Lok Sabha Passes Multi-State Cooperative Societies (Amendment) Bill

• 31 Jul 2023

On 25^th July, 2023, the Lok Sabha passed the Multi-State Cooperative Societies (Amendment) Bill, aiming to enhance transparency and regular elections in cooperatives.

Key Points:

• Strengthening Cooperative Movement: The bill was passed in the Lok Sabha through a voice vote after a brief discussion, led by the Union Home Minister and Minister of Cooperation, expressed that the passage of this bill marks the beginning of a new era in the cooperative movement of the country.
• Focus on Transparency and Accountability: The Union Cabinet granted approval to the bill, with the primary goal of promoting transparency, accountability, and profitability in multi-state cooperative societies.
• Formation of Three New Multi-State Societies: Under the government's vision, three new multi-state societies will be established to bolster the cooperative sector.
• These societies will facilitate the export of farmers' produce, engage small farmers in seed production, and market organic products across the country and internationally.
• Election Authority Empowerment: The bill includes provisions to empower the Election Authority to conduct fair elections independently, without government interference, similar to the Election Commission's authority.
• Enhancing Representation and Governance: The bill ensures better representation by reserving one seat for Scheduled Caste or Scheduled Tribe members and one for women in committees, enhancing the participation of these groups.
• Disqualification of Board Members for Non-Compliance: Board members can face disqualification for non-compliance with constitutional requirements.
• Additionally, employment of blood relations or distant relatives is prohibited in the recruitment process of employees.
• Future Initiatives: The Union government plans to establish a cooperative university for cooperative education and launch the National Cooperative Database.
• A new national cooperative policy is also in the works and expected to be formulated before Diwali this year, providing a roadmap for the next 25 years of cooperatives in the country.