To consolidate and amend the law relating to cooperative societies objects not confined to one State and serving the interests of members more than one state, to facilitate the voluntary formation and democratic functioning of cooperatives as people institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy, was being felt Notice Necessary in Suits by the various cooperative societies, and federations of various cooperative societies as well as by the Government. In order to achieve this objective the multi state cooperative societies bill was introduced in the Parliament

.Cooperative leaders are ambivalent on the proposed amendment with some seeing it as attack on the democratic structure of cooperative societies. Others see in it an opportunity to address cooperative leaders high-handedness in which a few gather to decide the fate of millions. This Act which came in force with effect from 19.8.2002 was enacted to replace the multi state cooperative societies Act, 1984. The Act facilitates voluntary formation and democratic functioning of multi state societies as member driven institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and provides for functional autonomy. Produce of farmers of agriculture including animal husbandry, horticulture, floriculture, viniculture, viticulture, forestry, forest products, renegotiation, bee-raising and farming plantation products and produce from any other primary activity or service which promotes the interest of farmers or consumers. According to economic historian, Charles Guide Cooperation is self-help and each for all (mutual-aid). Self-help means the pride of supplying one's own needs by one's own resources, of being one's own merchant banker, money lender and employer. Each for all means to seek liberation, not only for oneself but for and through others”. The International Cooperative Alliance (ICA), at its Manchester Congress held in September, 1995 adopted a Statement on Cooperative Identity. The Statement included the definition of Cooperatives, a list of the cooperative society values and a set of Cooperative Principles. According to ICA, a cooperative is an autonomous association of persons united voluntarily to meet their common, economic, social and cultural/needs and aspirations through a jointly owned and democratically controlled enterprise.