The strong network of cooperatives in Rajasthan in terms of credit, milk production, consumer distribution and housing is present. The jurisdiction of the cooperative movement in Rajasthan is provided by Rajasthan State Cooperative Bank (Apex Bank) and Primary Agricultural Credit Societies (PACS). Dairy cooperatives such as Saras Dairy are very important in the countryside. Cooperatives play a major role towards attaining self-reliant villages objectives and rural empowerment.

What is in the News?

• The Rajasthan Cooperatives Societies (Amendment) Act, 2022 was published on 31 October 2022.
• In it, it excludes sub-section (7-A) of Section 28 of Rajasthan Cooperative Societies Act of 2001.

Highlights Of The Amendment

• Previously in the year 2016, there was a provision according to which a member was not allowed to serve more than two consecutive terms on the Board of Directors of a cooperative society.
• They were not allowed to re-contest till a 5 year cooling-off period was over.

By the 2022 amendment, that restriction is lifted:

• Any individual is now able to serve more than two terms in succession as long as they were elected.
• To maintain a measure of continuity in leadership and subscription of the experienced members in cooperative governance.

Context to Inspiration of the Amendment

• Fortifying Democracy in Cooperatives
  • This is because through recurrent contests the cooperative will leave the selection to its electorate.
• Utilizing Experience
  • Members with an extended period of administration experience offer an understanding of administration and industry expertise.
• More Effective Cooperatives
  • The stability of leadership will be beneficial in instituting long-term policies and reforms in the field of credit, marketing, dairy, and housing cooperatives.

Significance

• Political & Social Dimension: Empowers the grassroots by enhancing the opportunities of leadership selection.
• Economic Aspect: An effective leadership can make the rural credit institutions, the dairy cooperatives and the marketing societies more efficient.
• Administrative Continuity: It aids in the maintenance of the stability of policy in cooperative governance.
• Empowerment: Enables co-operative members to make a decision without any imposed limitation.

Criticism & Challenges

• Risk of Leadership Monopolies: The leaders who have been in business may end up monopolizing a particular cooperative at the expense of the new entrants.
• Politicization Potential: This is a possibility of politicization: in Rajasthan the Cooperatives can intersect with the local politics; an aspect that unlimited tenure could compound.
• Internal Accountability: There must be internal checks on the amendment lest transparency is eroded.

Way Forward

• They put term limit policies by convention in informal form by rules of cooperatives by-law to prevent monopolization.
• Enhance cooperative audit, transparency and accountability.
• Children and women should be encouraged to be part of the cooperative elections so as to balance them.
• Train existing and new cooperative leaders using training programs under RAJFED, RCDF and NABARD to upskill.

Conclusion

The objectives behind the Rajasthan Cooperative Societies (Amendment) Act 2022 are in line with the interests of the state to bolster cooperative democracy living up to using experienced leadership. Although it improves the prospects of more direct involvement, it is imperative that there be no monopolizing of power and the cooperatives remain a democratic and transparent rural development institution.