To organize voluntary cooperative institutes based on mutual support as a democratic means, and develop them particularly to prevent the exploitation of weaker section of the society and to ensure their socio-economic development, various types of cooperative entities have been constituted at different levels in the State. Legislation of Cooperatives has been defined with the intention to organize voluntary cooperative institutes based on mutual support as a democratic means, and develop them particularly to prevent the exploitation of weaker section of the society and to ensure their socio-economic development.
Consequent to the efforts done with the intention of mutual support an in organized manner, members not only can ensure the fulfillment of their needs, but they also can give active contribution in the progress of each other. For fulfillment of these objectives, continuous efforts have been made for the development and promotion of cooperatives, in the State. The department of Cooperatives provides necessary guidance, protection, and makes available technical and economic support such as share capital, loan, loan guarantee and grants etc. to various cooperative institutions. With this background, the Co-operatives is playing its role in economic and social up gradation, with full competence, in current economy. Resulting Co-operative organizations are being established themselves as an important means to achieve the target of social equality, by discharging their responsibilities towards extremely backward section of the society and women, with keeping them at the focal point.
Unlike other departments of the Government, the Department of Cooperation is a development department for regulating and encouraging to cooperative entities working in cooperative movement. Department of Cooperation is not the department which spends funds directly, but it is the department for supervision and regulation of cooperative entities which are related to the development, whose responsibility is to constitute entities and their registration, supervision, audit, inspection, liquidation and reinforcement. In fact, Co-operatives is such a format of democratic instrument, that mobilize the mutual co-operation based banking institutions and autonomous co-operative entities, and do their institutional development, so that they will become an instrument to prevent the exploitation of common people especially of weaker section and to ensure their social and economic development. The Department plays the role of a friend, a philosopher and as a guide for the co-operative institutions of farmers, artisans, weavers, fishermen, scheduled castes, scheduled tribes, other backward classes, women and the people of weaker section, so that their socio-economic progress can be achieved.
On the basis of recommendations of Vaidyanathan committee, a strong commercial platform has been provided to Agricultural Credit co-operative structure by making extensive amendments in Madhya Pradesh Co-operative Act.