Cooperatives in India
Q. Which of the following is/are true regarding cooperatives in India?
1) Cooperatives have not yet been allowed entry into agriculture insurance.
2) Expansion of the telecom infrastructure provides the Cooperatives with means to increase their outreach.- Published on 11 Jul 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 2
- Cooperative farming societies provide a medium for cultivators to enjoy the economies of large-scale farming through pooling of land and management resources.
- Improved connectivity through telecom infrastructure between members and management of the Cooperatives will play a significant role in reducing the response time and opens up tremendous possibilities for improved access to financial services.
- Developments like the Unique Identification (UID) project which provides biometric identity and the focus on financial inclusion agenda by the government provide an avenue for cooperative societies to regain their relevance by becoming active partners in these programmes.
- With the passage of the Insurance Act, Cooperatives have been allowed entry into the insurance, including Agricultural Insurance business. This is a field where Cooperatives have tremendous potential for success, especially if they develop partnerships with other service providers.
