cooperative in India

8/7/2019 cooperative in India

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Speaker Priyesh DhoundiyalId. No. 29993





Derived from Latin wordCo-operari

Co - ´TogetherµOperari- ́ WorkingµIt is a sort of association of persons ,joined forcommon purpose which they can not achieve

separately.





Cooperatives are based on the values of selfhelp, self responsibility, democracy, equalityand solidarity.



V oluntary and open membership.Democratic member control.Member economic participation.A utonomy and independence.Education, Training and Information.Co-operation among cooperatives.Concern for community.



Largest in the world in terms of thenumber of cooperatives and membership;

around 504,000 cooperatives in 1998serving 209 million people of which 65%agricultural cooperatives with 137 millionmembership of primary agriculture co-operative.



A ctive in agro-processing ² 320 cooperative sugarfactories producing more of 60% of sugar produced inthe country; around 90,000 dairy cooperatives making

India the largest producer of milk; specializedcooperatives for oilseeds, rubber, horticulture andfertilizerStrongly backed by cooperative education and stafftraining ² largest in the world training managers andproviding member education



In fertilizer production and distribution theIndian Farmers Fertilizer Cooperative (IFFCO)commands over 35 percent of the market.In the production of sugar the cooperativeshare of the market is over 58 percent and inthe marketing and distribution of cotton theyhave a share of around 60 percent.The cooperative sector accounts for 55 percentof the looms in the hand-weaving sector.



Cooperatives process, market and distribute 50percent of edible oils.Dairy cooperatives operating under theleadership of the National Dairy DevelopmentBoard and through 15 state cooperative milkmarketing federations has now become thelargest producer of milk in the world.



The seeds of cooperation in India were sown in1904 when the first Cooperative Societies Act waspassed.Cooperatives have extended across the entirecountry and there are currently an estimated230 million members nationwide.

The cooperative credit system has the largestnetwork in the world and cooperatives haveadvanced more credit in the Indian agriculturalsector than commercial banks.





Promotion and Strengthening of CooperativeMovementCooperative Education and TrainingResearch StudiesPublications, Publicity and Public RelationsDevelopment of Inter-Cooperative RelationsCollection and Dissemination of CooperativeInformationA dvocacy of Cooperative Opinion and viewsPromotion of International Cooperation andCooperative to Cooperative Trade



Production credit Investment CreditCo-operative (3 tier) Co-operative(2 tier)

Short and medium term Long term loansloans



National levelNational federation of state co-operative bank

State levelState co-operative bank

District levelDistrict co-operative bank

Primary levelPrimary agriculture societies, eg. P A CS, FSS



National levelNational cooperative agricultural land andrural development bank federation.State levelState A gricultural land and Ruraldevelopment banks.Primary levelPrimary A gricultural land and Ruraldevelopment banks.



Provides seasonal loans for crop production.Supplies agricultural inputs to farmersMedium term loan are also provided for minorimprovement in land, purchases of milch cattleand agricultural implements.

Distribution of essential consumer items.Maintaining linkage with cooperative marketingsocieties for maintaining inputs, consumer goodsand marketing of agricultural produce.

It provides relief to the members by convertingSTL to MTL in case crop loan is more than 50%due to natural calamities.



FSS introduced in the country in 1973 onrecommendation of National commission onagriculture.A commercial bank or central cooperative bankcan launch a FSS.A FSS initially covers around 8 to 10 villagesand then subsequently the whole block.



To provide all types of credit(short, mediumand long term).FSS directly involves in ensuring inputs andother services or may enter in contract withother agencies.Construction of wells, minor irrigation works,go down etc.To encourage provision of facilities fordeveloping subsidiary occupation like dairy,farm forestry etc.



State government and financing bankcontribute to share capital.Grant and subsidies from government.Deposits and membership fee.





(Anand Milk-producers Union Limited ),formed in 1990, is a dairy cooperative

movement in India . It is a brand namemanaged by an apex cooperativeorganisation, Gujarat Co-operative MilkMarketing Federation Ltd. (GCMMF),which today is jointly owned by some 2.41million milk producers in Gujarat , IndiaIt is also the world's biggest vegetarian

cheese brandturnover of US 2 cents (2005-06) .Currently A mul has 2.41 million producermembers with milk collection average of5.08 million litres/da.



Automatic Milk Collection System units(AMCUS) at village societies were installed inthe first phase to automate milk producers

logistics.

AMCUS facilitated to capture member information, milk fat contents, volumecollected and amount payable to eachmembers electronically.



O n an average, around thousand farmerscome to sell milk at their local co-operativemilk collection centre.

Each farmer has been given a plastic cardfor identification



At the milk collection counter, the farmer drops the cardinto a box and the identification number is transmitted toa personal computer attached to the machine.

The milk is then weighed and the fat content of the milk ismeasured by an electronic fat testing machine. Boththese details are recorded in the PC.

The computer then calculates the amount due to farmer on the basis of the fat content. The value of the milk isthen printed out on a slip and handed over to farmer whocollects the payment at adjacent window.



G oing forward, there are plans to introducefeatures like Internet banking services and ATMswhich will enable milk societies to credit

payments directly to the seller¶s bank account.

In line with this vision, officials at Amul arelooking at upgrading the plastic cards which arebeing currently used only for identificationpurposes, to smart cards which can be used towithdraw cash from ATMs.



O nline order placements of Amul¶s productson the web.Company has started receiving queries

from overseas agents for distribution of itsproducts in countries like US, Britain, NewZealand, Singapore and Thailand.As a result of on-line initiatives, today, Amul

exports products worth around US$ 25million to countries in West Asia, Africa andUSA



Indian Farmers Fertiliser Co-operative Limited(IFFCO) was registered on November 3, 1967 asa Multi-unit Co-operative SocietyThe number of co-operative societies associatedwith IFFCO have risen from 57 in 1967 to 38,155 at present.The distribution of IFFCO's fertiliser isundertaken through over 38155 co-operativesocieties.



Ownership and Democratic Control.Local Leadership DevelopmentLower Production and Marketing CostsIncreased Farm Income through:

1) Economies of size or scale;2) Distributing to farmers any net savings made

in handling, processing, and selling.3)Improved Farm Management.



Constraints

The Co-operative Sector, in spite of its voluminousgrowth and its significant contribution to various sectorsof national economy is beset with several constraints,such as:

Elections are not held regularly.Supersession of Board of Directors and appointment of Administrators for undue longer period.General Body meetings are not held regularly.Audit is not professional. It is also not conducted intime.

There is undue and unnecessary political interference andbureaucratic control even in their day-to-day affairs.Unprofessional management leading to high operationalcost and delayed delivery of services to members.Lack of member participation.Poor system of monitoring and inadequate checks and

balances.



Due to these constraints:

H eavy erosion in their democratic and autonomousfunctioning.Most of the grassroots co-operatives are not self-reliant and heavily dependent on GovernmentAssistance.

Management not responsive to the needs of themembers and not truly accountable to them.

Sickness is increasing resulting in large number of defunct / dormant societies.

Co-operatives are not well equipped to face thechallenges of open and competitive market orientedeconomy. As a result, they are not only loosingground in their traditional areas of activities but also

unable to enter into new ventures.



I nitiatives taken by the Central Government .

Braham Perkash Committee recommended a µModel Co-operatives

Act¶, which was circulated to all States.

The µModel Co-operatives Act¶ was discussed in Conference of State

Co-operative Ministers held in July 1992.

Conference was of the view that Central Government might take a

lead by amending Multi-State Co-operative Societies Act, 1984.

The Multi-State Co-operative Societies Act, 1984 has since beenreplaced by Multi-State Co-operative Societies Act, 2002 .



The basic role of Government is to provide a legislative and policy

framework conducive for development of co-operatives.

The Central Government have initiated several measures includingenunciation of a National Policy on Co-operatives and enactment of

Multi-State Co-operative Societies Act, 2002.

State Co-operatives are governed under the Co-operative Societies

Acts enacted by the State Governments.

State Acts still provide a rigid regulatory regime

Many State Governments are reluctant amend their Acts to liberalize

the control regime.

This calls for a Constitutional Amendment to address the problems of

the State Co-operatives and also to bring uniformity in control and

governance these co-operatives.



MaharastraThe area under sugarcane cultivation hasgrown from about five lakh hectares in 2005-6to over 8.40 lakh hectares in 2006-7. The sugarproduction has increased from 62 lakh tonnesto 91 lakh tonnes, respectively. Consequently,estimated 25 lakh tonnes of sugarcane couldnot be crushed.



100100%% grantsgrants--inin--aidaid isis providedprovided toto NCCTNCCT forforconducting conducting training training programsprograms. .100100%% grantsgrants--inin--aidaid isis providedprovided toto NationalNational CoCo--operativeoperative UnionUnion ofof IndiaIndia (NCUI)(NCUI) forforimplementing implementing specialspecial schemescheme ofof

´Intensification´Intensification of of CooperativeCooperative EducationEducation(through(through fieldfield projects)projects) inin CooperativelyCooperativelyUnderUnder--developeddeveloped StatesµStatesµ2020%% grantsgrants--inin--aidaid isis providedprovided toto NCUINCUI forforapprovedapproved activitiesactivities likelike;; educationeducation programsprograms

forfor youthyouth andand women,women, publicationpublication ofof booksbooksandand running running DataData BankBank andand NationalNational CentreCentreforfor CoCo--operativeoperative Education(NCCE)Education(NCCE). .SeparateSeparate allocationallocation forfor NN..EE.. RegionRegion StatesStates bothbothforfor CoCo--operativeoperative EducationEducation andand Training Training. .



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