Question

“Cooperatives have received a setback during the recent past.”

Justify the given statement with a valid explanation.

Answer 1

In recent years, cooperative societies have faced multiple challenges that have led to their decline. Some key reasons are:

1. Financial Mismanagement: Many cooperatives suffer from poor financial administration, leading to inefficiency and losses. Corruption and misallocation of funds have weakened their credibility.
2. Lack of Professionalism: Cooperative societies often lack skilled management and modern business strategies, making them less competitive than private enterprises.
3. Government Interference: Excessive political influence and government control have affected the autonomy of cooperatives, reducing their effectiveness in serving members' interests.
4. Limited Access to Technology & Markets: Many cooperatives struggle to adapt to modern technology and global markets, decreasing productivity and profitability.
5. Loan Defaults & Credit Issues: Many cooperative banks and credit societies face rising non-performing assets (NPAs), impacting their sustainability and trust among members.