Context: Recently, Lok Sabha the Multi-State Cooperative Societies (Amendment) Bill, which seeks to strengthen cooperatives by making them transparent and introducing a system of regular elections.

Key Highlights of the bill

Formation of three new multi-state societies

• The first society will act as a platform to export the produce of the farmers.

• The second society will associate small farmers with the production of seeds and through these farmers with 1 acre of land will also be able to associate with seed production.

• The third society will provide suitable prices to the farmers for their produce by marketing their organic products across the country and the world.

Elections

• Provision has been made for the Election Authority to implement electoral reforms to conduct fair elections.

• The authority will be as powerful as the Election Commission and there will be no government interference in it.

• If one-third of vacancies are created on the board, a provision has been made to hold elections again for the vacant posts.

Board meetings

• The chairman, vice-chairman and members of the committees will be required to call board meetings in three months.

Transparency

• Provision has been made to give majority to the equity shareholders to bring transparency in the governance of the cooperative society.

Representation

• Reservation to one Scheduled Caste or Scheduled Tribe and one woman in the committees has been provided in this bill, which will increase representation of these sections in the committees.

Other provisions

• Non-compliance of various constitutional requirements can lead to disqualification of the board members.

• No one will be given a job in blood relation or distant relation in the recruitment process of employees.

• Right to Information has also been included in this bill.

• Government has planned to set up a cooperative university for cooperative education.

• The National Cooperative Database will also be started.

• The new national cooperative policy will be formulated which will put the map of cooperatives in front of the country for the next 25 years.