The latest data on cooperative societies in Jammu and Kashmir presents a troubling picture: nearly one-third of registered cooperatives are non-functional. Even more striking is the concentration of defunct units in urban centres like Srinagar and Jammu. With over 63 per cent in Srinagar and 58 per cent in Jammu lying inactive, the districts emerge as the poorest performers-an anomaly that demands urgent scrutiny rather than routine administrative acknowledgement. The cooperative movement in India has historically been a powerful instrument of socio-economic transformation. Rooted in principles of collective ownership, shared risk, and democratic functioning, cooperatives once enabled communities to achieve what individual efforts could not. From housing societies in urban pockets to agriculture-based collectives in rural belts, these institutions delivered tangible outcomes-often bridging gaps left by conventional governance structures.
Against this backdrop, the current decline raises fundamental questions. Why are such a large number of cooperatives defunct, particularly in districts with relatively better access to infrastructure, markets, and administrative oversight? The situation in Srinagar and Jammu is especially perplexing. As the capital cities with higher institutional reach, they should ideally serve as a model for cooperative success rather than a case study in dysfunction. Equally puzzling is the absence of reported financial irregularities, fund diversion, or audit red flags.
The Government has consistently extended support to the cooperative sector, including financial assistance and institutional backing through a dedicated department. The presence of a structured administrative ecosystem should, in theory, prevent such widespread inactivity. That it has not done so signals systemic bottlenecks-be it bureaucratic inertia, lack of member participation, leadership deficits, or outdated operational models. The Cooperative Department must undertake a district-wise diagnostic exercise to identify reasons behind inactivity. Lessons can be drawn from past audit-driven scrutiny of NGOs conducted. A similar departmental exercise in the cooperative sector could help restore credibility and functionality.
Unlike NGOs, cooperatives are structured for economic activity-be it farming, credit, housing, or small-scale industries. With targeted reforms and a renewed policy push, they can once again become engines of inclusive growth. The priority should be twofold: revive viable societies through handholding and reform, and rationalise or dissolve those beyond recovery. The cooperative model remains still relevant, perhaps more than ever, in an era demanding community-driven development. What is needed now is not just support, but sustained oversight, innovation, and accountability to unlock its dormant potential.
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