Rucha Puntambekar

 “An association of persons usually of limited

means, who have voluntarily joined together,
to achieve a common end, through the
formation of a democratically controlled
business organisation, making equitable
contribution to the capital required and
accepting a fair share of the risks and the
benefits of the undertaking.”
 Association of persons
 Limited means
 Voluntary Association
 Common economic end
 Democratic Control
 Members contribution to capital equitably
 Acceptance of fair share of benefits and risks
 Housing Co-operatives
 Building Co-operatives
 Retailer’s Co-operative
 Worker Co-operative
 Farmer’s Co-operative
 Banking Co-operative
 Consumer’s Co-operative
 Companies Amendment Act 2000 made it
possible to create co-operatives as company
 Objectives: Production, Processing ,
manufacture, Sales of primary produce
 Member’s equity is not publicly traded but can
be transferred with the permission of the Board
of Directors
 Producer Companies are not vulnerable to take
over by MNCs and other indigenous companies.
 Existing Co-operatives can be converted into
producer company and reconverted into co-
operative society, if the majority so desire.
 Open Membership
 Voluntary Association
 State Control
 Sources of Finance
 Democratic Management
 Service Motive
 Separate Legal Entity
 Distribution of Surplus
 Self-help through mutual co-operation
 Enterprise but not a charitable association
 Members place on basis of equality
 England and Germany: Birthplace of co-
operative movement
 1844: Group of weavers set up a society with
capital of 28
 Influenced by Robert Owen, Dr. William King
and William Thompson
 Co-operative Store of consumers
 1988: 2.5 million profit and 1123 stores
 To take up production and distribution of
commodities required by the members
 To make housing amenities and clothing
requirements available to its members and
improve standard of living
 To arrange for education of its members
 To manufacture articles to generate
employment for its members
 F.W. Raiffeisen (1818-1888) “ Poor People’s
Committee‘” for Farmers
 Each for all and all for each
 Franz Schulze (1809-1883) : Society for Relief
Sickness to cater to requirements of traders,
artisans and urban middle class
 To run bank as business organisation
 Moral development
 Mutual support
 Material advantage
 United action and fostering of self-reliance
 Effective realization of higher and better
standard of life
 Nicholson introduced Raifferson Model of
German Agricultural Credit Co-operatives
 Co-operative Society Act 1904
 Formation of Agricultural Credit Co-operatives
 Direct Legal Entity
 National Co-operative Union of India (1929)
 National Co-operative Development and
Warehousing Board (1956)
 National Co-operative Development Co-
operation (1963)
 NCDC Act (1962)
 1965-66: 35 thousand
 2002-03: 545 thousand
 46% Agriculture Credit Disbursement
 36% Fertilizer Distribution
 59% Sugar Production
 32% Wheat Procurement
 65% Storage Facility
 Poor Infrastructure
 Lack of awareness
 Lack of quality management
 Over-dependence of Government
 Dormant Membership
 No Elections
 No strong human resource policies
 Neglect of professionalism
 Restricted Coverage
 No strong communication and public relations
strategies
 Fund Mobilization
 State Government as venture capitalist
 Linkages to Panchayats, Nagar Palikas, Self-
Help Groups, Banks and other financial
institutions for communication and finance
objective