Question 1

With reference to the evolution of the co-operative sector in India, consider the following statements:
1. The Bombay Co-operatives Societies Act was the first to recommend a strong three-tier structure of credit cooperatives in India.
2. The Co-operative Planning Committee (1945) was set up under the chairmanship of Shri Morarji Desai.
3. The formation of the Khera District Co-operative Milk Producers Milk Union was a direct result of a protest against the monopoly procurement rights granted to a private company.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect. The recommendation for a strong three-tier structure of credit cooperatives was made by the Maclagen Committee on Cooperation, not the Bombay Co-operatives Societies Act. The Bombay Act is noted for introducing the principle of 'one man, one vote'. Statement 2 is incorrect. The Co-operative Planning Committee (1945) was established under the chairmanship of Shri R.G. Saraiya. Shri Morarji Desai was associated with the milk producers' strike in Khera district. Statement 3 is correct. The milk producers of Khera District protested against the monopoly procurement rights given to Polson, a private dairy, which led to the establishment of the Khera District Co-operative Milk Producers Milk Union (Amul).

Question 2

Consider the following statements regarding the definition and nature of co-operatives:

Statement-I: The modern concept of co-operation, which emerged as a response to the societal changes brought by the Industrial Revolution, is primarily attributed to the philosophy of Robert Owen.

Statement-II: The International Labour Organisation (ILO) defines a co-operative as 'an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.'

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect.. Statement-I is correct. The modern co-operative movement is historically traced back to the period of the Industrial Revolution as a response to its socio-economic impacts. Robert Owen, a social reformer, is widely regarded as a pioneer of the movement due to his influential philosophy and practical experiments in forming co-operative communities. Statement-II is incorrect. The definition provided in the statement is the one adopted by the International Co-operative Alliance (ICA) in 1995. The statement incorrectly attributes this well-known definition to the International Labour Organisation (ILO). Therefore, as Statement-I is correct and Statement-II is incorrect, option (c) is the correct answer.

Question 3

With reference to the constitutional provisions for Co-operative Societies in India, consider the following statements:

1. The 97th Constitutional Amendment Act granted the right to form co-operative societies the status of a Fundamental Right.
2. The promotion of co-operative societies was incorporated as a Fundamental Duty under Part IVA of the Constitution.
3. The subject 'Co-operative Societies' is placed under the Concurrent List in the Seventh Schedule of the Constitution.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct. The 97th Constitution (Amendment) Act, 2011, amended Article 19(1)(c) to include the right to form 'co-operative societies' as a Fundamental Right. Statement 2 is incorrect. The promotion of co-operative societies was added as a Directive Principle of State Policy (DPSP) under Article 43B in Part IV of the Constitution, not as a Fundamental Duty in Part IVA. Statement 3 is incorrect. The subject 'Co-operative Societies' is listed under the State List (List II, Entry 32) in the Seventh Schedule of the Constitution, not the Concurrent List.

Question 4

Consider the following two statements:

Statement-I: The administrative and financial control of Multi-State Co-operative Societies is vested with the central registrar.

Statement-II: The Constitution of India places the subject 'Co-operative Societies' under the State List in the Seventh Schedule.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I.. Statement-I is correct. For co-operative societies whose operations are not confined to a single state, known as multi-state co-operative societies, the administrative and financial control lies with the central registrar, as stipulated by the Multi State Co-operative Societies Act. Statement-II is also correct. The Constitution, in its Seventh Schedule, places 'Co-operative Societies' under the State List (Entry 32 of List II). However, Statement-II does not explain Statement-I. In fact, Statement-I describes a specific arrangement for inter-state entities that functions as an exception to the general rule mentioned in Statement-II. The central control for multi-state societies is a provision made by Parliament through specific legislation (the MSCS Act) to regulate entities that operate beyond the jurisdiction of a single state, not because of the constitutional entry itself.

Question 5

Consider the following provisions related to the Multi State Co-operative Societies (Amendment) Act, 2023:

1. It provides for the establishment of a Co-operative Election Authority to supervise elections to the boards of multi-state co-operative societies.
2. It mandates the creation of a Co-operative Rehabilitation, Reconstruction and Development Fund, financed by contributions from profitable multi-state co-operative societies.
3. It allows for the merger of an existing multi-state co-operative society into a state co-operative society, subject to the respective state laws.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The 2023 amendment provides for the establishment of a Co-operative Election Authority to conduct and supervise elections for the boards of these societies. Statement 2 is correct. The amendment includes a provision for setting up a Co-operative Rehabilitation, Reconstruction and Development Fund to revive sick multi-state co-operative societies, which is to be financed by profitable ones. Statement 3 is incorrect. The provision allows for the merger of a 'state co-operative society' into an 'existing multi-state co-operative society', not the other way around. This process is also subject to the respective state laws.

Question 6

With reference to the structure of Co-operative Banking in India, consider the following statements:

1. Land Development Banks are primarily responsible for catering to the long-term credit needs of the agricultural sector.
2. The short-term agricultural credit structure is a three-tier federal system with Primary Agricultural Credit Societies operating at the village level.
3. State Co-operative Banks, which operate at the state level, are classified as long-term agricultural credit institutions.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The text explicitly states that the need for long-term credit in the agricultural sector is usually covered by the Land Development Banks. Statement 2 is correct. The text describes the short-term agricultural credit institutions as having a three-tier federal structure, with Primary Agricultural Credit Societies at the village level. Statement 3 is incorrect. The text classifies State Co-operative Banks as the apex institution within the three-tier structure for short-term agricultural credit, not long-term credit. The structure for short-term credit includes State Co-operative Banks at the state level, District Co-operative Banks at the district level, and Primary Agricultural Credit Societies at the village level.

Question 7

Consider the following two statements:

Statement-I: In a co-operative, the persons who own, control, and use the enterprise are unified, distinguishing it from traditional large businesses where these groups are separate.

Statement-II: A unique advantage of the co-operative movement is the involvement of masses in both decision-making and implementation processes at all stages.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.. Statement-I is correct. The text explicitly contrasts co-operatives with traditional businesses by stating that in a co-operative, the owners, controllers, and users 'come together to form a unity'. Statement-II is also correct. The text highlights a 'major advantage' of the co-operative movement as 'the involvement of masses in both their decision-making and implementation process at all the stages'. Statement-II provides the correct explanation for Statement-I because the unification of owners, controllers, and users (as described in Statement-I) is the very mechanism that facilitates the mass involvement in decision-making and implementation (as described in Statement-II). When the users of a service are also its owners and controllers, their participation in governance is inherent to the model.

Question 8

Consider the following statements regarding types of co-operatives in India:

1. Farmer Producer Organisations (FPOs) and Marketing Co-operative Societies are examples of non-financial co-operatives.
2. Primary Agricultural Credit Societies (PACS) are classified as non-financial co-operatives as they primarily serve the agricultural sector.
3. A key feature of non-financial co-operatives is the principle of 'one member, one vote'.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct. The text lists Farmer Producer Organisations (FPO) and Marketing Co-operative Society as forms of non-financial co-operatives. Statement 2 is incorrect. The text explicitly classifies Primary Agricultural Credit Societies (PACS) under the category of financial co-operatives, specifically as the village-level unit for providing short-term agricultural credit. Statement 3 is correct. The text lists 'One Member, One Vote' as a feature of non-financial co-operatives.

Question 9

Consider the following statements regarding the institutional framework related to the Amul model:
1. The Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) was established as an apex marketing body to avoid internal competition among district co-operatives.
2. The Kaira District Co-operative Milk Producers’ Union Limited was founded in 1946 under the direct leadership of Dr. Verghese Kurien.
3. The National Dairy Development Board was established by the British government in response to the 'milk strike' to manage the Bombay Milk Scheme.

How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is correct; the text explicitly states that the Gujarat Co-operative Milk Marketing Federation Ltd. was established in 1973 to expand the market and to avoid competition amongst the district co-operatives themselves. Statement 2 is incorrect; the Kaira District Co-operative Milk Producers’ Union was founded with support from Sardar Vallabhbhai Patel. Dr. Verghese Kurien's leadership is associated with the later phase, spearheading the White Revolution in the 1970s. Statement 3 is incorrect; the National Dairy Development Board was founded in 1965, long after the British government's involvement, with the objective to replicate the Amul model, not to manage the Bombay Milk Scheme. The British government's role was limited to accepting the farmers' demand to form a co-operative in 1946.

Question 10

Consider the following statements regarding Primary Agricultural Credit Societies (PACS):

Statement-I: PACS serve as the foundational link in the co-operative credit structure, connecting rural borrowers at the village level with higher financial agencies like state co-operative banks.

Statement-II: The functions of PACS are exclusively focused on credit-related activities, such as providing loans and collecting repayments, and do not include non-credit functions like distribution and marketing.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect. Statement-I is correct. The text describes PACS as the 'grassroot level wings' and the 'link between the rural borrowers at the village level on one hand and the higher agencies, viz. District Central co-operative bank, state co-operative bank, on the other'. Statement-II is incorrect. The text explicitly states that PACS 'also perform distribution and marketing functions' in addition to their credit-related roles of providing loans and collecting repayments. The statement incorrectly narrows the scope of PACS' functions.

Question 11

Consider the following statements regarding institutions in the co-operative sector:

1. The National Co-operative Development Corporation (NCDC) is primarily responsible for the incorporation, regulation, and winding up of multi-state co-operative societies.
2. The Central Registrar of Co-operative Societies (CRCS) is a statutory corporation established by an Act of Parliament in 1963 under the administrative control of the Ministry of Cooperation.
3. The National Co-operative Organics Limited (NCOL) acts as an umbrella organisation for quality seed cultivation, production, and distribution under a single brand.

How many of the above statements are correct?

Accepted Answer

None. Statement 1 is incorrect. The Office of the Central Registrar of Co-operative Societies (CRCS) is responsible for the incorporation, regulation, and winding up of multi-state co-operative societies. The NCDC's functions include planning, promoting, and financing programmes for production, processing, and marketing through co-operatives. Statement 2 is incorrect. This statement describes the National Co-operative Development Corporation (NCDC), which is a statutory corporation established by an Act of Parliament in 1963. The CRCS is an office, and the registrar is appointed under the Constitution and the MSCS Act, 2002. Statement 3 is incorrect. The Bharatiya Beej Sahakari Samiti Limited (BBSSL) is the umbrella organisation for quality seed cultivation, production, and distribution. The National Co-operative Organics Limited (NCOL) is the umbrella organisation for producing, distributing, and marketing certified organic products.

Question 12

Consider the following two statements:

Statement-I: Three new National Level Multi-State Societies have been recently established under the Multi-State Co-operative Societies (MSCS) Act, 2002, focusing on exports, organic produce, and seed-related activities.

Statement-II: The National Co-operative Export Limited (NCEL) is the designated umbrella organisation to produce, distribute, and market certified organic products under the ‘Bharat Organics’ brand.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is correct but Statement-II is incorrect. Statement-I is correct. The text explicitly states that three new National Co-operative Societies have been formed under the MSCS Act, 2002, for Exports, Organic produces, and Seed related activities. Statement-II is incorrect. It misattributes the function of one society to another. The National Co-operative Export Limited (NCEL) is an umbrella organisation for exports from the co-operative sector. The task of producing, distributing, and marketing certified organic products under the ‘Bharat Organics’ brand belongs to the National Co-operative Organics Limited (NCOL), not NCEL.

Question 13

Consider the following statements:

Statement-I: The primary reason for failures in non-credit co-operatives is the accumulation of non-performing assets and growing bad debts.

Statement-II: Credit co-operatives often face financial distress due to issues like poor loan recovery, wilful defaulters, and government loan waiver practices.

Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect but Statement-II is correct. Statement-I is incorrect. The text explicitly attributes the failures of non-credit co-operatives to factors like the inability to draw customers due to a lack of effective advertising and unsuccessful marketing strategies. The issue of growing bad debts and non-performing assets is a challenge specific to credit co-operatives. Statement-II is correct. The text lists growing bad debts, non-performing assets, an increased number of wilful defaulters, poor loan recovery, and waiver practices of governments as reasons for losses in credit co-operatives, which distort their financial shape.

Question 14

Consider the following statements regarding recent initiatives for the co-operative sector:

1. The World's Largest Decentralised Grain Storage Plan aims to create centralized storage facilities at the national level to reduce food grain wastage.
2. The initiative to enable Primary Agricultural Credit Societies (PACS) to function as Common Service Centres (CSCs) is a collaboration involving the Ministry of Cooperation, MeitY, NABARD, and CSC e-Governance Services India.
3. The Reserve Bank of India has approved the formation of an Umbrella Organisation for the Urban Co-operative Bank (UCB) sector.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect. The plan is for a 'Decentralised' grain storage system, with infrastructure created at the PACS level, not a centralized one at the national level. Statement 2 is correct. The text specifies that the initiative for PACS as CSCs is a collaboration between the Ministry of Cooperation, MeitY, NABARD, and CSC e-Governance Services India. Statement 3 is correct. The text explicitly states that the RBI has given approval to the National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) for the formation of an Umbrella Organisation for the UCB sector. Therefore, two statements are correct.

Question 15

Consider the following statements regarding the objectives and features of the digitalization of India's dairy sector:

Accepted Answer

Only two. The question assesses understanding of the goals of digital transformation in the agricultural sector. Statement 1 is correct; a key objective of digitalization is to bring transparency and traceability to the supply chain, for which technologies like blockchain are being explored to prevent issues like adulteration. Statement 2 is correct; integrating procurement data with digital payment systems like UPI is a core feature to ensure timely and direct payments to farmers, as seen in initiatives like the Automatic Milk Collection System (AMCS). Statement 3 is incorrect; a primary goal of such digital platforms is disintermediation—reducing the dependency on and the role of traditional intermediaries to improve price realization for farmers. The statement presents a directional inversion of this core objective.

Question 16

With reference to the digital transformation of India's dairy sector, consider the following statements:
1. The National Dairy Development Board (NDDB) is a key implementing agency for these initiatives.
2. The initiatives operate primarily under the mandate of the Ministry of Commerce and Industry.
3. A key objective is the integration with the Open Network for Digital Commerce (ONDC) to enhance market linkage for farmers.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. Statement 1 is correct. The National Dairy Development Board (NDDB), as the apex body for dairy development in India, is spearheading the digital transformation of the sector through platforms like Bharat Pashudhan and the Automatic Milk Collection System (AMCS). Statement 2 is incorrect. The nodal ministry for the dairy sector is the Ministry of Fisheries, Animal Husbandry and Dairying. The Ministry of Commerce and Industry is a plausible distractor as it is the nodal ministry for the Open Network for Digital Commerce (ONDC), which is related but distinct. Statement 3 is correct. Integrating various digital platforms with ONDC is a strategic goal to provide wider market access to producers, including dairy farmers, by unbundling the e-commerce value chain. This aligns with the overall aim of using digital tools to improve farmer incomes.

Question 17

Consider the following statements regarding the digitalization of India's dairy sector:
Statement-I: The primary objective of initiatives like the Automatic Milk Collection System (AMCS) is to stimulate consumer demand for dairy products.
Statement-II: These digital platforms focus on improving production efficiency, data transparency, and market access for milk producers.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement-I is incorrect; Statement-II is correct.. Statement-I is incorrect. It misclassifies the intervention's primary objective. The AMCS and other digital platforms are supply-side tools designed to improve production efficiency, quality control, and farmer payments, not directly stimulate consumer demand. Statement-II is correct as it accurately describes the core supply-side functions of these initiatives, such as enhancing efficiency, transparency, and market access for producers.

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