The CIP, comprising Chairman of the Gujarat Cooperative Milk Marketing Federation, Dr V Kurien, former Deputy chairman of the Planning commission, Mohan Daria, and Gandhian economist and former high commissioner to South Africa, L C Jain, in a joint press briefing said it was imperative to change the outdated acts for cooperative sector's survival.

On the issue of competition to cooperative sector from MNCs, Kurien said, ``We are not scared of it, but we are not going to fight with our hand tied behind by the present Cooperative Acts.''

There was general unanimity that the sector deserved more attention than what it was getting at present. ``Though there is a mention of it in the Ninth plan allocation, we are not satisfied with the response in general. The political and bureaucratic influence on the cooperative sector has to end for ensuring this sector's survival in the era of free market economy,'' Dharia said.

Kurien averred that a paradigm shift was the only way the cooperatives could claim a place in the new economic order of the next millennium. ``The cooperatives must respond with a twin-fold strategy. One, they must do away with the state partnership and the cooperatives must improve the quality of governance,'' he suggested.

The panel members were also dissatisfied with the State Government's response towards its demand for repealing the Cooperatives Act and said that the government was yet to give its commitment to the cause of cooperative liberation.

Jain was more forthright while stating that despite Gujarat being the motherland of Cooperative movement in India nothing had been done so far to free the movement from the clutches of the bureaucracy.

According to Kurien, it was ironic that despite non-existent government holdings in some cooperatives including Amul, it was the Registrar of Cooperatives who was trying to throw around his weight and interfere in the cooperative's policy decision.

The CIP hoped to create a lobby which could counter the increasing interest of the MNCs in the Indian market. ``We are in touch with scores of MPs and a number of saner elements agree with us on this issue,'' said Dharia.

Terming the growth in investment as inversely proportional to the growth in employment levels, Jain said that indicators of various economies have amply proved that the MNCs were investing in areas where the goods and services were produced with minimum labour. ``In South Africa, the foreign investment has been growing rapidly and equally drastic is the fall in the employment levels,'' Jain said.

Jain argued that a disturbing trend was that on one hand the number of agricultural holding in the country was increasing and on the other the size of holdings were going down. ``Out of the 160 million small holding about 50 per cent cases are where the size was below an acre,'' Jain said, adding that it was essential to provide an Institutional back up to these holders for their growth. ``If the country's GDP has to grow, emphasis would have to be on the growth of the small holders. This is where the cooperative movement is essential,'' Jain reasoned.

Asked why the Gujarat government was indifferent towards their demand, the CIP members said that wherever the cooperative sector was strong the government resistance was even stronger.