Speaking to The Financial Express, Sharma said that such a measure will enable many of the professional and efficient co-operatives to tide over the liquidity crunch. He stated that co-operative character of the organisation can be maintained despite tapping of capital markets if there is a provision for inviting non-voting preferential shares by co-operatives.

He said under the existing law, co-operatives are not allowed to raise funds either from capital markets or through ECBs. This has placed them at a disadvantage vis-a-vis other corporate houses in the era of economic liberalisation and globalisation, especially when the government is in the process of withdrawing financial support to the co-operatives.

Sharmalashed out at both Union agriculture minister Sompal and agriculture secretary Kamal Pande for not making any commitment to the proposed amendments to the Multi-State Cooperative Act and the National Co-operative Development Corporation (NCDC) Act in the inauguration of the consultation on national co-operative policy in the capital on Tuesday.

On the other hand, the minister confined himself to the need for disciplining state-level co-operatives.

Inaugurating the discussion, the minister observed that the co-operative movement is suffering from ills such as vested interests, inadequate leadership, mounting overdues, wilful defaults, apathy on the part of members and lack of professional management. He stated that the government steps in to interfere only when and where the co-operative movement is in the hands of vested interests. He underlined the need for bringing into the co-operative fold larger numbers from the economically weaker strata of the community and also emerge as a genuine instrument forfulfilling the aspirations of small and marginal farmers.

Speaking on the occasion, agriculture secretary Kamal Pande called for creation of an enabling external environment that will give co-operatives the ability to enjoy a democratic management and professional operations.