Challenges Faced by Cooperatives

8/3/2019 Challenges Faced by Cooperatives

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Parvathy KRoll No. 21Sixth Sem,

BBA,LLB(Hon)


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` Despite rapid growth the overall progress ofcooperative movement during 100 years of its

existence is not very impressive. It is therefore

necessary to know the causes of poor performance of

the movement and on that basis take such steps aswould promote a faster growth of cooperative

movement in India.1) Government Interference

2) Mismanagement and manipulation3) Lack of Awareness

4) Restricted Coverage

5) Functional Weakness


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` Increasing no. of commercial banks in rural areas

` Fraud & Corruption

` Financial Crises` More political intervention

` Lack of Training

` Lack of technology


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` Heavy erosion in their democratic and autonomousfunctioning.

` Most of the grassroots co-operatives are not self-reliant andheavily dependent on Government Assistance.

`

Management not responsive to the needs of the membersand not truly accountable to them.` Sickness is increasing resulting in large number of defunct/

dormant societies.` Co-operatives are not well equipped to face the challenges of

open and competitive market oriented economy. As a result,

they are not only loosing ground in their traditional areas ofactivities but also unable to enter into new ventures


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` Elections are not held regularly.

` Supersession of Board ofDirectors and appointment ofAdministrators for undue longer period.

` General Body meetings are not held regularly.

` Audit is not professional. It is also not conducted in time.

` There is undue and unnecessary political interference andbureaucratic control even in their day-to-day affairs.

` Unprofessional management leading to high operational costand delayed delivery of services to members.

` Lack of member participation.

` Poor system of monitoring and inadequate checks andbalances.


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` The products are neither popular among

customers nor profitable to the institution

themselves.

` Stiff competition from private` Poor participation of members

` Weak financial base of societies

` Absence of professional management

` Ever growing corruption and frauds, etc


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1. Cooperative Reforms` Simplified procedure for registration

` Removal of unwanted govt.

` interferences

` Members of non political background

` Defined rules & procedures


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2. Administrative Reforms

Debureaucratisation

Professional Management & staff

Skill building/ skill upgradation of staff

Adoption of uniform accounting procedures.

3. Business Reforms

After scanning environment development plan should be

made

The plans should be quantifiable & measurable with

specified time frame for achievement. Empowered monitoring scheme.


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AMUL-ANANDMILKPRODUCERS UNION LIMITED

FORMED IN DEC,1946, & STARTED A DAIRY COOPERATIVE MOVEMENTIN INDIA UNDER THE LEADERSHIP OF VARGHESE KURIAN.

IT IS A BRAND NAME MANAGED BY AN APEX COOPERATIVEORGANISATION, GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION

LTD. (GCMMF), STARTED WITH 2 VILLAGE HAVING 250 LTRS/DAY MILK

WHICH TODAY IS JOINTLY OWNED BY SOME 2.8 MILLION MILK

PRODUCERS IN GUJARAT, WITH MILK COLLECTION AVERAGE OF 10MILLION LITRES/DAY

IT IS ALSO THE WORLD'S BIGGEST VEGETARIAN CHEESE BRAND.


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yAutomatic Milk Collection System units (AMCUS) at village

societies were installed in the first phase to automate milk

producers logistics.yAMCUS facilitated to capture member information, milk fat

contents, volume collected and amount payable to each

members electronically via a plastic

card for identification.


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Now officials at AMUL are planning to upgrade the

plastic card to SMART cards to facilitate farmers to

withdraw money from ATMs

Initiatives have been taken for online order

placement for AMULs products as a result of which

AMUL is today exporting products to West Asia, Africa

and U.S.A.

AMUL also planning to double the production

by 2020 to fulfill the future demand.


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Cooperative have a unique place in growth of

the rural India, this is the only tool by which

the problem of scarcity of resources can be

eliminated. But there is a need to revamp the

cooperatives structure & status to achieve

the full fledged benefits of it.

Documents

Challenges Faced by Cooperatives