Why in News?

India is consolidating its position as the world’s largest cooperative ecosystem, with the Ministry of Cooperation driving a fresh wave of reforms under the banner of ‘Sahkar se Samriddhi’ (prosperity through cooperation). The push follows the UN International Year of Cooperatives 2025, which spotlighted cooperatives as engines of inclusive growth.

The country hosts over 8 lakh cooperative societies touching nearly every village, and the government is computerising about 63,000 Primary Agricultural Credit Societies (PACS), rewriting their model bye-laws to make them multipurpose, and floating new national-level cooperatives for organics, seeds and exports.

• India has the world’s largest cooperative movement — roughly 8 lakh-plus societies spanning credit, dairy, fertiliser, housing and fisheries.
• The Ministry of Cooperation, carved out in July 2021, anchors the reform agenda with the slogan ‘Sahkar se Samriddhi’.
• About 63,000 PACS are being onboarded onto a common ERP platform linked to NABARD and state cooperative banks.
• New model bye-laws let PACS run over 25 activities — from Common Service Centres (CSCs) and Jan Aushadhi Kendras to fuel outlets and water distribution.
• Three new national multi-state cooperatives for organic produce, seeds and exports aim to lift the primary sector’s value chain.

The development matters in the context of:

• The reforms sit on the durable syllabus theme of cooperative federalism and the constitutional status cooperatives gained through the 97th Constitutional Amendment (2011).
• Cooperatives are central to rural credit, the primary-sector economy and the goal of doubling farm incomes.
• The model is showcased by global brands like AMUL, born of the dairy cooperative revolution.

UPSC Relevance

Prelims Relevance

• Ministry of Cooperation — created July 2021, headed by the Union Cooperation Minister.
• 97th Constitutional Amendment Act, 2011 — added Part IXB and Article 43B (Directive Principle on cooperatives).
• Right to form cooperative societies is a Fundamental Right under Article 19(1)(c).
• PACS — Primary Agricultural Credit Societies, the village-level base of the three-tier short-term credit structure.
• Three-tier credit: PACS → District Central Cooperative Banks → State Cooperative Banks, refinanced by NABARD.
• Cooperatives fall under State List Entry 32; multi-state societies are governed by the Multi-State Cooperative Societies Act, 2002.
• AMUL follows the Anand Pattern; Operation Flood was led by the National Dairy Development Board (NDDB).
• UN International Year of Cooperatives 2025 — theme ‘Cooperatives Build a Better World’.
• New apex bodies: NCOL (organics), BBSSL (seeds) and the National Cooperative Exports body.

Mains Relevance

GS Paper 3

• Role of cooperatives in rural credit, the primary-sector economy and inclusive growth.
• Computerisation of PACS as a lever for financial inclusion and supply-chain efficiency.

GS Paper 2

• Cooperative federalism tensions: cooperatives on the State List versus a Union ministry steering reform.

Essay

• Cooperation over competition: can collective enterprise power inclusive development?
• From village society to global brand — the cooperative as a model of grassroots democracy.

Background and Context

What 'Sahkar se Samriddhi' means

The slogan frames cooperation as a route to shared prosperity, not just a credit mechanism.

• ‘Sahkar se Samriddhi’ is the guiding vision of the Ministry of Cooperation — strengthening cooperatives so growth reaches the last village.
• It targets the primary sector — farming, dairy, fisheries — where cooperatives already pool small producers into bargaining-strong collectives.
• The approach reframes cooperatives as multipurpose service hubs, building on the National Cooperative Policy 2025 rather than single-function lending.
• It builds directly on the visibility from the UN International Year of Cooperatives 2025.

The constitutional and institutional base

Cooperatives sit on a distinct constitutional footing built over decades.

• The 97th Constitutional Amendment Act, 2011 inserted Part IXB (Articles 243ZH–243ZT) and made the right to form societies part of Article 19(1)(c).
• It added Article 43B, a Directive Principle urging the State to promote voluntary, autonomous and democratic cooperatives.
• Cooperatives are a State subject (Entry 32, State List); the Multi-State Cooperative Societies Act, 2002 governs societies spanning states.
• The Ministry of Cooperation (2021) gave the sector a dedicated administrative home, separate from the Agriculture Ministry.

PACS computerisation — the digital backbone

The flagship reform is putting the village credit society online.

• About 63,000 PACS are being migrated to a common ERP software with a national portal and cloud backup.
• NABARD designed the platform; it links PACS to State Cooperative Banks and district banks for real-time accounting.
• Digitisation cuts leakages, speeds loan disbursal and makes audited data available for the first time at scale.
• It is the base layer for turning each PACS into a multipurpose, transparent service point.

Model bye-laws — PACS as village service hubs

New rules let a single society do far more than lend.

• The revised model bye-laws permit PACS to run over 25 business activities.
• A PACS can now host a Common Service Centre (CSC), a Jan Aushadhi Kendra (generic-medicine outlet), a fuel or LPG outlet and a water-distribution unit.
• PACS can serve as procurement and storage nodes and as nurseries for allied businesses.
• The aim is a viable, diversified society that stays solvent and serves the whole village economy.

New national cooperatives for value chains

Three apex bodies extend the model up the supply chain.

• National Cooperative Organics Limited (NCOL) aggregates, certifies and markets organic produce under a trusted brand.
• Bharatiya Beej Sahkari Samiti Limited (BBSSL) produces and distributes certified, traditional and climate-resilient seeds.
• A National Cooperative Exports body channels surplus from cooperatives into global markets.
• Together they let small producers capture more of the value chain, not just farm-gate prices.

Why the cooperative model matters

Cooperatives remain a uniquely Indian engine of grassroots enterprise.

• The cooperative movement touches credit, fertiliser (IFFCO, KRIBHCO), sugar, housing and fisheries — over 8 lakh societies in all.
• AMUL, built on the Anand Pattern and Operation Flood, made India the world’s largest milk producer and is the model success story.
• Cooperatives pool small, scattered producers into scale, giving them bargaining power against larger players.
• They embed economic democracy — one member, one vote — at the village level.

Challenges that persist

The movement carries structural weaknesses the reforms must address.

• Many cooperatives suffer political capture, dormant societies, weak audits and chronic NPAs.
• Regional skew: strong in Gujarat, Maharashtra and the south, thin in the east and north-east.
• Critics warn that a Union ministry steering a State-subject sector strains cooperative federalism.
• Professional management and member awareness remain uneven across the network.

Way Forward

Deepen and professionalise

• Complete PACS computerisation and extend it to dairy and fisheries cooperatives.
• Build professional management cadres and independent audit systems to curb capture and NPAs.

Balance and broaden

• Respect state autonomy so reform stays consultative, protecting cooperative federalism.
• Seed new societies in under-served eastern and north-eastern regions to close the regional gap.

Anchor the push in member education so the ‘one member, one vote’ spirit translates into active, accountable participation rather than dormant rolls.

Conclusion

India’s cooperative network is a quiet giant — over 8 lakh societies reaching where markets and the state often cannot. The Sahkar se Samriddhi agenda tries to modernise this base: digitising PACS, diversifying their business and building national value chains.

The real test is governance. If reforms professionalise management, protect state autonomy and revive dormant societies, cooperatives can become a durable engine of inclusive, primary-sector-led growth — turning a powerhouse of numbers into a powerhouse of outcomes.

UPSC Practice Questions

Prelims MCQ 1

With reference to cooperatives in India, consider the following statements:

1. The 97th Constitutional Amendment Act, 2011 made the right to form cooperative societies a Fundamental Right.
2. Cooperative societies operating within a single state fall under the State List.
3. The Ministry of Cooperation was established as a separate ministry in 2021.

How many of the above statements are correct?

(a) Only one (b) Only two (c) All three (d) None

Answer: (c) All three

Explanation:

The 97th Amendment added cooperatives to Article 19(1)(c), inserted Part IXB and Article 43B. Cooperatives are State List Entry 32. The Ministry of Cooperation was carved out in July 2021. All three are correct.

Prelims MCQ 2

In the three-tier short-term cooperative credit structure, which institution refinances the system at the apex?

(a) Reserve Bank of India (b) NABARD (c) SIDBI (d) State Cooperative Banks

Answer: (b) NABARD

Explanation:

NABARD provides refinance to the cooperative credit structure (PACS → District Central Cooperative Banks → State Cooperative Banks). The RBI is the monetary authority, not the direct cooperative refinancer.

UPSC Mains Questions

1. India runs the world’s largest cooperative movement yet its potential remains unevenly realised. Examine the structural challenges facing the cooperative sector and assess how recent reforms under the Ministry of Cooperation seek to address them. (250 words)
2. “Cooperatives are a State subject, yet a Union ministry now steers their reform.” Discuss this tension in the light of cooperative federalism and the 97th Constitutional Amendment. (250 words)
3. Computerisation of PACS is described as a backbone reform for rural India. Analyse how digitising primary credit societies can advance financial inclusion and supply-chain efficiency. (150 words)

Sources: PIB, Ministry of Cooperation and PIB.

Frequently Asked Questions

Why in News?

The BBNJ Agreement — the treaty on Biodiversity Beyond National Jurisdiction, widely called the High Seas Treaty — remains a landmark in global ocean governance, the first legally binding instrument to protect marine life in the two-thirds of the ocean that lies beyond any country’s control.

Adopted in 2023 as the third implementing agreement under the UN Convention on the Law of the Sea (UNCLOS), it needs 60 ratifications to enter into force; India has signed it, and the race to ratification keeps it firmly in focus for climate, biodiversity and maritime-strategy watchers.

• What it is: a legally binding treaty for the conservation and sustainable use of marine biodiversity in areas beyond national jurisdiction (ABNJ).
• Parent framework: the third implementing agreement under UNCLOS (after the 1994 Part XI and 1995 Fish Stocks agreements).
• Adoption: agreed at the UN in 2023 after nearly two decades of negotiation.
• Entry into force: requires 60 ratifications before it becomes operative.
• Coverage: applies to the high seas and the international seabed ‘Area’ — together about two-thirds of the ocean.
• India’s stand: India has signed the agreement, aligning it with the Kunming-Montreal 30×30 biodiversity target.
• Four pillars: marine protected areas, environmental impact assessments, marine genetic resources and benefit-sharing, and capacity building and technology transfer.

The development matters in the context of:

• Governance gap: until BBNJ, no single instrument could create protected areas or require impact assessments in the high seas, leaving a vast commons largely unregulated.
• 30×30 link: the treaty is the practical tool for extending the Kunming-Montreal goal of protecting 30% of land and sea by 2030 into international waters.
• Common heritage: it tests how the principle of the common heritage of mankind applies to living resources, not just seabed minerals.
• Equity stakes: developing states, including India, want fair sharing of benefits from marine genetic resources and real technology transfer, not just paper commitments.

UPSC Relevance

Prelims Relevance

• BBNJ Agreement as the third implementing agreement under UNCLOS.
• UNCLOS maritime zones: territorial sea (12 nm), contiguous zone (24 nm), EEZ (200 nm), continental shelf, high seas.
• Definition of areas beyond national jurisdiction (ABNJ) — the high seas plus the Area.
• The ‘Area’ as the seabed beyond national jurisdiction, and the common heritage of mankind principle.
• The International Seabed Authority (ISA) — mandate, headquarters at Kingston, Jamaica.
• The 60 ratifications threshold for the treaty to enter into force.
• The four pillars: MPAs, EIAs, marine genetic resources / benefit-sharing, capacity building and marine technology transfer.
• Link to the Kunming-Montreal Global Biodiversity Framework and the 30×30 target.
• The Convention on Biological Diversity (CBD) and the freedoms of the high seas (navigation, overflight, fishing, research).
• Difference between the high seas (water column) and the Area (seabed) in international law.

Mains Relevance

GS Paper 3 (Environment)

• Examine how the BBNJ Agreement closes the governance gap in protecting marine biodiversity in the high seas, and its links to the 30×30 target.
• Assess the challenges of designating and enforcing marine protected areas in areas beyond national jurisdiction.

GS Paper 2 (International Relations)

• Discuss the significance of the BBNJ Agreement for global ocean governance and India’s maritime and blue-economy interests.
• Evaluate the North-South tensions over marine genetic resources and benefit-sharing in negotiating the High Seas Treaty.

Essay

• A strong anchor for essays on the global commons, intergenerational equity and stewardship of shared resources.
• Useful for essays on multilateralism, North-South equity and governing what belongs to everyone and no one.

Background and Context

UNCLOS and the legal map of the ocean

To understand BBNJ you first need the zones that UNCLOS draws across the sea.

• UNCLOS: the 1982 UN Convention on the Law of the Sea is the ‘constitution of the oceans’, setting out rights and duties zone by zone.
• National zones: a coastal state controls a 12 nm territorial sea, a 24 nm contiguous zone, and resource rights in a 200 nm Exclusive Economic Zone (EEZ) plus its continental shelf.
• High seas: the water column beyond the EEZ, open to all states with freedoms of navigation, overflight, fishing and scientific research.
• The Area: the seabed and subsoil beyond national jurisdiction, declared the common heritage of mankind and managed by the ISA.
• ABNJ: the high seas and the Area together — the areas beyond national jurisdiction that BBNJ now addresses.

Why a new treaty was needed

UNCLOS framed the zones but left a yawning gap on protecting living biodiversity out there.

• Two-thirds of the ocean lies beyond national jurisdiction, yet no body could create marine protected areas there.
• Fragmented rules: sectoral bodies governed fishing, shipping or seabed mining separately, with no integrated tool for conservation.
• No EIA duty: there was no consistent requirement to assess the environmental impact of activities like deep-sea mining or bioprospecting.
• Genetic-resource vacuum: rules for accessing and sharing benefits from marine genetic resources were absent, raising equity concerns.
• Mandate: the UN General Assembly launched negotiations to fill this gap, concluding with adoption in 2023.

The four pillars of the BBNJ Agreement

The treaty rests on four interlocking elements, often called its package deal.

• Marine protected areas: a mechanism to establish area-based management tools, including MPAs, in the high seas to safeguard ecosystems.
• Environmental impact assessments: a duty to assess and disclose the likely impact of planned activities in ABNJ before they proceed.
• Marine genetic resources: rules for accessing genetic material from the high seas and for fair and equitable benefit-sharing, monetary and non-monetary.
• Capacity building and technology transfer: support so that developing states can participate in research, conservation and the blue economy.

Common heritage versus freedom of the high seas

BBNJ sits on a fault line between two competing legal traditions.

• Common heritage of mankind: a principle, applied to the seabed Area, that resources belong to all humanity and benefits must be shared.
• Freedom of the high seas: the older idea that the open ocean is free for all states to use, including fishing and research.
• The compromise: BBNJ blends both — keeping high-seas freedoms while layering on conservation duties and benefit-sharing for marine genetic resources.
• Institutional link: the seabed minerals of the Area stay with the ISA, while BBNJ focuses on living biodiversity in the water column and beyond.

Links to CBD, 30×30 and the climate agenda

The treaty is the missing ocean piece of the global biodiversity and climate framework.

• 30×30 target: the Kunming-Montreal Global Biodiversity Framework aims to protect 30% of land and sea by 2030 — unreachable at sea without BBNJ.
• CBD bridge: it extends the spirit of the Convention on Biological Diversity into waters the CBD itself does not directly govern.
• Carbon sink: the ocean absorbs heat and carbon, so protecting high-seas ecosystems is also a climate-resilience measure.
• Migratory species: whales, tuna, sharks and turtles cross jurisdictions, so connected high-seas MPAs are vital to their survival.

India's interests and the road to ratification

A landlocked-sounding treaty has direct stakes for a maritime nation like India.

• India has signed the agreement and frames it within its blue economy and ocean-science priorities under the Ministry of Earth Sciences.
• Equity push: India and other developing states want genuine benefit-sharing from marine genetic resources and real technology transfer.
• Deep Ocean Mission: India’s Deep Ocean Mission and ISA-linked exploration give it a direct interest in fair seabed and high-seas rules.
• Threshold race: the treaty needs 60 ratifications to enter into force, and domestic ratification remains the next step for signatory states.

Way Forward

Accelerate ratification and build institutions

• Reach the threshold: push the remaining ratifications past 60 so the treaty enters into force and its bodies can stand up.
• Operational machinery: establish the Conference of Parties, scientific and technical body, and a clearing-house for sharing data and genetic-resource information.

Make benefit-sharing and capacity real

• Fair sharing: design transparent rules for monetary and non-monetary benefits from marine genetic resources so developing states gain.
• Technology transfer: fund and deliver capacity building so countries like India can carry out high-seas research and conservation.

Enforce conservation effectively

• Connected MPAs: build networks of marine protected areas that track migratory species and ecosystems, not isolated patches.
• Monitoring: pair satellite surveillance and shared science with credible ocean-governance mechanisms to deter illegal and unassessed activity.

Conclusion

A commons finally governed: the BBNJ Agreement extends real, binding protection into the two-thirds of the ocean that long sat in a legal grey zone beyond any flag.

The balancing act: it threads the needle between the freedom of the high seas and the common heritage of mankind, layering conservation and equity onto an open ocean.

Why it matters for India: as a maritime power with deep-ocean and blue-economy ambitions, India’s interest lies in swift ratification, fair benefit-sharing and effective high-seas protection that serves both biodiversity and equity.

UPSC Practice Questions

Prelims MCQ 1

With reference to the BBNJ Agreement (High Seas Treaty), consider the following statements:

1. It is an implementing agreement under the United Nations Convention on the Law of the Sea.
2. It applies to marine areas within the Exclusive Economic Zones of coastal states.
3. It requires 60 ratifications to enter into force.

How many of the above statements are correct?

(a) Only one (b) Only two (c) All three (d) None

Answer: (b) Only two

Explanation:

Statements 1 and 3 are correct: BBNJ is the third implementing agreement under UNCLOS and needs 60 ratifications to enter into force. Statement 2 is wrong — it governs areas beyond national jurisdiction (the high seas and the Area), not within EEZs.

Prelims MCQ 2

Which one of the following is the principle, under UNCLOS, that applies to the resources of the international seabed ‘Area’?

(a) Freedom of the high seas (b) Common heritage of mankind (c) Sovereign rights of the coastal state (d) Innocent passage

Answer: (b) Common heritage of mankind

Explanation:

Under UNCLOS, the seabed and subsoil beyond national jurisdiction — the ‘Area’ — are the common heritage of mankind, managed by the International Seabed Authority. Freedom of the high seas applies to the overlying water column, while sovereign rights and innocent passage relate to national zones.

UPSC Mains Questions

1. The BBNJ Agreement has been called the missing ocean piece of the global biodiversity framework. Examine how it closes the governance gap in areas beyond national jurisdiction and its links to the 30×30 target.
2. Discuss the tension between the freedom of the high seas and the common heritage of mankind in the negotiation of the High Seas Treaty. How does the agreement attempt to reconcile the two?
3. Evaluate the significance of the BBNJ Agreement for India’s maritime, blue-economy and ocean-science interests, and the equity concerns it raises for developing states.

Sources: Ministry of Earth Sciences, Government of India and United Nations (Office of Legal Affairs / DOALOS).

Frequently Asked Questions