Maharashtra Cooperative Societies Act 1960 | Maharashtra | 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%.
- Sector-Wise Gross Domestic Product (GDP) Contributions:
- There is a need to evaluate the impact of credit societies, housing cooperatives, consumer societies, and urban cooperative banks.
- Cooperative laws need reform to enable successful cooperative organisations to list their shares on the market.
- 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.
- Kolhapur’s success is attributed to its high milk production (70–80 lakh litres daily) and thriving sugar industries.
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.
- Co-operatives are voluntary, democratic, and autonomous organisations controlled by their members who actively participate in their policies and decision-making.
- 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.