Central aid for fishermen to be routed through cooperative societies with corporate funding allowed

Thiruvananthapuram: The Central government is preparing for a major cooperative reform aimed at implementing and supporting schemes in coastal regions. As part of this, a decision has been made to convert fishermen’s cooperative societies into multi-purpose societies and grant them approval for undertaking new responsibilities.

To facilitate this transformation, a model bylaw—applicable across the country—has been prepared for fishermen's cooperative societies. The final version will be adopted after considering suggestions from states and union territories.

The model bylaw includes provisions allowing these societies to accept corporate aid for welfare initiatives for both fishers and farmers. This will enable cooperative societies in coastal areas to function as institutions eligible to receive funding from corporate companies under their Corporate Social Responsibility (CSR) funds.

These societies will also be permitted to carry out banking activities with the support of District Cooperative Banks. They will be allowed to accept deposits at interest rates 2 percent higher than what the District Cooperative Banks offer.

Each society will be required to design welfare schemes tailored to the socio-economic and physical conditions of their coastal region and members. Based on this, they can take on additional responsibilities such as conducting soil and water quality testing as authorised agencies. Permissions will also be granted for running fair-price shops, distribution networks, fuel dealerships and agencies of various government-regulated entities.

It remains uncertain how Kerala will respond to this new initiative. The Centre has already implemented the model bylaw for agricultural credit cooperative societies functioning as primary cooperative banks in other states. Kerala is the only state that has not adopted it. All other states have accepted the bylaw, enabling the Centre to formulate projects worth ₹27,000 crore exclusively for societies that have complied—opportunities Kerala has thus far missed.

Fishermen’s cooperative societies function under the state’s Fisheries Department. Without accepting the model bylaw, Kerala may forfeit its share in several Central schemes. There are over a thousand such societies in the state.

Currently, 10 multi-state cooperative societies under Central control are functioning across the country, though none of them have yet established operations in Kerala. If state-level societies remain outside the purview of Central schemes, there is a strong likelihood that multi-state cooperatives will expand their presence in the state.