Bill makes cooperative bodies stronger, says Pawar

Agriculture Minister Sharad Pawar on Monday said the Constitution (111th) Bill will not only pave the way for more transparency in the functioning of the cooperative organisations but will also give more say to its members.

Calling the passage of the Bill last week in Lok Sabha a crucial step in India’s cooperative movement, Pawar said large boards of directors in cooperative organisation would be a thing of the past. The ceiling has been set at 21 member. However, with the amendment, the board of directors will also get a representation of two women, one tribal or Dalit and one expert, in addition to 21 members. Pawar noted that the amendment ensures that cooperative bodies function in a democratic, professional, autonomous and economically sound manner.

He was speaking to the Business Standard after addressing the 55th annual general meeting of the Federation of Cooperative Sugar Factories in Maharashtra, which is a representative body of 200 sugar factories. The minister recalled that the Maharashtra State Cooperative Bank (MSCB), an anchor bank for agriculture credit under administrator rule since May 7, had a 55-member board of directors.

“Those in the cooperative sector will have to divide politics and efficient management of cooperative organisation and cannot have more than 21 member board of directors. If any cooperative organisation has to take care of political interest it should do it separately,” he added.

The amendment has restored the supremacy of the general body of the cooperative organisation, he said. “The general body gets enough powers to take necessary decisions with regard to passage of audit as per the recent amendment. Besides, it also ensures more say for members of the organisation.”

Maharashtra Cooperation Minister Harshvardhan Patil said that it would be mandatory for cooperative organisations, especially sugar cooperatives in the state, to carry out cost audit, energy audit and green audit. “The government resolution of making cost audit has already been issued. The resolutions for other two will be issued soon. Besides, all cooperative organisations will have to conduct their annual general body meetings on time or face action,” he added.