Latest news with #CooperativeSocietiesAct
The Print
15-05-2025
- Business
- The Print
How Sanchi, facing squeeze from Amul deal, became synonymous with MP's dairy legacy
But not everybody was celebrating the deal. After the Madhya Pradesh Cooperative Dairy Federation (MPCDF) entered into a five-year agreement with NDDB, he set an ambitious target of bringing about 'a milk revolution' in the state by doubling its milk production capacity over the next five years. Bhopal: When Madhya Pradesh signed an agreement with the Gujarat-based National Dairy Development Board (NDDB) last month to boost milk production in the state, Chief Minister Mohan Yadav was most gung-ho. The decision sparked fierce criticism not only from the opposition Congress party but also from dairy unions in Madhya Pradesh, who fear Amul will eclipse the local brand, Sanchi, which has long been almost synonymous with the state's dairy business. The Congress demanded a 'white paper' on the deal, with state party president Jitu Patwari asking which 'Gujarat lobby' the state government intended to benefit and whether the agreement was aimed at benefiting Gujarat's Amul at the cost of MPCDF's milk brand, Sanchi. 'The NDDB's administration of milk federations in MP would rob the local milk cooperative movement of its soul. It's not a business of milk but of democracy and self-reliance of local milk cooperative committees, too,' said Patwari. The Congress has also accused the state government of taking decisions unilaterally without consulting farmers. The government's decision also faced stiff resistance from milk unions in Madhya Pradesh. Already upset that there have been no elections in any of the unions except Indore for decades, union leaders demanded that the government fix Sanchi's problems instead of bringing in outside players. Many were angry because soon after the signing of the Memorandum of Understanding (MoU) with NDDB, the Madhya Pradesh government handed over administrative control of MPCDF to NDDB. Tawar Singh Chouhan, the last elected representative of the Indore Dairy Sangh, was among those who vehemently opposed Amul's entry into Madhya Pradesh. 'If the government had proceeded to bring in Amul with their plans to amend the Cooperative Societies Act, we were prepared to go to court. But now, when the agreement has been made with NDDB, we are still struggling to get our hands on a copy of the agreement. The day we get it, we will approach the court,' he said. He added that the Indore Dudh Sangh had sought a loan from NDDB about three months ago, but the organisation didn't help. 'We approached NDDB, but it didn't help us. So we used our own fixed deposit and put up a milk powder producing plant,' he said. Tanwar added that the Indore Dudh Sangh has been turning a profit and the government should get NDDB to first improve the functioning of Gwalior and Jabalpur, which were loss-making, instead of handing everything to them. Also Read: MP forest dept to use low-altitude helicopters to herd crop-raiding wildlife away from farmlands Operation Flood The Madhya Pradesh state dairy federation was set up in 1980 under the Operation Flood programme that promoted the setting up of farmers-run cooperatives following the success of Amul in Gujarat. It began with processing plants in Ujjain, followed by Indore and four other divisions. But over the years, the dairy federation has been hurt by poor marketing, stiff competition from Amul and low infrastructural investment. Today, Madhya Pradesh is the third-largest milk-producing state in India after Uttar Pradesh and Rajasthan, but ranks 11th in packet milk sales in the state. The milk cooperative sector in MP has a three-tier structure. The MPCDF is the apex body that operates the brand Sanchi under which milk and its affiliated products are sold within the state. Sanchi also manufactures ghee and other products, including ice cream. Under MPDCF come the six divisional milk unions covering the six major divisions of Bhopal, Indore, Ujjain, Gwalior, Jabalpur and Sagar (also known as Bundelkhand). These six divisions collectively tap roughly 11,636 villages through their dairy cooperative societies (DCS) to collect milk from farmers. Through the six divisional unions, the milk cooperatives collect roughly 10 lakh litres of milk per day, of which seven lakh litres of packet milk is sold. Of the six unions, those in western Madhya Pradesh—including Indore, Ujjain, Bhopal and Sagar—turn in a meagre profit or break even, while those in Gwalior and Jabalpur have been incurring losses, with growth across all six unions plateauing. 'The cooperatives collect merely 1 percent of the total milk produced in the state. At the same time, it sells less than what it has procured, which means there needs to be work undertaken to not only increase procurement but also enhance its marketing,' a senior MPCDF official told ThePrint. From Amul to NDDB Soon after taking charge as chief minister, Mohan Yadav first chaired a meeting on 10 January 2024 with the officials of the Gujarat Cooperative Milk Marketing Federation, which runs the brand Amul. The government planned on tying up with Amul to improve Sanchi. But since the two were separate brands run by state cooperatives, the move threatened Sanchi's existence. Moreover, Sanchi was already facing direct competition from Amul, a much bigger brand with a presence not just in Gujarat but across India. It has been aggressively expanding in Madhya Pradesh, which has essentially threatened Sanchi's share in both milk procurement and sales. With Amul being a state-registered cooperative in Gujarat's Anand district, it ideally required a No Objection Certificate (NOC) from the Madhya Pradesh government to procure milk from federations in the state. Instead, Amul has been procuring milk from farmers in Madhya Pradesh directly through its agents and a private dairy. It has also set up milk processing units with the capacity to process 5 lakh litres of milk in Ujjain, the chief minister's home district. 'There were three scenarios, either the MP milk cooperatives were fixed in-house with the state government providing for funds, the second was tying up with Amul or the third option was roping in the National Dairy Development Board (NDDB), which is an expert body,' a Madhya Pradesh government official told ThePrint. The road ahead for NDDB The Madhya Pradesh government isn't deterred by the criticism. It is aiming to increase the footprint of district cooperative societies across the state through NDDB. Of the 23,124 village panchayats in the state, dairy cooperative societies are active in merely 6,088 village panchayats, which is 25 percent of the total village panchayats. Sanjay Govani, general manager of NDDB, told ThePrint that NDDB is working out a yearly plan to gradually reach 9,000 panchayats in the next year and all of them over the next five years. Govani said NDDB will also be working to reach out to consumers who purchase loose milk instead of milk packets. 'In Madhya Pradesh, the sale of packet milk—including all brands combined, be it Sanchi, Amul, Mother Dairy or others—is only 10 percent of the total milk sold,' Govani said. 'The remaining market is for loose milk. If we can convey to people the benefits of pasteurised milk, that itself will tremendously increase sales of milk without cutting into each other's market,' he added. NDDB will also be hiring 50 to 60 senior managers, who would be paid through NDDB, to transform Sanchi. The minister for animal husbandry, Lakhan Patel, said NDDB would continue with the brand name Sanchi and NDDB was working to improve the quality of products while equipping the state with better infrastructure. According to Govani, market studies by NDDB show a strong attachment to the Sanchi brand in Madhya Pradesh, which NDDB is working to deliver upon. The Madhya Pradesh government has partnered with NDDB to expand the cooperative brand of Sanchi beyond the state. But many others are still skeptical of NDDB's capacity to transform Madhya Pradesh's milk cooperatives. 'One of the biggest problems faced by Sanchi was its poor marketing. It is easier to increase village committees and collect milk, but we are yet to see how NDDB plans to increase milk sales across MP over the next five years that it will be holding operations,' said Girish Paliwal, who is affiliated with the Bhopal Milk Union. 'It is too soon to comment; for now, it is just wait and watch.' (Edited by Sugita Katyal) Also Read: Madhya Pradesh DGP's order directing cops to salute MP, MLAs draws censure from both Congress & BJP
The Hindu
12-05-2025
- Business
- The Hindu
Committee to be formed for amendments to Cooperative Societies Act in Maharashtra, says CM Fadnavis
Maharashtra Chief Minister Devendra Fadnavis on Monday (May 12, 2025) announced the formation of a committee to look into amendments to the Maharashtra Cooperative Societies Act, 1960. 'The existing Cooperative Societies Act needs to evolve with times. To do so, new chapters related to each sector will be included in the law,' Mr. Fadnavis said. Union Minister of Road Transport Nitin Gadkari recommended the formulation of a new law for the cooperative sector in the State to factor evolving economic conditions and market competition. Mr. Gadkari also suggested a detailed study to examine the socio-economic impact of the cooperative movement in the State. 'The capital market is so huge. The government should give it a push. The organisation which works well — let them sell the stock in the market. If they are doing well, their share value will increase; otherwise (it will) fall,' Mr. Gadkari said, addressing a seminar organised by the Maharashtra State Cooperative Bank. 'There is no alternative to it,' Mr. Gadkari said, hailing capitalism. Mr. Fadnavis gave China as an example. 'With time, ideologies dominating politics gradually became weaker. So, with time, we should adapt. Earlier, communism was the fashion, now everything [has] disappeared,' Mr. Fadnavis said, adding that China still had a 'red flag' (a reference to communism) but accepted liberal economic thinking, leaving behind Marxist ideology for the sake of the development of the country. Impact study Mr. Gadkari reflected on the image of the cooperative movement outside Maharashtra, stating that the story of the cooperative sector was 'image versus reality, ground reality versus perception'. He gave the example of the Gujarat-based inter-State Madhavpura Mercantile Cooperative Bank. 'The bank was defunct and brought the name to the cooperative sector, but only bad things are remembered. So, it is important to conduct a study of the socio-economic impact of the cooperative movement and understand the impact that credit societies, housing societies, consumer societies, and urban cooperative banks made,' Mr. Gadkari said, adding that this would enhance the contribution of cooperative societies to agriculture at the national level. '22% to 24% of GDP comes from the manufacturing sector. The services sector contributes 52% to 54% to the GDP, generating maximum GST (Goods and Services Tax). The agriculture and rural development sector is on third [position], contributing only 12% [to the GDP] despite employing 60% of the population,' Mr. Gadkari said. Almost 30% of the population migrated to cities in search of better income and education, he said. 'The cooperative sector has helped people in rural areas arrange capital for small businesses like e-rickshaws, vegetable sellers, or tea stalls, which is impossible to receive from national banks as the financial amount is meagre,' the Union Minister said. He cited the example of Kolhapur district, where per capita income is highest owing to the production of milk, and the presence of sugar factories. 'Kolhapur produces 70-80 lakh litres (of milk), which has brought prosperity to villages. On the other hand, Vidarbha lacks such milk production. The cooperative sector can uplift villages. A ₹750 crore-worth Mother Dairy plant has been established in Nagpur, Vidarbha. If we reach 50 lakh litres (output) in the next three years, farmers' suicides are likely to stop,' Mr. Gadkari said.
Hans India
12-05-2025
- Business
- Hans India
Panel will be set up to make necessary changes in Cooperative Act: Maha CM
Chief Minister Devendra Fadnavis on Monday announced that a committee will be formed to suggest the necessary changes in the Cooperative Act. 'There is a need to make changes in the current Cooperative Societies Act in line with the times. The work of providing justice to every entity related to the cooperative sector should be done through the Cooperative Act. "For this, new chapters related to each sector will have to be included in the law. For this, necessary changes will have to be made in the Cooperative Act. A committee is being formed for the necessary changes in the Cooperative Act,' he said in his speech at the symposium on the occasion of International Cooperative Day organised here by the Maharashtra State Cooperative (MSC) Bank. The CM has responded to the observations made in this regard by Union Minister Nitin Gadkari, who in his speech on Monday had made a strong recommendation that the state government needs to craft a new law for the cooperative sector in the changing situation. Stating that cooperative banks have adapted to modern technology and brought about radical changes in the banking sector, CM Fadnavis said, 'Cooperative banks have adopted a modern technological banking system along with the core banking system. Cooperative banks are providing all the services useful to the customers. Due to this, cooperative banks have survived during the period of 'fiscal consolidation'. Cooperative banks have done a great job during this period too. The uprising against moneylenders in Supe in Pune district on May 12, 1875 marked the beginning of the cooperative sector. Today, 150 years have passed since this historical event.' 'Prime Minister Narendra Modi has launched a separate Ministry of Cooperatives for the first time at the Centre. Through this ministry, the cooperative movement is being empowered across the country. Cooperatives are being empowered across the country through the Central Government. This is giving a boost to the rural economy. "With the help of the World Bank, training is being provided to cooperatives in 10,000 villages and their business models are being developed. The World Bank has also expressed satisfaction for this work and this has given a new start to Agri Businesses,' said the chief minister. He said that the cooperative sugar factories are also producing by-products along with sugar production and this has helped them survive global competition. 'There are complaints that electricity rates are making it difficult for spinning mills operating on a cooperative basis to survive in the global competition. The government also provides subsidies for electricity. Therefore, all spinning mills are being converted to solar energy,' he said, adding that this will solve the biggest problem of electricity for spinning mills. CM Fadnavis further stated that processing industries should also be helped through the cooperative sector. 'Nearly 50 per cent of the total cooperative societies are cooperative housing societies. By amending the Cooperative Act, a separate chapter has been included for cooperative housing societies in the past. Through this, the system of cooperative housing societies is being established. A new scheme has been brought for cooperative societies for self-redevelopment. The state government is giving them 17 different types of concessions. Due to the strengthening of cooperative housing societies, citizens are getting their rightful homes in Mumbai itself. A committee has also been formed under the chairmanship of MLA Praveen Darekar regarding self-redevelopment of cooperative housing societies,' he added. He announced that a positive decision would be taken after a study to carry out the state government's transactions on a large scale through cooperative banks. Meanwhile, Deputy Chief Minister Eknath Shinde asserted that the cooperative sector will play a major role in India's ambitions of becoming a superpower. 'After the establishment of the Ministry of Cooperation at the Centre, there has been a wave of reforms in the cooperative sector in the country. Rural Marts are being set up in rural areas with the help of NABARD. The cooperative movement has gained more strength due to Kisan Credit Card and Micro ATM. This is giving a boost to the rural economy to a large extent. Maharashtra Cooperative Bank is the largest bank in the cooperative sector in the country with a turnover of Rs 62,000 crore,' said Dy CM Shinde. Dy CM Ajit Pawar said a revolt against moneylenders took place in Supe from Pune district 150 years ago, which was the beginning of the cooperative sector. 'Today, the cooperative movement has come a long way. However, this movement needs to be strengthened to face future crises and challenges,' he added. He suggested that the Maharashtra State Cooperative Bank should prepare a report on the history of the cooperative movement so far.
The Hindu
24-04-2025
- Politics
- The Hindu
No confidence motion in KSCARD Bank passed, but declaration of results put on hold
The motion of no confidence moved by a section of members against a director board of the United Democratic Front (UDF)-governed Kerala State Co-operative Agricultural and Rural Development (KSCARD) Bank was passed 40-37 on Thursday. However, the declaration of results or any further action will be subject to the Kerala High Court verdict on a case regarding the validity of Rule 43C recently added by the State government to the Kerala Cooperative Societies Rules providing for 'motion of no confidence' against managing committees of cooperative societies and banks by the general body. Conveyed objections The director board has, meanwhile, conveyed their objections to the court regarding the votes cast by the representatives of the Kattakada and Vadakara co-operative agricultural and rural development banks, bank president C.K. Shajimohan said. Earlier this week, the director board of the bank had accused the State government of aiding the Communist Party of India (Marxist) [CPI(M)] attempts to wrest control of the UDF-governed bank. The director board, which has a UDF majority, has maintained that neither the Cooperative Societies Act nor the bylaw of the KSCARD Bank provides for no confidence motion. The bylaw clearly says that an elected committee stays in power for five years.
The Hindu
21-04-2025
- Business
- The Hindu
Govt. aiding CPI(M) attempts to wrest control of KSCARD Bank, allege bank president and board of directors
The director board of the Kerala State Co-operative Agricultural and Rural Development Bank (KSCARD Bank) has accused the State government of aiding the 'undemocratic' attempts of the Communist Party of India (Marxist) [CPI(M)] to wrest control of the UDF-governed bank. Bank president C.K. Shajimohan told reporters here on Monday that a recent addition to the Kerala Cooperative Societies Rules specifically targeted KSCARD Bank. The new Rule 43C provides for 'motion of no confidence' for the removal against the managing committee of cooperative societies and banks by the general body. In the latest development, the Additional Registrar (Credit), Office of the Registrar of Cooperative Societies, has issued a notice on the strength of this rule for convening a meeting on April 24 to discuss a no confidence motion moved against the governing committee of the bank. 'Neither the Cooperative Societies Act, comprehensively overhauled by the government some months ago, nor the bylaw of the KSCARD Bank provides for such an action. The bylaw clearly says that an elected committee stays in power for five years,' Mr. Shajimohan said. The State government has displayed unwarranted haste in pushing the amendment through. Although the bank management had filed an objection within the stipulated 15 days, it was not heard, he said. United Democratic Front (UDF) members have a majority in the 18-member board of directors. Prior to the election of the current management, the bank was under an administrator. Mr. Shajimohan went on to add that, unlike cooperative banks managed by the CPI(M), the KSCARD Bank has not drawn criticism for inefficiency or financial irregularities.
