Explained: Why Modi govt created a new Ministry of Cooperation; what will it do

The Modi government has created a new Ministry of Cooperation and termed it a “historic move”. The aim behind the decision is to break the stranglehold of politicians in the cooperative sector and help BJP make inroads into rural India.

Cleaning up multi-state cooperative societies that come under the ambit of the Union Agriculture Ministry and breaking the stranglehold of politicians in farm produce and marketing cooperatives appears to be the next big gambit of the Narendra Modi government as it doubles down on reforming legacy practices in the rural economy. It wasn’t without purpose that the creation of a separate Ministry of Co-operation, formed on July 6, was billed as a “historic move” that would help streamline and deepen the development of cooperatives in India.