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Cooperative Societies on GeM Platform: A Step Towards a Transparent, Efficient and Economic Procurement System

The Union Cabinet under the visionary leadership of the Prime Minister Shri Narendra Modi, has approved the registration of cooperative societies as ‘Buyers’ on Government e-Marketplace (GeM) platform

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The Union Cabinet under the visionary leadership of Prime Minister Shri Narendra Modi has approved the registration of cooperative societies as ‘Buyers’ on Government e-Marketplace (GeM) platform. This will enable the cooperative societies to access more than 45 Lakh vendors on a single platform and to follow a transparent, economic and efficient procurement system.

Under the leadership of Union Minister of Cooperation Shri Amit Shah, the Ministry of Cooperation is encouraging Multi-State Cooperative Societies and Cooperative Societies registered under State Cooperative Acts to join the GeM platform for the benefit of their members and hopes that more and more cooperatives Societies will get benefit of this by joining GeM platform.

At present, there are about 8.54 lakh cooperatives in India with about 29 crore members. They have been performing a wide range of activities for the production of goods and services. These cooperatives make huge purchases of goods and services from the open market to support their operations.  There was a felt need to provide a platform to them to avail competitive prices through a transparent and efficient process resulting in benefit to the members of the cooperative societies.

Government e-Marketplace (GeM) has been set up as a National Procurement Portal to provide an end-to-end online marketplace for Central and State Government Ministries/ Departments, and PSUs etc. for procurement of common-use goods and services in a transparent and efficient manner. The Gross Merchandise Value of procurement using GeM was more than Rs.1 lakh crore in the FY 2021-22. There are around 54 lakh products listed across 9,702 product categories and 279 service categories. There was an estimated savings of around Rs.10,000 crores in the FY 2021-22.

Purchases through GeM will provide the following benefits:

  1. The Cooperatives would get competitive prices through an open and transparent process, and this would be economically beneficial to the members of the society.
  2. The Cooperative societies can procure from about 45 lakh authenticated sellers/ service providers available across the country on a single GeM platform,
  3. Following the standard procedures on GeM would lead to saving of time and reduction in the administrative burden.
  4. It would enhance the credibility of the cooperatives as complaints of mismanagement of funds will get reduced.

GeM authorities will provide a dedicated onboarding process for cooperatives, technical infrastructure and support for on-boarding and transactions, via available contact centres, in-field training, and other support services.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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