Panaji: Goa’s co-operative sector continues to face severe financial distress despite ongoing recovery efforts, with 44% of the state’s 5,611 primary co-operative societies identified by the Ministry of Cooperation as non-functional or under liquidation.
Central ministry statistics presented in Parliament reveal that while 3,165 of the state’s total co-operative societies remain functional, 2,337 are non-functional and 111 are under liquidation.
Furthermore, among the 3,165 functional societies, only 1,813 operate at a profit, whereas 1,352 societies – or 43% – incur losses. This leaves Goa with a significantly higher proportion of non-functional co-operative societies compared to the national average, which stands at 22% for non-functional and liquidating societies combined.
Primary co-operative societies encompass a wide spectrum of institutions, including Primary Agriculture Co-operative Societies (PACS), dairy, fishery, employee credit societies and urban co-operative banks.
To address these systemic challenges, the central ministry disclosed several measures aimed at bolstering performance. Key initiatives include converting PACS, dairy and fishery co-operatives into multi-purpose societies to enhance business diversification, strengthen financial stability and prevent closures by encouraging a broader range of economic activities.
As part of these structural reforms, model bye-laws for PACS, which have been adopted by 25 states, including Goa, allow for more than 25 distinct business activities, improve governance and transparency and ensure greater representation for women, Scheduled Caste and Scheduled Tribe communities.
Additionally, the ministry established the National Co-operative Database (NCD) to identify geographical gaps in co-operative coverage, evaluate performance and foster healthy competition through a newly developed ranking framework.
To revive struggling entities, the central ministry also created a Co-operative Rehabilitation Reconstruction and Development Fund under Section 63A of the Multi-State Co-operative Societies (MSCS) (Amendment) Act, 2023, which provides direct financial assistance for infrastructure improvements, the House was told.
