Sahkar Se Samriddhi: A Boost for Cooperative Institutions, But What About Himachal?
New Delhi/Shimla, November 25 – Prime Minister Narendra Modi emphasized the importance of the 'Sahkar Se Samriddhi' vision today.
As far as Himachal Pradesh is concerned Himachal Pradesh Cooperative Bank has been supporting 659 primary Cooperative Societies in Himachal.
But it has not being able to reach out to the farmers at the village level and remain more or less cooperatives on its records for banking sake not as people's movement, benefiting farmers.
He said the initiative aims to make cooperative institutions self-reliant and robust. Modi's remarks followed Union Home Minister and Minister of Cooperation Amit Shah’s detailed article on reforms in the cooperative sector.
Shah’s article sheds light on how administrative and policy overhauls have revived cooperatives.
It highlights steps taken to strengthen these institutions, making them pillars of economic growth.
The Prime Minister lauded these efforts, reiterating that cooperatives are key to achieving rural prosperity.
National Reforms
The article outlines major reforms. These include simplifying policies and streamlining governance structures.
The government has introduced measures to ensure transparency and accountability in cooperatives. This has encouraged trust and participation among members.
Amit Shah pointed out the success of digital interventions in the sector. Digital tools have made operations smoother and more efficient. They have also helped expand the reach of cooperatives to underserved regions.
Himachal Pradesh: A Missed Opportunity?
While the national focus on cooperatives is encouraging, Himachal Pradesh appears to be lagging behind.
The state has seen some success stories in cooperatives, like the Lahaul Potato Cooperative Society and the Bahali Cooperative Society in Kotgarh. These cooperatives have made significant contributions to the agricultural and horticultural sectors.
The Lahaul Potato Cooperative Society played a leading role in organizing and marketing Lahaul’s renowned seed potatoes, gaining national recognition. But lately it has entangled in controversy and has been losing its sheen.
Similarly, the Bahali Cooperative Society in Kotgarh has been instrumental in empowering apple growers and enhancing their income through collective efforts.
However, such examples remain isolated. There is no consistent or concentrated effort to strengthen cooperative institutions across Himachal. Despite the potential, cooperatives in the state face challenges like inadequate funding, lack of technical support, and limited market access.
Need for Action
Himachal’s reliance on agriculture, horticulture, and rural industries makes cooperatives a natural fit. Yet, the sector remains neglected.
Experts believe that adopting national reforms at the state level could yield significant benefits. Initiatives like digitization, streamlined governance, and financial aid could empower small farmers and artisans.
PM’s Call
Responding to Amit Shah’s post on X, PM Modi said, “The vision of 'Sahkar Se Samriddhi' ensures that cooperative institutions become self-reliant and robust.”
While this is a promising outlook for the nation, states like Himachal need to actively align with this vision.
As the nation celebrates Azadi Ka Amrit Mahotsav, there is a pressing need to revisit and strengthen Himachal’s cooperative landscape.
The success of isolated stories like Lahaul and Kotgarh can serve as models for a broader revival of the sector. Without urgent reforms, Himachal risks missing out on the transformative potential of cooperative.
The Himachal Pradesh State Cooperative Bank (HPSCB) continues to make its presence felt.
Over the past few years, the bank has demonstrated a consistent increase in its financial parameters.
As of March 2023, the bank's total business stood at ₹14,132.72 crore, a significant growth from ₹12,759.26 crore in March 2022.
Additionally, the bank has maintained a strong CASA (Current Account Savings Account) deposit ratio of 70.26%, reflecting its emphasis on low-cost deposits.
HPSCB’s extensive reach includes 217 branches, 23 extension counters, and 659 Primary Agricultural Cooperative Societies (PACS), effectively serving a diverse customer base of over 16 lakh individuals.
The bank has also prioritized fostering long-term customer relationships, particularly with younger demographics, to ensure sustained growth and development.
Furthermore, HPSCB has earned accolades for its efficient risk management practices, reflected in its minimal Net Non-Performing Assets (Net NPA) ratio of 0.28% in FY 2023. Its return on assets (RoA) and return on equity (RoE) further underline its operational efficiency, positioning it as a financially robust institution.
This success story of HPSCB demonstrates the potential of cooperative banking in fostering financial inclusion and supporting regional development.
But bank has failed to promote cooperatives in the state andcits defaulting list is growing because of politicking and professional at the top.
The Cooperative movement needs to be strengthened by promoting new cooperatives.
