Introduction

• 2025 has been designated as the Year of International Cooperatives.

• India hosts nearly 25% of the world’s cooperatives, with 800,000 societies and one-third of rural citizens involved.

• The National Cooperative Policy 2025 seeks to reimagine cooperatives as tools of socio-economic transformation through reforms in legal frameworks, finance, technology, and inclusivity.

Promises of the Policy

1. Strengthening Legal and Regulatory Framework

• Aims to provide greater autonomy and transparency.

• Simplification of rules to ease the business environment.

• Moves away from excessive bureaucratic control.

2. Financial Inclusion and Access

• Inclusive financing, especially for marginalised and underserved communities.

• Strengthening Primary Agricultural Credit Societies (PACS) as nodal institutions.

3. Model Cooperative Villages

• Proposal: one model village per district showcasing best practices.

• Demonstrates governance reforms, technology adoption, and diversified activities.

• Intended as replicable models for others.

4. Youth and Women Participation

• Focus on democratising cooperatives by involving women, youth, and marginalised groups.

• Integration of cooperative education in curricula.

• Training initiatives for employment in the cooperative sector.

5. Technology and Sustainability

• Adoption of digital platforms such as Cooperative Stack and Agri Stack.

• Promotes circular economy and sustainability goals.

• Seeks to integrate cooperatives into the digital economy.

Pitfalls and Concerns

1. Centralisation vs Federalism

• Despite acknowledging cooperative federalism, policy leans towards centralised control.

• Absence of robust mechanisms for Centre–State coordination.

2. Model Villages Without a Model Code

• No uniform cooperative code for states.

• Risks inconsistent implementation and political interference.

3. Symbolic Inclusion

• Emphasis on women/youth participation is non-binding.

• Risk of remaining rhetoric without substance.

4. Political Interference

• History of elite capture in cooperatives.

• Policy does not provide safeguards against misuse for political patronage.

5. Over-centralised ERP Systems

• Though designed for transparency, ERP may sideline grassroots voices.

• Small cooperatives risk marginalisation in a data-heavy, centralised structure.

6. Neglect of Urban Cooperatives

• Policy remains largely agrarian-rural centric.

• Overlooks potential in housing, sanitation, gig economy, and urban services.

Suggested Reforms

1. National Commission on Cooperative Governance

   • Independent body to oversee decentralisation and prevent political misuse.

2. Mandatory Social Audits

   • Ensure grassroots accountability and participatory evaluation.

3. Model Cooperative Code

   • Uniform legal framework across states.

   • Protects autonomy and democratic functioning.

4. Cooperative Innovation and Resilience Fund

   • To finance experimentation, crisis response, and sustainable growth.

5. Women and Tribal Cooperative Equity Mission

   • Dedicated schemes to ensure real equity and inclusion of historically marginalised communities.

Conclusion

• The National Cooperative Policy 2025 reflects India’s renewed commitment to cooperative models of development.

• It improves upon the 2022 draft but risks becoming symbolic without strong implementation.

• For success, cooperatives must be democratic, autonomous, and people-centric, not merely instruments of state control.

• If implemented with accountability, inclusivity, and vision, the policy can revitalise India’s cooperative legacy and transform socio-economic democracy on the ground.

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