Govt. allows cooperatives to sell products online

• The Union Cabinet cleared a proposal allowing cooperatives to sell products on the Government-e-Marketplace (GeM) platform.
• The cooperatives may, however, be charged a transaction fee to cover the incremental costs.

About GeM

• The GeM started in 2017 is a one-stop portal to facilitate online procurement of commonly used goods and services.
• The portal is open for all government buyers — Union and State Ministries, departments, public sector enterprises, autonomous institutions, local bodies and so on.
• Private buyers cannot buy on the platform but private people can sell products to government bodies through the portal.

Benefits of Proposal

• The move will benefit 27 crore people associated with 8.5 lakh cooperatives.
• He said the micro and medium small industries will get buyers and it will boost the prospects of “Vocal for local” and Atma Nirbhar Bharat.

GeM SPV [Special Purpose Vehicle]

• The validated list of cooperatives to be onboarded on the GeM — for pilot as well as subsequent scale-up — will be decided by the Ministry of Cooperation in consultation with the GeM SPV [Special Purpose Vehicle].
• SPV will ensure that technical capacity and logistics requirements of the GeM system are taken into account while deciding the pace of onboarding of Cooperative as buyers on the GeM.

Exams Track

Prelims Takeaway

• Ministry of Cooperation
• GeM
• Cooperative societies
• Atma Nirbhar Bharat