• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
Development of Indian Co-operatives
The Co-operative Movement, which has an ultimate goal of strengthening the position of economically weaker sections, can make a real contribution towards the progress of national community. Over 96 yrs co-operative activity has been undertaken and since, itgot a legal acceptance after the co-operative credit society act was passes in 1904.The main objective was to combat indebtness and provide credit to the agriculturalist.With reference to the agro based of Indian economy the co-operative sector has played asubstantial role in the process of lending a helping hand for economic upliftment.With the passing of time, the co-operative act was amended, with a net result that co-operation, expanded its role, from a mere agriculture credit provider to helping, in other inputs, like seeds, fertilizers, pesticides, storage, marketing and processing. It alsoexpanded into wholesaling and retailing trade, consumer distribution, rural and small-scale industries, urban credit, training of co-operative personnel etc.The Co-operative Movement has left no sector of the economy untouched. But inspite of its existence, for almost a century, it has definitely not shown an outstanding growth. Tostudy the growth and progress of co-operative movement we have to look back in thehistory.The first legislation in the field of Co-operation in India was on the Co-operative CreditSociety for releasing the farmers from the clutches of moneylenders. It was Co-operativeCredit Societies Act 1904, thereafter came the Co-operative Societies Act 1912. In order to suit the circumstances existing in different provinces, need was felt to have separatelegislation for the particular province .The Bombay province then enacted the BombayCo-operative Societies Act 1925. It is then replaced by Maharashtra Co-operativeSocieties Act 1960 and Rules 1961. 
Phase I : Co-operative Movement prior to 1904
The credit of initiating the co-operative movement as seen earlier goes to theRochdale Pioneers from England. The policies of organizational setup adopted by them, have survived the test of time and have become the principles of co-operative movement.Co-operation is not new to India, but the versions were different. In ancientIndia, it was in form of 4 principles like the ‘Kula, Gram, Sreni and Jati’.(hierarchy based on units)
•
 
Kula – Family
 
•
 
Jati – Caste
•
 
Gram – Village
•
 
Sreni – Classification at different levelsThe Kula was the 1
st
form of a co-operative activity; it was both a political andsocio-economic activity. As the society stabilized and expanded the aspects of economic and social co-operation narrowed to the limits of joint family. Wherethe land is owned and cultivated commonly and the adult members share theduties of the family and live under one roof. Co-operation at the Gram (village)level emerged after the Kulas were stabilized. The gram sabha was a co-operative engine which undertook, the works for economic and social progressof the village commons such as land, pastures, roads, highways, paths, commongardens, etc.The artisans and cultivators often combine for the purpose of co-operativeworking and the members jointly undertook, the use of selling of tools andimplements of production. The Sreni has been a development of the post Vedicera.The co-operative and economic organization in this time was more of artisans,industrial and handicrafts workers, merchants, traders, bankers, agriculturists,house builders, etc. The Sreni worked basically as bankers and merchants guilds but also extended their role as charitable institutions.The co-operation at Jati level was mainly for achieving social goals such aseducation, charity, and relief work. 
Phase II : Co-operative Movement (1904 – 1951)
Co-operation became legalized and was introduced as official movement in 1904. Thiswas considered as a turning point in the economic and social history of India. The period between 1904 – 1951 can be studied better if it is divided into the following stages.
I.
 
Between 1904 – 1912
1904 act provided an impetus for organization of primary credit societies and stress waslaid on promoting agricultural credit. There were 8187 societies by 1912, which had amembership of 4lakhs and working capital of 3357.7lakhs. One of the major features wasthat the government was the prime mover of this movement but the credit was marked byinsufficiency and delay, and the recoveries were far from satisfactory.
 
The loans system was also defective. Mr. C.S. Campbell, the registrar of co-operativesociety Bombay had correctly pointed out that, the lazy secretary of a dull sort, willcollect and pay out again to the same person by the book of transaction.The worse of the system is lump on another day, meanwhile a guest comes, a cow dies,etc are some of the excuses.
II.
 
Between 1912 – 1919
1912 saw the amendments, where another co-operative societies act was enacted and thedefects of the 1904 act were removed. Some important changes of the new act were:a.
 
It enabled the registration of non-credit societies so as to ensure all round progress of the movement and the economy. The original act confined the registration, only to primary, credit society. b.
 
Registration of Central societies was now possible.c.
 
A provision was made for the distribution of profits in order to protect the interests of the investors.This period saw a rapid growth in the number of co-operative credit societies but also of non-agricultural credit societies. Though the development was uneven in different provinces. By 1919 the number of seats had gone upto 28,000
III.
 
1919 – 1929
With the introduction of reforms act of 1919, it gave an option, of modifying the existingact 1912, at the provincial level. Certain provinces did enact their own acts, which gaverise to a rapid growth of the movement in this time. This is referred as the period of unplanned expansion.
IV.
 
1929 – 1939
The great economic depression gave a serious set back to the co-operative sector. Thefalling prices of the agricultural products threatened the existence of some societies anddisturbed the economic stability of others.Other major causes of the failure where, lack of requisite education and adequatesupervision and guidance. During this period of stress, rectification and rehabilitation wasthe main aim of the co-operative departments. Rather than expansion one of thesignificant development was the establishment of Reserve Bank of India in 1935. Itsagricultural credit department was entrusted the responsibility of studying the problemsof the agricultural credit.
V.
 
1939 – 1947
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...