Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
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Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
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        न्यूज क्लिपिंग्स् | The case for Sugar Cooperatives' reform    </title>
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There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002..."/>
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There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002..." />
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    <h1 class="cat-box-title">The case for Sugar Cooperatives' reform</h1>
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<font >There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002 based on a Draft Act prepared by a Committee I chaired. As far as possible conflict of interest, reporting norms and so on need enforcement for Cooperatives as in Company law. Sugar Cooperatives can then claim recourse to technological, financial and operational collaboration at home and abroad and modernise or restructure. </font>
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<font >Sugar cooperatives have a long tradition of interacting with experts. In fact, the first sugar cooperative was set up by Shri Vikhe Patil at Loni with the association of the doyen of Indian economists, Prof D R Gadgil. </font>
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<font >This tradition continues in many cooperatives who associate many experts in different fields with their work. In fact, in Loni I am known as the arthashastri Alagh because I have been associated with them for a long time. It is easily possible to introduce the category of Independent Directors in management of cooperatives as in Companies. These Directors should not only be expert consultants but have the same powers and responsibilities as in Company law. </font>
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<font >There could also be the provision of an Ethics and Insider Trading Committee as in Company Law with an Independent Director as its Chairman and half the members from the category of Independent Directors. It should have a senior executive of the cooperative as its Secretary, so that it can effectively perform its functions. It could be mandated to report directly to the General Body of the Cooperative. </font>
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<font >Take the issue of conflict of interest. At present many sugar cooperatives and associated groups are run by individuals closely related with each other. The Company Law lays down strict norms on the transactions of a company with relatives of management persons. The coverage of relatives and the restrictions can easily be the same for cooperatives as companies. In fact, this is so already for cooperatives which have become Producer Companies. </font>
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<font >The audit committee of a cooperative should also function with the same norms as in company law. None of this will ensure compliance for there are scams in companies also. But it will make it easier for cooperatives which want to be run professionally. I am not surprised that both traditional cooperators and senior corporate experts have both argued against producer companies. Producer Companies keep the spirit of cooperation of one vote for each shareholder and are not run by capital owners. They also try to capture the spirit of efficiency of a company. These are the days of experimentation with newer forms of organisations. </font>
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<font >If cooperatives follow norms of transparency, prudence and make money they should also be given the autonomy of borrowing, collaborations and expansion, both at home and abroad without government approval. Liberalisation in India never runs to peoples' groups</font>
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        न्यूज क्लिपिंग्स् | The case for Sugar Cooperatives' reform    </title>
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There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002..."/>
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There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002..." />
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    <h1 class="cat-box-title">The case for Sugar Cooperatives' reform</h1>
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<font >There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002 based on a Draft Act prepared by a Committee I chaired. As far as possible conflict of interest, reporting norms and so on need enforcement for Cooperatives as in Company law. Sugar Cooperatives can then claim recourse to technological, financial and operational collaboration at home and abroad and modernise or restructure. </font>
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<font >Sugar cooperatives have a long tradition of interacting with experts. In fact, the first sugar cooperative was set up by Shri Vikhe Patil at Loni with the association of the doyen of Indian economists, Prof D R Gadgil. </font>
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<font >This tradition continues in many cooperatives who associate many experts in different fields with their work. In fact, in Loni I am known as the arthashastri Alagh because I have been associated with them for a long time. It is easily possible to introduce the category of Independent Directors in management of cooperatives as in Companies. These Directors should not only be expert consultants but have the same powers and responsibilities as in Company law. </font>
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<font >There could also be the provision of an Ethics and Insider Trading Committee as in Company Law with an Independent Director as its Chairman and half the members from the category of Independent Directors. It should have a senior executive of the cooperative as its Secretary, so that it can effectively perform its functions. It could be mandated to report directly to the General Body of the Cooperative. </font>
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<font >Take the issue of conflict of interest. At present many sugar cooperatives and associated groups are run by individuals closely related with each other. The Company Law lays down strict norms on the transactions of a company with relatives of management persons. The coverage of relatives and the restrictions can easily be the same for cooperatives as companies. In fact, this is so already for cooperatives which have become Producer Companies. </font>
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<font >The audit committee of a cooperative should also function with the same norms as in company law. None of this will ensure compliance for there are scams in companies also. But it will make it easier for cooperatives which want to be run professionally. I am not surprised that both traditional cooperators and senior corporate experts have both argued against producer companies. Producer Companies keep the spirit of cooperation of one vote for each shareholder and are not run by capital owners. They also try to capture the spirit of efficiency of a company. These are the days of experimentation with newer forms of organisations. </font>
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<font >If cooperatives follow norms of transparency, prudence and make money they should also be given the autonomy of borrowing, collaborations and expansion, both at home and abroad without government approval. Liberalisation in India never runs to peoples' groups</font>
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        न्यूज क्लिपिंग्स् | The case for Sugar Cooperatives' reform    </title>
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There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002..."/>
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There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002..." />
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    <h1 class="cat-box-title">The case for Sugar Cooperatives' reform</h1>
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<font >There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002 based on a Draft Act prepared by a Committee I chaired. As far as possible conflict of interest, reporting norms and so on need enforcement for Cooperatives as in Company law. Sugar Cooperatives can then claim recourse to technological, financial and operational collaboration at home and abroad and modernise or restructure. </font>
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<font >Sugar cooperatives have a long tradition of interacting with experts. In fact, the first sugar cooperative was set up by Shri Vikhe Patil at Loni with the association of the doyen of Indian economists, Prof D R Gadgil. </font>
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<font >This tradition continues in many cooperatives who associate many experts in different fields with their work. In fact, in Loni I am known as the arthashastri Alagh because I have been associated with them for a long time. It is easily possible to introduce the category of Independent Directors in management of cooperatives as in Companies. These Directors should not only be expert consultants but have the same powers and responsibilities as in Company law. </font>
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<font >There could also be the provision of an Ethics and Insider Trading Committee as in Company Law with an Independent Director as its Chairman and half the members from the category of Independent Directors. It should have a senior executive of the cooperative as its Secretary, so that it can effectively perform its functions. It could be mandated to report directly to the General Body of the Cooperative. </font>
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<font >Take the issue of conflict of interest. At present many sugar cooperatives and associated groups are run by individuals closely related with each other. The Company Law lays down strict norms on the transactions of a company with relatives of management persons. The coverage of relatives and the restrictions can easily be the same for cooperatives as companies. In fact, this is so already for cooperatives which have become Producer Companies. </font>
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<font >The audit committee of a cooperative should also function with the same norms as in company law. None of this will ensure compliance for there are scams in companies also. But it will make it easier for cooperatives which want to be run professionally. I am not surprised that both traditional cooperators and senior corporate experts have both argued against producer companies. Producer Companies keep the spirit of cooperation of one vote for each shareholder and are not run by capital owners. They also try to capture the spirit of efficiency of a company. These are the days of experimentation with newer forms of organisations. </font>
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<font >If cooperatives follow norms of transparency, prudence and make money they should also be given the autonomy of borrowing, collaborations and expansion, both at home and abroad without government approval. Liberalisation in India never runs to peoples' groups</font>
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The case for Sugar Cooperatives' reform

Published on Dec 9, 2009   Modified on Dec 9, 2009

There is substantial capacity in the cooperative sugar sector. Reform of the sector needs transparency, enforcement of prudential norms and effective governance. Multi State Cooperatives can now become Producer Companies under the Companies Act by the Second Amendment in 2002 based on a Draft Act prepared by a Committee I chaired. As far as possible conflict of interest, reporting norms and so on need enforcement for Cooperatives as in Company law. Sugar Cooperatives can then claim recourse to technological, financial and operational collaboration at home and abroad and modernise or restructure. Sugar cooperatives have a long tradition of interacting with experts. In fact, the first sugar cooperative was set up by Shri Vikhe Patil at Loni with the association of the doyen of Indian economists, Prof D R Gadgil. This tradition continues in many cooperatives who associate many experts in different fields with their work. In fact, in Loni I am known as the arthashastri Alagh because I have been associated with them for a long time. It is easily possible to introduce the category of Independent Directors in management of cooperatives as in Companies. These Directors should not only be expert consultants but have the same powers and responsibilities as in Company law. There could also be the provision of an Ethics and Insider Trading Committee as in Company Law with an Independent Director as its Chairman and half the members from the category of Independent Directors. It should have a senior executive of the cooperative as its Secretary, so that it can effectively perform its functions. It could be mandated to report directly to the General Body of the Cooperative. Take the issue of conflict of interest. At present many sugar cooperatives and associated groups are run by individuals closely related with each other. The Company Law lays down strict norms on the transactions of a company with relatives of management persons. The coverage of relatives and the restrictions can easily be the same for cooperatives as companies. In fact, this is so already for cooperatives which have become Producer Companies. The audit committee of a cooperative should also function with the same norms as in company law. None of this will ensure compliance for there are scams in companies also. But it will make it easier for cooperatives which want to be run professionally. I am not surprised that both traditional cooperators and senior corporate experts have both argued against producer companies. Producer Companies keep the spirit of cooperation of one vote for each shareholder and are not run by capital owners. They also try to capture the spirit of efficiency of a company. These are the days of experimentation with newer forms of organisations. If cooperatives follow norms of transparency, prudence and make money they should also be given the autonomy of borrowing, collaborations and expansion, both at home and abroad without government approval. Liberalisation in India never runs to peoples' groups

 

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