TThe politics of the National Cooperative, 2025, revealed by the Minister of Home and the cooperation of AMIT Shah in July, caused a sharp reaction from Keraral, which has a rich tradition of incubation and maintaining teams. Since the government of Bharatiya Janata (BJP) has created the Ministry of Cooperation under Mr. Shah in 2021, Kerala was cautious by what he describes as unfounded and unconstitutional entry into the state territory.
This policy opened a new battlefield in a lengthy conflict between CPI (M)-Leva Democratic leading government in Kerala and a center over cooperative federalism and just sharing financial resources. The left government constantly followed the steps of the government of Modi with respect to the sector of the cooperative with a deep suspicion. The extensive network for cooperative sectors Kerala has public support on the local network, especially among the rural population, including farmers, and manages considerable financial wealth. This policy has added fuel to the claim that it is only a BJP Lest that would cause control of this network within the larger political goals of Saffron in Kerala.
Soon after the opening of politics, VASAVAN, the State Minister of Cooperation, described it as “unconstitutional” and harmful to the interests of the cooperative. Although the policy of national cooperation claims to adhere to the principles of co -operative federalism, the document ignores the constitutional edict that cooperative companies are a state entity as part of the entry of 32 of the State List in the seventh schedule of the Constitution, he said. Kerala was similar to the center when the Center tried to adopt a law on multi -house companies (amendment) in 2023.
Organizations and trade unions in the cooperative sector also responded to this policy. At the recent Convention of the Association of the Primary Agricultural Society of Keral, she adopted a resolution that condemned this policy as a challenge for the concept of federalism. Keral Cooperative Union has described the Cooperative Union as a “unconstitutional step” by the Center to gain control of the sector and give it to businesses. When promoting politics, BJP has its deposits worth 2.94 GBP Lakh Crore in institutions for cooperative sectors in Kerala, the KCEU said.
Kerala’s teams date back to the beginning of the 20th century in Cochin, Travancore and Malabar. After the establishment of the State in 1956, the 1951 Travancore-Cochin Act was replaced by the 1969 Keral Act. Since then, the cooperatives have taken a long way and expanded their influence on all areas of life. The primary cooperatives serve as the main system of loan support in the Kerala economy. They have considerable influence and financial increase.
A few years ago, the government of Kerala merged cooperative banks at the level of districts with the Kerala State Cooperative Bank (Kerala Bank). This was done as part of a political decision to transfer a three-stage cooperative credit structure-re-casting PAC, a district cooperative bank and the state cooperative bank-the two-stage system.
By the way, the decision of the Center for the Country Cooperative Center came at a time when several cooperative banks and companies in Keraral came in serious problems over the accusations of embezzlement and non -non -failure of depositors. For example, fraudulent accusations concerning the cooperative bank of Karuvanur Service Bank in the Thrissur district gave the State Government CPI (m) to the defensive state government. With the credibility of the sector in danger in 2023, the Act on Ceral’s cooperative companies revised and introduced guarantees for connecting spaces and increased public confidence.
What the future applies to this policy and the stir between the center and the state is to be seen. However, Keraly teams, considered rural structures for decades, are at the crossroads today. Accelerated urbanization, changing employment aspiration between youth and seismic shifts that happen in sectors such as energy, transport, science and technology and health, have opened newer opportunities for their diversification and expansion. As they evolve and adapt to changing scenarios, it will have a major impact on Keral’s economy.
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Published – August 27 2025 01:48
