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Cooperative Movement and Department of Cooperation

A Cooperative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. It is based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. It is ideology driven and value based institution with a set of Internationally recognized and accepted seven Principles of Cooperation

As an institution system for socio-economic development, the role of the Department of Cooperation is that of a facilitator working towards furthering the cooperative movement in the State. It has authority to organize, promote cooperative societies, provide management guideline; conducts audit of the cooperatives and settle disputes.


Sikkim’s History of Cooperative Movement and Present Status

To speed up state’s socio-economy, The Early account of the Cooperative Movement started with the enactment of Sikkim Cooperative Societies Act 1955. Under the Act, Consumers’ cooperatives mostly managed by Ex-soldier men and agricultural cooperatives supported under state’s plan were promoted. After the State joined the mainstream, the 1955 Cooperative Act was repealed and replaced by a comprehensive Sikkim Cooperative Societies Act, 1978 followed by Sikkim Cooperative Societies Rule, 1981. Milk cooperative network on Anand Milk Model with Sikkim Milk Union at the Apex Level is being promoted. A chain of consumer cooperative societies under Public Distribution Scheme (PDS) of Govt. of India, Sikkim State Cooperative Supply and Marketing Federation with village MPCS as members for farm input supply, consumer distribution, farm output marketing, credit disbursement and deposit mobilization is also being set up. The Sikkim State Cooperative Bank is also being organized and actively promoted. The Sikkim State Cooperative Union organized and established in 2002 is being promoted to progressively develop standard of the general people in cultivating cooperative ideals.

After 1994, the cooperative bank is strengthened and brought into operation. The erstwhile 35 MPCS were reorganized with one MPCS in each of the 166 existing Gram Panchayat Units. The Sikkim State Cooperative Union was set up and being strengthened. The labor contract and construction cooperatives are vigorously being promoted and keeping in mind the broad policy priorities of the Govt. to concentrate development of economy on areas like tourism, medicinal herb plantation, livestock farming including dairy and hydro power generation, floriculture and orchid farming. The State has proposed to promote producers’ cooperatives rather than continuing with the traditional consumerism form of economic development concept. The Cooperation Department is also suitably expanded, strengthened and needful extent of decentralization done.

As on 31st March 2007, there are 591 cooperatives of which 5 are apex level cooperatives in a two-tier cooperative structure. The total Govt. and individual /institutional members shareholding in their respective cooperatives is Rs. 1391.45 Lakhs. The total household on cooperative membership enrollment is 52629 while the total cumulative cooperative sector working capital stands at Rs.4787.37 Lakhs.