Sikkim CM: Cooperatives key to economic growth and self-sufficiency

The state-level conference on promotion and development of cooperatives was held at the Sikkim State Cooperative Union (SICUN) in Assam Lingzey.

Organised by the National Cooperative Union of India (NCUI) in collaboration with the Sikkim State Cooperative Union and the Cooperation Department, Government of Sikkim, the event brought together policymakers, cooperative leaders, and stakeholders to discuss ways to strengthen the cooperative movement in the state.

Addressing the gathering as the chief guest, Sikkim Chief Minister Prem Singh Tamang highlighted the significance of cooperatives in boosting the rural economy. He said that the government is committed to revitalizing the cooperative sector by creating a One-Stop Economy Unit, which will make cooperatives more dynamic, inclusive, and self-sufficient.

"Cooperatives are not just economic institutions; they are social movements that bring people together for shared prosperity. Under the vision of Prime Minister Narendra Modi and with the strong support of the Union Minister for Cooperation, Amit Shah, cooperatives are emerging as powerful, competitive, and sustainable economic entities," the chief minister said.

He noted that the Sikkim Cooperative Department has fully embraced the central government’s initiatives. Various programs are being implemented to support cooperative societies, particularly those in agriculture, dairy, and organic farming.

One of the key initiatives is the digitization of the Registrar’s Office, which will bring greater transparency and efficiency to cooperative governance. Additionally, the state government has signed a Memorandum of Understanding (MoU) with the National Cooperative Organic Limited (NCOL) to promote organic products such as ginger, turmeric, and large cardamom. This initiative is particularly beneficial for farmers in the border regions of Sunaulu, Samariti, and Samanthi, aligning with the government’s vision of strengthening rural economies.

To further support cooperatives, the government has allocated budgetary assistance in the form of:

• Infrastructure development grants
• Managerial support for Primary Agricultural Credit Societies (PACS)
• Transport and marketing assistance
• One-time financing grants for cooperative societies

Moreover, the state government has provided financial support for SICUN's infrastructure development and ensures annual funding for administrative expenses.

CM Tamang stressed the importance of accountability and proper governance in the cooperative sector. He urged all cooperative leaders to follow strict cooperative laws and uphold the principles of transparency, efficiency, and fairness.

One of the most successful cooperative sectors in Sikkim is dairy farming, where cooperative models have helped milk producers receive fair prices and ensure seamless distribution of dairy products. To further boost the Sikkim dairy sector, the government is providing production-based incentives to encourage higher milk production.

"Our dairy cooperatives have set an example of how collective efforts can benefit thousands of farmers. To further strengthen this sector, we have allocated Rs 8 crore as a milk production incentive. This will ensure that farmers get the best value for their produce," said CM Tamang.

The conference was held at a significant time, as it coincided with the International Year of Cooperatives, which was officially launched last year by Prime Minister Narendra Modi. The United Nations' theme for the International Year of Cooperatives—"Cooperatives Build a Better World"—was highlighted at the event.

CM Tamang also emphasized that this year marks the 50th anniversary of Sikkim’s statehood, making it an ideal time to reflect on the state's economic progress and social development.

"Over the last five decades, Sikkim has made exemplary strides in poverty reduction, sustainable development, and economic growth. Today, we stand as the fourth-best state in poverty alleviation, with only 2.6% of our population living below the poverty line. Our literacy rates have also improved significantly, with male literacy at 93% and female literacy at 88%. Under the new Indian Literacy Program, we aim to achieve full literacy by 2027," he stated.

Sikkim has witnessed remarkable economic growth in recent years. Between 2019 and 2024, the state recorded an 85 per cent increase in GDP, reaching Rs 52,555 crore, while per capita income saw a 64 per cent rise, reaching Rs 7,07,181.

The manufacturing sector, especially the pharmaceutical industry, has been a key driver of growth, contributing Rs 15,000 crore to Sikkim’s Gross State Domestic Product (GSDP). The state has also outperformed the national economic growth rate, making it one of the fastest-growing regions in India.

The Chief Minister praised the efforts of the State Cooperative Department and SICUN Chairman, Mangaljit Rai, for their contributions to the cooperative movement in Sikkim. He stated that infusing young and dynamic leadership into apex cooperative bodies is crucial for ensuring a robust and sustainable future for cooperatives.

As part of the government’s commitment to strengthening the cooperative movement, CM Tamang announced cash prizes for the best-performing cooperative societies in Sikkim. 

The awards, which will be presented on Independence Day, include:

• Rs 10 lakh for the first prize winner
• Rs 7 lakh for the second prize winner
• Rs 5 lakh for the third prize winner

These awards aim to motivate cooperative societies to enhance their performance, adopt innovative practices, and contribute more effectively to the state’s economy.

The chief minister urged youth, women, and farmers to actively participate in the cooperative movement. He said that cooperatives can be powerful engines for rural and economic development, ensuring self-reliance and prosperity for all.

"I encourage our young people, women, and farmers to lead and expand the cooperative movement. The government is providing financial assistance, infrastructure development, and digitalization support to cooperatives, and I urge all societies to take full advantage of these opportunities," he said.

CM Tamang expressed his gratitude to the National Cooperative Union of India for organising the event and commended their efforts in strengthening the cooperative sector in Sikkim. He also extended a warm welcome to the representatives from various states and organisations who participated in the conference.

"This conference serves as a platform to showcase our achievements and inspire future cooperative endeavors. Let us work together to build a stronger, more self-sufficient Sikkim through the power of cooperation," he said.