Cooperative Reforms and horticultural production



i) Cooperative Reforms

  • The Cooperative movement in India traces its origin to the agriculture and allied sector. It was evolved as a mechanism for pooling meagre resources of the people, with a view to providing them the advantages of economies of scale.

ii) National Policy on Cooperatives

  • The objectives of the National Policy are to facilitate all round development of the Cooperatives in the country and to work as a guide for action of the State in Cooperative.

iii) The National Cooperative Development Corporation (NCDC) Amendment Act, 2002

  • NCDC Act, 1962 has been amended vide NCDC (Amendment) Act, 2002 expanding the mandate of NCDC to include foodstuff, industrial goods, livestock and services in the programmes and activities in addition to the existing programmes.
  • NCDC will be able to provide loan directly to the Cooperative without State/Central Government guarantee on furnishing of security.
  • iv) Constitution (111th Amendment) Bill 2009
    • Its objectives are : (i) To minimize the Government control and interference in the working of Cooperative Societies so as to give them a genuine democratic and autonomous character; (ii) To ensure timely conduct of elections, general body meetings and audit of Cooperative Societies; and (iii) To professionalize the management of these institutions.

    v) MultiState Cooperative Societies (MSCS) Act, 2002
    The Central Govt. has taken a lead in providing required

autonomy to the cooperatives by enacting MSCS Act, 2002, replacing the MSCS Act, 1984.
i) Amendment to the Multi-State Cooperative Societies Act 2002
a                   To ensure the democratic autonomous and professional
functioning of cooperatives, it has been decided to initiate a proposal for amendment to the constitution for the purpose.
vii) Constitution of High Powered Committee

  • To review the achievements of Cooperative movement, a high powered committee has been constituted. The Committee has submitted its interim report on the amendment to the MSCS Act, 2002 and constitutions (106th) Amendment Bill, 2006. Committed has submitted its report on May 2009 and its recommendations are being examined.

viii) Revival Package for Short term Cooperative Credit Structure

  • In pursuance of recommendations made by the Vaidyanathan Committee Task Force, the Govt. of India had approved a Revival Package for Short Term Cooperative Credit Structure which aims at making it a well-managed and vibrant structure to best serve the credit needs of Rural India.
  • The Revival package seeks to (a) provide financial assistance to bring the system to an acceptable level of health; (b) introduce legal and institutional reforms necessary for their democratic, self-reliant and efficient functioning and (c) take measures to improve the quality of management as an integrated package.
  • employment opportunities, to attain food and nutrition security, improve income through value-addition and foreign exchange through exports. The horticulture sector contributes than 30.5 per cent to GDP of agriculture and has maintained the growth rate of than 5 per cent during the last two decades.
    • Fruits and vegetables, together, constitute about 92 per cent of the total horticultural production in the country. The area under fruit crops is 6.36 million ha with a production of 71.31 million tonnes which contributes 31.75 per cent share in the total production. Vegetable sector occupies 8.14 million ha with total production of 132.8 million tonnes and contributes approximately 61.0 per cent share of total production.
    • India is the largest producer, consumer and exporter of spices and spice products in the world. Over 100 plants spices are known to yield spices and spice products among which around 50 are grown in India.


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