Budget for cooperatives to achieve inclusive growth

Subject : Schemes

Concept :

Budget 202324 strengthens the cooperatives to take forward the agenda for inclusive growth.
Cooperatives as economic entities have a major role in enhancing the income of the small and weaker sections, providing opportunities for employment, enabling access to credit and the market.

Initiatives for Cooperatives

The Cabinet has also approved the Centrally Sponsored Scheme — Vibrant Villages Programme for the FYs 2022–23 to 2025- 26 with a financial allocation of ₹4,800 crore. The scheme will strengthen the cooperative movement through two lakh multipurpose Primary Agricultural Credit Societies in each uncovered panchayat.
It will lead to infrastructure development and livelihood opportunities in four States and one Union Territory along the northern land border.
Budget outlay of ₹1,150.38 crore is allocated for Computerization of 63,000 Primary Agricultural Credit societies (PACS), and establishing National Multi State Cooperative Societies in export, seed and organic products, creation of large grain storage infrastructure and national cooperative database.
The model byelaws on PACS pave the way to make PACS as multi service centres to dispense services in a timely and affordable manner.
Budget provides for the new association and or cooperative society in manufacturing, to be formed on or after April 2023, which commences manufacturing or production by March 2024.
It Provided 15% concessional tax to promote new manufacturing co-operative society.
A massive decentralised storage capacity will be set up to help farmers store their produce and realise remunerative prices through sale at appropriate times through cooperative ecosystem

Draft bye-laws Proposals:

The Primary Agricultural Cooperative Societies (PACS), are set to get transformed with a different name and have a CEO to undertake infrastructure development, building and managing community centres, hospital or educational institutions, and dealership in petrol or diesel, if States agree to accept the draft bye-laws prepared by the Centre.
The Centre has proposed the PACS may promote subsidiary organisations, such as Farmer Producers Organisation (FPO) with 100 per cent funding from the society for the furtherance of its stated objectives.
The Centre’s proposals brings enrollment of members under two classes—A and B.
A class members (shareholders) will have voting rights and claims over dividends
B-class (nominal members) will not get voting rights or contest for Board of Governors.
For Vibrant Villages Programme, refer – https://optimizeias.com/vibrant-villages-programme/