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Budget Gives A Boost To The Cooperatives

Published: February 7, 2023

The budget of 2023 was a stepping stone towards the strengthening of the cooperative sector in India. There are many provisions made for the same. The cooperative sector made a grievance regarding the discrimination made on them.

However, the provisons and a concession has been given to the coopretives. Though the cooperatives have received the preferencial treatment by giving them lower rate which is on par with the private companies. The opportunity will be given to all the sugar co-orperatives as well which has made an old claim regarding the purchase of the sugar industry. There is an increase in the Primary Agricultural Credit Sources (PACS)  and the Primary Coorperative Agriculture and Rural Development . This is to withdraw cash from the existing limit of RS.20,000 to Rs.2 lakhs.

There is a TDS applicable on an annual basis by PACS and PCABRD worth Rs.3 crore. This was a relief for the PACS as they were still grapping with the TDS ossues. The government has plans with decentralizing a strong capacity  in order to establish and promote businesses for PACs and other primary establish the state-of-the-art infrastructure and the godowns. This provides various services to the members of the co-orperatives. This will help the farmers store their productions and might get higher sales at the right time. A new sub-scheme has been introduced by the PM named Mastya Sampada Yojana in the budget of 2023. This gives an outlay of RS.6000 crore that helps majorly in the fisheries cooperatives, fish vendors and micro and small enterprises that enhance and also expand the businesses activities daily

This also improves value chain in an effective manner and expand the market to new heights. This package will benefit the weaker and the under-developed areas. Today, there are 8.45 credit and non-credit socities. There are 90,000 PACS with a dairy co-operative of 1,15,956 dairy cooperatives and 23,670 fisheries co-operatives. Through the budget, the government aims to promote and also form primary credit, fisheries. Dairying and multi-purpose co-operative purpose in the Panchayats and the villages is quite challenging and requires a support for promotion of new cooperatives and making them self-sustainable is the main goal.

There are many opportunities for the cooperative sector so that they may grow and benefit from the budget. The Pradhan Mantri Kaushal Vikas Yojana provided skill to the youth and will provide opportunities to the youths to generate employment. The budget also recognizes the cooperative models and there is a promotion of the corporative based economic development which are for small and marginal farmers mainly. There are also initializations for computerization of PACS with an outlay worth Rs.2,516 crore with bye-laws and enables the various purposes of PACS. This will help in the development of a national opportunities. There are other initiatives which include mapping co-operatives, setting up a new multi-state co-operative society in the field of seed, organic farming and also exports.

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