India's visionary cooperative economic framework catalyses inclusive development, global integration, and social prosperity

On Kisan Diwas today, there is a critical need for a large-scale communication initiative to educate and empower marginalized farmers in rural areas about the innovative Cooperative Economic Framework. This framework, conceptualized by Team India, aims to revive the Cooperative organization in Amrit Kaal and enable farmers to benefit from the vision of "Sahkar se Samridhi" set by the newly formed Ministry of Cooperation.

The Cooperative Economic Framework marks a significant shift, renewing the Social Contract between the government, the masses, and other stakeholders. With 290 million Cooperative Members in India, this sector is poised to embrace a comprehensive vision of inclusive development, challenging traditional economic forecasts.

The transformation involves reimagining Primary Agriculture Cooperative/ Credit Society (PACS) as Multipurpose entities, facilitating inclusive business ventures at the grassroots level. This paradigm shift not only catalyses indifferent growth and job creation but also empowers farmers with unprecedented bargaining power.

A monumental initiative within this framework is the World's Largest Decentralized Grain Storage Plan in the Cooperative sector. This plan, involving the creation of warehouses, custom hiring centres, and primary processing units at the PACS level, aims to leverage technology like Blockchain to issue E-tokenized warehouse receipts. This innovation has the potential to revolutionize the entire food grain value chain, reducing wastage and transportation costs while ensuring fair prices for farmers. Cooperatives are now enabling farmers to operate Retail Petrol/Diesel outlets, LPG Distributorships, and Jan Aushadhi Kendra, opening avenues for income generation and contributing significantly to GDP. The newly formed National Multi-State Cooperative Export Society is also playing a crucial role, with 2,625 PACS/cooperative societies from 22 States and UTs already members. This cooperative is actively exporting rice and sugar to multiple countries, with profits returning to farmers through dividends. Farmers in rural India need not rely on moneylenders for microloans, thanks to the availability of credit through various institutions competing to support farming communities. The Cooperative Economic Framework, with its emphasis on regenerative agriculture and improved access to credit, is yielding positive results for farmers.

As the world grapples with challenges and turns away from values of trust and solidarity, India's Cooperative economy stands out as a potential solution. The newly formed World Cooperative Economic Forum, led by Dileep Sanghani, aims to democratize the global value chain, creating Cooperative Exchanges and Economic Zones. This forum, focused on exports and employment, could significantly impact the socio-economic profile of marginalized populations worldwide.

The hope is that by 2024, the United Nations will recognise India's PACS to APEX model as a neo-cooperative Framework, integrating Indian cooperatives with global counterparts. The use of modern technology like Blockchain and E-trading could make this integration a powerful tool for achieving Sustainable Development Goals (SDGs), particularly in creating social and solidarity frugality and reducing poverty.

Introducing Information and Communication Technologies (ICTs) through Cooperatives in remote areas enhances productivity, connectivity, and knowledge sharing. Cooperatives can play a crucial role in the profitable and social development of emerging markets, and their competitiveness needs strengthening through legal, non-supervisory, and executive support, access to finance, and human capital development.

The potential transformation of PACS into Mini Mandis opens new marketing opportunities, fostering rural economic growth. The Cooperative Economic framework aims to create a network of PACS-led Cooperative Economic Zones, promoting decentralized production and a centralized processed Indian Agri-Export market. This approach could also spur the manufacturing of Drones and other profitable farm enterprises within these zones.

On this Kisan Diwas, it's time to celebrate the vision of "Sahkar se Samridhi" that has made this Cooperative movement possible. The contributions of visionaries like the Late Tribhuvan Das Patel and Sardar Patel, who laid the foundation, are integral to the realization of this modernized Gram Swarajya powered by blockchain technology. As India sets a new tune for a Social and Solidarity economy, it is hoped that the ripple effect reaches the global North and resonates with modern Development economists.

(The writer is secretary general CNRI and member PM–MSP Committee; views are personal)