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Consider the following statements.
  1. Cooperatives are organisations formed at the grassroots level by people to harness the power of collective bargaining in the marketplace.
  2. Since the areas of operation of Cooperatives are spread across more than one state, the Cooperatives are a concurrent subject under the Constitution of India.
  3. Promotion of Cooperation societies is also a Directive Principles of State Policy under Part 4 of the Constitution of India.
Which of the above statements is/are correct?
  • a)
    1, 2 
  • b)
    1, 3 
  • c)
    2, 3 
  • d)
    1, 2, 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. Cooperatives are organisations form...
  • Cooperatives are organisations formed at the grassroots level by people to harness the power of collective bargaining in the marketplace. This can mean different kinds of arrangements, such as using a common resource or sharing capital, to derive a common gain that would otherwise be difficult for an individual producer to get.
  • In agriculture, cooperative dairies, sugar mills, spinning mills etc. are formed with the pooled resources of farmers who wish to process their produce.
  • Cooperatives are a state subject under the Constitution, meaning they come under the state governments’ jurisdiction, but there are many societies whose members and areas of operation are spread across more than one state.
  • Cooperatives of more than one state are registered under the Multi-State Co-operative Societies Act (MSCS) of 2002. Their board of directors has representation from all states they operate in. Administrative and financial control of these societies is with the central registrar, with the law making it clear that no state government official can wield any control over them.
  • Through the 97th constitutional amendment, Part IXB (The Co-Operative Societies) was inserted into the Constitution. The right to form cooperative societies was included as Right to Freedom under article 19 (1), Part-3 of the Constitution.
  • In addition to this, Article 43-B (Promotion of Cooperation societies) was also inserted as one of the Directive Principles of State Policy under Part 4 of the Constitution of India.
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Consider the following statements. Cooperatives are organisations form...
Cooperatives in India

Statement 1: Cooperatives are organizations formed at the grassroots level by people to harness the power of collective bargaining in the marketplace.

This statement is correct. Cooperatives are voluntary associations of individuals who come together to fulfill their common economic, social, and cultural needs and aspirations. They are formed at the grassroots level to enable individuals to collectively bargain in the marketplace. Cooperatives can be in various sectors such as agriculture, dairy, credit, housing, etc.

Statement 2: Since the areas of operation of Cooperatives are spread across more than one state, the Cooperatives are a concurrent subject under the Constitution of India.

This statement is incorrect. The subject of cooperatives is not specifically mentioned in the Union List, State List, or Concurrent List of the Constitution of India. Therefore, it is not classified as a concurrent subject. The regulation and promotion of cooperatives primarily fall under the purview of state governments. Each state has its own cooperative laws and regulations.

Statement 3: Promotion of Cooperation societies is also a Directive Principles of State Policy under Part 4 of the Constitution of India.

This statement is correct. Directive Principles of State Policy (DPSP) are guidelines for the government to establish a just and equitable society. Article 43 of the Constitution of India states that the state shall endeavor to promote cooperative societies and enable them to function autonomously. This promotes the principles of cooperation and mutual assistance among individuals.

Conclusion: From the above analysis, we can conclude that statement 1 and statement 3 are correct, while statement 2 is incorrect. Therefore, the correct answer is option B (1, 3).
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Consider the following statements. Cooperatives are organisations formed at the grassroots level by people to harness the power of collective bargaining in the marketplace. Since the areas of operation of Cooperatives are spread across more than one state, the Cooperatives are a concurrent subject under the Constitution of India. Promotion of Cooperation societies is also a Directive Principles of State Policy under Part 4 of the Constitution of India.Which of the above statements is/are correct?a)1, 2b)1, 3c)2, 3d)1, 2, 3Correct answer is option 'B'. Can you explain this answer?
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