You are on page 1of 36

Speaker Priyesh Dhoundiyal Id. No.


Derived from Latin word Co-operari Co - ´Togetherµ Operari- ´Workingµ It is a sort of association of persons ,joined for common purpose which they can not achieve separately.

. social and cultural needs and aspirants through a jointly owned and democratically controlled enterprise.Š A co-operative is an autonomous association of persons united voluntarily to meet their common economic.

equality and solidarity. .Š Cooperatives are based on the values of self help. democracy. self responsibility.

Training and Information. Co-operation among cooperatives. Concern for community. . Autonomy and independence. Education. Member economic participation.Š Š Š Š Š Š Š Voluntary and open membership. Democratic member control.

000 cooperatives in 1998 serving 209 million people of which 65% agricultural cooperatives with 137 million membership of primary agriculture cooperative. around 504.‡ Largest in the world in terms of the number of cooperatives and membership. .

specialized cooperatives for oilseeds. rubber.Active in agro-processing ² 320 cooperative sugar factories producing more of 60% of sugar produced in the country. horticulture and fertilizer ‡ Strongly backed by cooperative education and staff training ² largest in the world training managers and providing member education ‡ . around 90.000 dairy cooperatives making India the largest producer of milk.

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

.Š Š Cooperatives process. Dairy cooperatives operating under the leadership of the National Dairy Development Board and through 15 state cooperative milk marketing federations has now become the largest producer of milk in the world. market and distribute 50 percent of edible oils.

The cooperative credit system has the largest network in the world and cooperatives have advanced more credit in the Indian agricultural sector than commercial banks. Cooperatives have extended across the entire country and there are currently an estimated 230 million members nationwide.Š Š Š The seeds of cooperation in India were sown in 1904 when the first Cooperative Societies Act was passed. .

It was established in 1929 as All India Cooperative Institutes Association and was rechristened as National Cooperative Union of India in 1961 .The National Cooperative Union of India (NCUI) is an Apex Cooperative Organisation in India which represent all the segments of Indian Cooperative Movement. to build up and expand the cooperative sector and serve as an exponent of cooperative opinion in accordance with cooperative principles. guide and assist the people in their efforts. to educate. Its objectives are to promote and develop the cooperative movement in India.

Publicity and Public Relations Development of Inter-Cooperative Relations Collection and Dissemination of Cooperative Information Advocacy of Cooperative Opinion and views Promotion of International Cooperation and Cooperative to Cooperative Trade .Š Š Š Š Š Š Š Š Promotion and Strengthening of Cooperative Movement Cooperative Education and Training Research Studies Publications.

Š Production credit Co-operative (3 tier) Short and medium term loans Investment Credit Co-operative(2 tier) Long term loans .

eg. FSS .Š National level National federation of state co-operative bank State level State co-operative bank District level District co-operative bank Primary level Primary agriculture societies. PACS.

Š Š Š National level National cooperative agricultural land and rural development bank federation. Primary level Primary Agricultural land and Rural development banks. . State level State Agricultural land and Rural development banks.

Distribution of essential consumer items. consumer goods and marketing of agricultural produce. purchases of milch cattle and agricultural implements.Š Š Š Š Š Š Provides seasonal loans for crop production. It provides relief to the members by converting STL to MTL in case crop loan is more than 50% due to natural calamities. . Maintaining linkage with cooperative marketing societies for maintaining inputs. Supplies agricultural inputs to farmers Medium term loan are also provided for minor improvement in land.

. A FSS initially covers around 8 to 10 villages and then subsequently the whole block. A commercial bank or central cooperative bank can launch a FSS.Š Š Š FSS introduced in the country in 1973 on recommendation of National commission on agriculture.

. go down etc. medium and long term). farm forestry etc. FSS directly involves in ensuring inputs and other services or may enter in contract with other agencies. Construction of wells. minor irrigation works.Š Š Š Š To provide all types of credit(short. To encourage provision of facilities for developing subsidiary occupation like dairy.

Deposits and membership fee.Š Š Š State government and financing bank contribute to share capital. Grant and subsidies from government. .


formed in 1990. India ‡It is also the world's biggest vegetarian cheese brand ‡turnover of US 2 cents (2005-06) .‡(Anand Milk-producers Union Limited). which today is jointly owned by some 2. . Currently Amul has 2. (GCMMF). Gujarat Co-operative Milk Marketing Federation Ltd.41 million producer members with milk collection average of 5. is a dairy cooperative movement in India.41 million milk producers in Gujarat.08 million litres/day ‡. It is a brand name managed by an apex cooperative organisation.

milk fat contents. ‡ AMCUS facilitated to capture member information.‡ Automatic Milk Collection System units (AMCUS) at village societies were installed in the first phase to automate milk producers logistics. volume collected and amount payable to each members electronically. .

Each farmer has been given a plastic card for identification Š . around thousand farmers come to sell milk at their local co-operative milk collection centre.Š On an average.

The milk is then weighed and the fat content of the milk is measured by an electronic fat testing machine. ‡ ‡ . Both these details are recorded in the PC. The value of the milk is then printed out on a slip and handed over to farmer who collects the payment at adjacent window. The computer then calculates the amount due to farmer on the basis of the fat content. the farmer drops the card into a box and the identification number is transmitted to a personal computer attached to the machine.‡ At the milk collection counter.

.‡ Going forward. to smart cards which can be used to withdraw cash from ATMs. officials at Amul are looking at upgrading the plastic cards which are being currently used only for identification purposes. ‡ In line with this vision. there are plans to introduce features like Internet banking services and ATMs which will enable milk societies to credit payments directly to the seller¶s bank account.

Britain. Company has started receiving queries from overseas agents for distribution of its products in countries like US. Singapore and Thailand. New Zealand. As a result of on-line initiatives. Africa and USA .Š Š Š Online order placements of Amul¶s products on the web. today. Amul exports products worth around US$ 25 million to countries in West Asia.

. 1967 as a Multi-unit Co-operative Society The number of co-operative societies associated with IFFCO have risen from 57 in 1967 to 38.Š Š Š Indian Farmers Fertiliser Co-operative Limited (IFFCO) was registered on November 3. The distribution of IFFCO's fertiliser is undertaken through over 38155 co-operative societies. 155 at present.

Ownership and Democratic Control. processing. and selling. 2) Distributing to farmers any net savings made in handling. Š Local Leadership Development Š Lower Production and Marketing Costs Š Increased Farm Income through: 1) Economies of size or scale. 3)Improved Farm Management. Š .

It is also not conducted in time. in spite of its voluminous growth and its significant contribution to various sectors of national economy is beset with several constraints.Constraints The Co-operative Sector.  Poor system of monitoring and inadequate checks and balances. 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.  There is undue and unnecessary political interference and bureaucratic control even in their day-to-day affairs.  Audit is not professional.  Unprofessional management leading to high operational cost and delayed delivery of services to members.  Lack of member participation.

   . autonomous Most of the grassroots co-operatives are not selfreliant and heavily dependent on Government Assistance. Management not responsive to the needs of the members and not truly accountable to them. they are not only loosing ground in their traditional areas of activities but also unable to enter into new ventures.Due to these constraints:   Heavy erosion in their democratic and functioning. 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.

. which was circulated to all States. 2002. Conference was of the view that Central Government might take a lead by amending Multi-State Co-operative Societies Act.Initiatives taken by the Central Government . The µModel Co-operatives Act¶ was discussed in Conference of State Co-operative Ministers held in July 1992. 1984 has since been replaced by Multi-State Co-operative Societies Act. The Multi-State Co-operative Societies Act. 1984.     Braham Perkash Committee recommended a µModel Co-operatives Act¶.

 State Acts still provide a rigid regulatory regime  Many State Governments are reluctant amend their Acts to liberalize the control regime. The basic role of Government is to provide a legislative and policy framework conducive for development of co-operatives. to bring uniformity in control and .  State Co-operatives are governed under the Co-operative Societies Acts enacted by the State Governments.  This calls for a Constitutional Amendment to address the problems of the State Co-operatives and also governance these co-operatives. 2002.  The Central Government have initiated several measures including enunciation of a National Policy on Co-operatives and enactment of Multi-State Co-operative Societies Act.

. The sugar production has increased from 62 lakh tonnes to 91 lakh tonnes. Consequently. respectively. estimated 25 lakh tonnes of sugarcane could not be crushed.40 lakh hectares in 2006-7.Š Š Maharastra The area under sugarcane cultivation has grown from about five lakh hectares in 2005-6 to over 8.

CoTraining. education programs like. 100% grants-in100% grants-in-aid is provided to National CoCooperative Union of India (NCUI) for implementing special scheme of ´Intensification of Cooperative Education (through field projects) in Cooperatively UnderUnder-developed Statesµ 20% grants-in20% grants-in-aid is provided to NCUI for approved activities like. programs.    100% grants-in100% grants-in-aid is provided to NCCT for conducting training programs. . Separate allocation for N. publication of books and running Data Bank and National Centre for Co-operative Education(NCCE). CoEducation(NCCE). for youth and women. Region States both for Co-operative Education and Training.E.