On August 9, 2022, Union Minister Amit Shah, Ministry of Cooperation, e-launched the onboarding of cooperatives on the Government e-Marketplace (GeM) portal in New Delhi, Delhi. The programme was organized by the Ministry of Cooperation, the National Cooperative Union of India (NCUI), and GeM.
- A total of 589 cooperatives have been selected as being eligible for onboarding on GeM.
Dignitaries
Union Minister Piyush Goyal, Ministry of Commerce and Industry (MoCI), Union Minister of State (MoS) B.L. Verma, Ministry of Cooperation & Ministry of Development of North Eastern Region (MDoNER) and the NCUI President Dilip Sanghani.
Significance
On August 9, 2022, another historic day in India took place, especially for the cooperative sector, as cooperative societies in India were granted access to GeM.
- On August 9, 2016, the MoCI launched the GeM to create an open and transparent procurement platform for government buyers.
- On August 9, 1942, Mahatma Gandhi initiated the Quit India Movement (QIM) to protest British rule.
According to the Gandhian principles embodied in the Indian Constitution’s Directive Principles of State Policy (DPSP), Article 43 states that: The State shall endeavour to promote cottage industries on an individual or co-operative basis in rural areas.
Highlights:
i.The onboarding of cooperative societies/banks will be done in a phased manner.
ii.In the first phase, cooperative societies/banks with turnover/deposits of more than Rs 100 crore as per the latest financial statement and with an A grade audit rating (wherever applicable) are being taken up for onboarding.
iii.Cooperation Ministry made the National Cooperatives Union of India(NCUI) the nodal agency to facilitate the onboarding of cooperatives and coordination with the GeM authorities.
What are Cooperatives?
Cooperatives are people-centred enterprises owned, controlled and run by and for their members to realise their common economic, social, and cultural needs and aspirations.
- In India, nearly 8.54 lakh cooperatives with a membership of 29 crore purchase goods and services on the open market.
- These cooperatives will have access to goods and services at competitive costs upon onboarding.
Government e-Marketplace (GeM) Portal
GeM is a one-stop portal that offers economies of scale by facilitating online procurement of goods and services.
- It is available to all government buyers, including central ministries and public sector enterprises.
- The GeM platform has seen economic activity of Rs. 2,80,000 crore during the last six years.
Key Developments in the Cooperative Sector
i. On June 1, 2022, the Union Cabinet approved the decision allowing cooperatives to be registered as buyers on the GeM platform.
ii.All qualified cooperatives with a turnover and deposits of Rs. 100 crore would be able to place orders on the GeM portal in the first phase.
iii. Recently, the Ministry of Cooperation designated NCUI as the nodal agency for facilitating onboarding of cooperatives and coordinating with GeM authorities.
Major Highlights of the Event
i. The GeM portal will be a beneficial platform for the growth of the cooperative sector and performs a vital role in increasing transparency in government procurement.
ii.Cooperatives are encouraged to begin preparing for supply registration on GeM in order to increase their market as the majority of government units purchase through GeM.
- An appeal was made to the NCUI to expand marketing of cooperatives using GeM.
iii. Due to the lack of an existing database, the Ministry of Cooperation is working to create one on a national scale that would include various categories of cooperatives.
iv.An export house is also being set up to provide a platform for export from cooperatives across India, with work scheduled to be completed by December 2022.
v.The government is revising the Multistate Cooperative Act and has decided to computerize all Primary Agricultural Credit Societies (PACS).
Note:
- Amul, an Indian dairy state government cooperative society based in Anand, Gujarat, has a turnover of Rs. 60,000 crore and 20 lakh women members.
- On July 2, 2022, the 100th International Day of Cooperatives (CoopsDay) was celebrated.
Recent Related News:
In May 2022, GeM, Common Services Centers (CSC) e-Governance Services India Limited, a Special Purpose Vehicle (SPV), and the Department of Posts, Ministry of Communications (MoC), have signed a Memorandum of Understanding (MoU) for the advocacy, outreach, mobilization and capacity-building of last- mile government buyers, sellers, and service providers in public procurement.
The MoU was conceived following the successful integration of GeM and India Post on May 5, 2022.
About the Ministry of Cooperation:
Union Minister – Amit Shah (Gandhi Nagar Constituency, Gujarat)
Minister of State (MoS) – B. L. Verma
