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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 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 was started with the enactment of Sikkim Cooperative Societies Act 1955. Under the Act, Consumers’ cooperatives mostly managed by Ex-soldiers  and agricultural cooperatives were promoted. After the State joined the Indian mainstream, the 1955 Cooperative Act was repealed and replaced by a comprehensive Sikkim Cooperative Societies Act, 1978 and  Sikkim Cooperative Societies Rule, 1981. Milk cooperative network on Anand 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. With the policy and dynamic decision of the Govt. the erstwhile 35 MPCS were reorganized with one MPCS in each of the 166 existing Gram Panchayat Units of the State. 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.
 

In 2010, the State Government has initiated the policy to form cooperative societies especially focusing educated unemployed to execute all construction works falls under village Gram Panchayats and Municipal wards worth up to Rs. 3.00 Crores without tender. Similarly, cooperative societies formed by registered contractors and labour including women are eligible for awarding construction works up to Rs. 1.00 Crores of Gram Panchayat and Municipal wards wards without tender. The provision of 10% mobilization advance against work value shall be given on written request to the cooperatives to execute the works. As on March 2012 there are 1961 such GP level construction cooperatives were organized from where 23312 individuals became the members of the cooperatives and out of which  9496 are the women members.  

As on 31st March 2012, there are all together  2654 cooperatives of which  6 are apex level cooperatives in a two-tier cooperative structure. There are all together 85481 individual share holder members of cooperative societies in Sikkim. The total Govt. and individual /institutional members shareholding of the cooperatives is Rs. 2219.49 Lakhs and  Rs 25124.38 Lakhs working capital of the cooperatives. The annual business turnover of Rs. 16365.21 lakhs, loans and advances of Rs. 4192.03 lakhs, banking deposits of Rs. 13898.89 lakhs and execution of construction works amounting to Rs. 14097.85 lakhs awarded to over 500 GP level cooperatives are  major achievement of the cooperatives during 2011-12 Plan period.