The Samyukt Kisan Morcha (SKM), a coalition of farmer organizations that led nationwide protests against the 2020 farm laws, has criticized the National Co-operative Development Corporation Act, 2024, calling it “anti-federal” and alleging that it advances a “corporate model of urban-centric development” at the expense of rural cooperative traditions.
The SKM’s statement, issued on Tuesday, argued that the legislation undermines cooperative principles fundamental to Indian agriculture and rural development. The organization contended that the Act’s framework prioritizes centralized urban development models over decentralized, farmer-controlled cooperative structures.
The SKM did not specify particular provisions of the Act that it finds problematic, but its critique reflects broader concerns among farmer groups about the direction of agricultural policy reforms.
What Happened
The National Co-operative Development Corporation Act, 2024, was enacted to replace an earlier ordinance and consolidate the legal framework governing cooperative institutions engaged in development activities. The Act establishes the National Co-operative Development Corporation (NCDC) as a statutory body under the Ministry of Agriculture and Farmers’ Welfare, with a mandate to provide financial and technical assistance to cooperatives in agriculture and allied sectors.
The legislation outlines the composition of the NCDC’s governing body, its functions, and mechanisms for funding and capacity-building support to cooperative societies. It also includes provisions for the registration, regulation, and functioning of cooperatives at the national level.
The SKM’s criticism came in the form of a public statement that described the Act as favoring corporate interests over the cooperative model historically relied upon by rural communities. The farmers’ body argued that the law dilutes democratic governance structures inherent in traditional cooperative models and centralizes decision-making authority.
Why It Matters
The Act’s passage has reignited debates about the role of cooperatives in India’s agricultural economy. Cooperatives, particularly in dairy, sugar, and banking sectors, have long been positioned as alternatives to corporate-dominated supply chains. Farmer organizations fear that the new legislation may shift the balance toward institutional structures aligned with corporate interests rather than grassroots democratic control.
The SKM’s characterization of the Act as “anti-federal” highlights concerns about the balance of power between central regulatory mechanisms and local cooperative autonomy. This aligns with ongoing debates in Indian federalism about the appropriate scope of central legislation in sectors traditionally managed at state or local levels.
The criticism also underscores the continued political influence of farmer organizations, nearly four years after their sustained protests led to the repeal of three controversial farm laws in late 2021. The SKM’s ability to shape discourse around agricultural policy remains significant, particularly as the government pushes for structural reforms in the sector.
Background and Context
The NCDC was originally established in 1961 as a statutory corporation under the NCDC Act, 1961, to promote and finance cooperative enterprises in agriculture and allied activities. Over the decades, it has played a key role in supporting cooperative sugar mills, dairy cooperatives, and other rural enterprises.
The 2024 Act seeks to modernize the regulatory framework governing the NCDC, aligning it with contemporary cooperative governance standards. The government has framed the legislation as a measure to strengthen cooperative institutions through institutional support and capacity building.
However, farmer organizations and cooperative advocates have raised concerns that the Act may dilute the democratic governance structures inherent in traditional cooperative models. They argue that the law’s emphasis on centralized oversight could weaken the autonomy of local cooperatives and reduce farmer participation in decision-making processes.
The SKM, which emerged as a unified platform during the 2020-2021 protests, has consistently opposed policies perceived as favoring corporate interests in agriculture. Its current critique of the NCDC Act reflects a broader ideological divide over the future of India’s cooperative movement.
What to Watch Next
The SKM’s criticism may influence ongoing discussions about the implementation of the Act and potential amendments. Farmer organizations are likely to mobilize support among cooperatives and political parties to press for changes to the legislation.
State governments, particularly those with strong cooperative traditions, may also weigh in on the Act’s provisions. The role of state-level cooperative departments in coordinating with the NCDC will be closely watched, as will any efforts to harmonize the new law with existing state-level cooperative legislation.
Legal experts and cooperative scholars are expected to analyze the Act’s provisions in detail, particularly its impact on the democratic governance of cooperative societies. The response from cooperative federations and unions will be a key indicator of the Act’s reception among grassroots stakeholders.
The government’s engagement with farmer organizations and cooperative leaders on the Act’s implementation will be critical in addressing concerns about its “anti-federal” character. Any dialogue or consultation process initiated by the Ministry of Agriculture will be closely monitored by civil society groups and political parties.
Conclusion
The Samyukt Kisan Morcha’s criticism of the National Co-operative Development Corporation Act, 2024, reflects enduring tensions over the direction of agricultural policy and the role of cooperatives in rural development. While the government frames the Act as a modernization measure, farmer organizations view it as a threat to decentralized, farmer-controlled cooperative structures.
The debate highlights the complex interplay between central regulation, cooperative autonomy, and corporate influence in India’s agricultural economy. As the Act moves toward implementation, the response from cooperatives, state governments, and civil society will determine its practical impact on rural communities.
The SKM’s involvement in the discourse underscores the continued relevance of farmer organizations in shaping policy outcomes, even as the political landscape evolves. Whether the Act can reconcile its modernization goals with the democratic ethos of traditional cooperatives remains to be seen.
Sources:
– The Hindu – National
– https://www.thehindu.com/news/national/farmers-body-terms-national-co-operative-development-corporation-act-anti-federal/article71385491.ece
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Story synopsis gathered from: The Hindu – National — source
