Maharashtra Cooperative Societies Act 1960

• 19 May 2025

Why in News? 

 Maharashtra Chief Minister announced the formation of a committee to examine and recommend amendments to the Maharashtra Cooperative Societies Act, 1960.  

• This move aims to modernize the legal framework governing cooperatives to reflect changing economic realities and promote inclusive growth. 

 Key Points 

• The Maharashtra Cooperative Societies Act, 1960: 
  • It is a state-level law that governs the establishment, registration, and functioning of cooperative societies within Maharashtra. 
  • It aims to promote self-reliance and collective welfare through cooperative societies. 
  • The Act has been amended several times over the years, with the latest amendments being the Maharashtra Co-operative Societies (Second Amendment) Act, 2024. 
• Need for Legal Reform in the Cooperative Sector: 
  • Cooperative laws need reform to enable successful cooperative organisations to list their shares on the market. 
    • This would facilitate transparent valuation through market-based share pricing, enhance accountability, and foster greater competitiveness within the sector. 
  • There is a need to modernize the Maharashtra Cooperative Societies Act, 1960, by incorporating sector-specific chapters. 
    • Sector-Wise Gross Domestic Product (GDP) Contributions: 
      • The manufacturing sector contributes 22–24% to the GDP. 
      • The services sector contributes 52–54%, generating the highest Goods and Services Tax (GST). 
      • The agriculture and rural sector, despite employing 60% of India’s population, contributes only 12%. 
  • There is a need to evaluate the impact of credit societies, housing cooperatives, consumer societies, and urban cooperative banks. 
• Kolhapur: A Model of Rural Prosperity: 
  • Kolhapur’s success is attributed to its high milk production (70–80 lakh litres daily) and thriving sugar industries. 
    • Maharashtra constitutes 25% of India's cooperatives. 
  • A new Rs 750 crore Mother Dairy plant has been set up in Nagpur, Vidarbha to replicate Kolhapur’s success. 

 Cooperative Societies 

• About: 
  • Co-operatives are voluntary, democratic, and autonomous organisations controlled by their members who actively participate in their policies and decision-making. 
    • Multi-state cooperative societies are cooperative societies that have members and activities in more than one state of India. 
  • Its aim is to serve the interest of the poorer sections of society through the principle of self-help and mutual help. 
  • These operate in various sectors such as agriculture, textile, poultry, and marketing. 
• Types of Cooperatives in India: 
  • Consumers' Cooperatives: Offer goods at reasonable prices by directly sourcing from producers, cutting out the middlemen. e.g., Kendriya Bhandar.  
  • Producers' Cooperatives: Assists small producers by supplying essential production materials, including raw materials and equipment.  
  • Cooperative Marketing Societies: Help small producers sell their products collectively, e.g., Anand Milk Union Limited (AMUL).  
  • Cooperative Credit Societies: Provide financial services like savings and loans, e.g., Urban Cooperative Banks, Village Service Cooperative Society.  
  • Cooperative Farming Societies: Help small farmers gain the benefits of large-scale farming, e.g., lift-irrigation cooperatives, cooperatives and pani-panchayats.  
  • Housing Cooperative Society: Provides cost-effective housing options by acquiring and developing land for its members, e.g. Employees’ Housing Societies and Metropolitan Housing Cooperative Society.