Q.Explain the challenge of 'political interference' before the co-operative sector.

Large co-operatives control money, jobs and members, which makes them attractive as bases of political power.

Political interference is the intrusion of politics and politicians into the management and working of co-operative societies, and it is one of the most serious challenges before the sector, especially in Maharashtra.

Why it happens. Many large co-operatives — sugar factories, spinning mills, urban and district banks, marketing societies — handle large sums of money, provide employment and command the loyalty of thousands of members. This makes them attractive as a base of political power, so elections to their managing committees are often fought like political battles, and control of a society becomes a route to political office rather than a means of serving members.

How it harms co-operatives:

• Decisions become political, not economic — loans, appointments, purchases and contracts are decided to please supporters, leading to bad lending, over-staffing and losses.
• Democratic character is damaged — the society becomes the fiefdom of a leader or party, and the ordinary member's voice is lost, making 'one member, one vote' a mere formality.
• Autonomy is lost — control by outside political interests violates the principle of autonomy and independence, which requires member control.
• Factionalism and instability — rival groups fighting for control cause disputes, litigation and paralysed decision-making.
• Misuse of funds — political control has often been linked with corruption and misuse of the society's money. …