defaulting cooperatives, led by people with strong political backing, have made people paupers and led to their death by suicide. In most cases, ‘thieves’ were in the ship itself.  

Though the apparent objective of the new Ministry is to deepen the “people-based movement as an economic development model”, the present regime’s tendency to gnaw away the federal structure makes people wary of the government’s decision. If the purpose is to reverse the rot that has weakened the system, it is a laudatory move. If the new Ministry can bring scores of cooperatives that have defaulted on payment to its members back on their track and return people’s hard-earned money with interest, it will be a worthy decision. On the other hand, if the move is meant to tighten the ruling party’s and its government’s grip on the cooperatives across the country to seek political and economic gains, it could probably be the end of the road for a sector that has worked wonders for the people.   

Recent Posts

Pope Francis is bowing out in this special jubilee year of hope, which he has been leading from the front even as he has braved prolonged health concerns. As he passes on and the world bids goodbye to
apicture George Plathottam
28 Apr 2025
Francis' legacy can be summarised in four keywords that reflect powerfully and prominently in his writings, discourses, actions, and life: joy, hope, mercy, and peace.
apicture Bp Gerald John Mathias
28 Apr 2025
Pope Francis redefined leadership through humility, inclusion, and service. He stood with the marginalised, prioritised mercy over judgment, championed ecological justice, and called for reform rooted
apicture Jacob Peenikaparambil
28 Apr 2025
By mocking Muslims as 'puncture repairers', the Prime Minister reduces a vibrant community to a stereotype. This isn't rhetoric—it's a calculated attempt to stigmatise identity, distract from real iss
apicture A. J. Philip
28 Apr 2025
We hear people saying that the President of India is there to sign on the dotted line prepared by the ruling party. We refuse to believe it because the President is the Constitutional head of the nati
apicture P. A. Chacko
28 Apr 2025
Tamil Nadu's autonomy resolution is yet another spark in the recent federalism debates, challenging central authority over education, finance, and representation. As BJP seeks to tighten its claws, th
apicture Dr John Singarayar
28 Apr 2025
In Manipur, once-united communities now bleed at each other's hands, their bonds severed by narratives crafted far away. As homes burn and futures vanish, the real victors are those who profit from di
apicture Estelle Kipgen & Leishilembi Terem
28 Apr 2025
At a time when India seeks to attract global investment and project itself as a transparent business destination, such incidents chip away at investor confidence. International investors are already w
apicture Jaswant Kaur
28 Apr 2025
Many big children who accompany their parents to their workplaces also join the labour. But until they migrate, they roam around in the village or go to plantations. They become child labourers.
apicture F. M. Britto
28 Apr 2025
Police assaulted children and priests with lathis and beat and molested women belonging to the tribal community as they barged into Juba Catholic Church in the Gajapati district, Odisha, on March 22,
apicture Sujata Jena
28 Apr 2025