Concerns that centre will tighten its grip on cooperation; Kerala cautious in new cooperative policy

THIRUVANANTHAPURAM: Kerala is concerned about the new proposals in the Central Cooperative Policy, including the formation of cooperative educational institutions as apex institutions at the national level and the formation of a National Cooperative Digital Employment Exchange for recruitment.

The cooperative sector in the country is the strongest and is most beneficial to the common man in Kerala. The central move is taking into account its political dimension. Kerala's stance is known to be that the new cooperative policy of the centre should be approached with caution.

Kerala is also of the opinion that the proposal to amend the State Cooperative Act and the bye-laws of the societies is unconstitutional. There are suggestions that the primary societies in the state should become members of the national level societies and that the basic information of the societies should be provided in the National Cooperative Database. These suggestions are a shortcut for the Centre to enter into cooperation, which is a state subject.

There is also concern in the state that if societies in Kerala want help, they can only get it through these apex banks. Kerala does not agree with the unified software and unified rules proposed by the Centre. There is concern that the Centre may come into play in cooperation, just as the suggestion that the education sector should sign the PM Shri scheme for financial assistance.

NABARD loan may also be affected

The Centre provides loan assistance of Rs. 1400 crore per year to Kerala for the cooperative sector through NABARD. Money is also being provided to societies through the National Cooperative Development Corporation (NCDC). A project worth Rs. 2,000 crore is also underway through the Central Scheme, Agriculture Infrastructure Fund. There may also be an ultimatum that the conditions of the new cooperative policy may have to be met to get this money.

"This is a short cut to the Centre to enter into cooperation, which is a state subject"

V.N. Vasavan,

State Cooperation Minister