Cooperatives are member-owned enterprises. They aim to meet the economic, social, and cultural needs of their members. The cooperative movement in India is one of the world’s largest, with over 800,000 cooperatives. These span various sectors, including agriculture, credit, dairy, housing, and fisheries. The cooperative model prioritises community welfare over profit.
Historical Roots
The cooperative movement in India draws inspiration from the ancient Indian ethos of unity and mutual support. The principle of Vasudhaiva Kutumbakam, meaning “the world is one family,” has influenced cooperative values. Early forms of cooperation existed in village communities, focusing on collective activities and resource sharing.
Types of Cooperative Societies
Cooperatives in India can be classified into several types:
- Consumers’ Cooperative Society: Provides goods at fair prices, eliminating middlemen. Examples include Kendriya Bhandar and Apna Bazar.
- Producers’ Cooperative Society: Supports small producers with essential resources. Notable examples are APPCO and Haryana Handloom.
- Cooperative Marketing Society: Aids small producers in marketing their products. The Gujarat Cooperative Milk Marketing Federation (AMUL) is a key player.
- Cooperative Credit Society: Offers financial assistance through deposits and loans. Examples include Urban Cooperative Banks.
- Cooperative Farming Society: Formed by small farmers for collective benefits. Examples include lift-irrigation cooperatives.
- Housing Cooperative Society: Provides affordable housing options. Examples include Employees’ Housing Societies.
Evolution of the Cooperative Movement
The cooperative movement in India can be divided into two main phases – pre-Independence and post-Independence.
Pre-Independence Era
The formal cooperative movement began in 1904 with the Cooperative Credit Societies Act. This act established norms for cooperative societies but was limited in scope. The Cooperative Societies Act of 1912 expanded these norms. The Maclagan Committee in 1914 recommended a three-tier cooperative banking system. The Government of India Act of 1919 allowed provinces to create their own cooperative laws.
Post-Independence Era
After Independence in 1947, cooperatives became integral to India’s economic planning. The First Five-Year Plan (1951-56) emphasised cooperatives for community development. The establishment of the National Cooperative Development Corporation (NCDC) in 1963 supported cooperative growth. The Multi-State Cooperative Societies Act of 2002 streamlined laws for multi-state cooperatives.
Recent Developments
The Ministry of Cooperation was established on July 6, 2021. It aims to create a robust framework for cooperatives. The ministry focuses on modernising cooperatives and enhancing their governance. Key initiatives include computerisation and promoting Multi-State Cooperative Societies.
Key Government Initiatives
Several initiatives have been launched to strengthen the cooperative sector:
- Model Bye-Laws for PACS: New bye-laws enable PACS to undertake diverse activities.
- Computerisation of PACS: A project aims to enhance efficiency in 63,000 PACS.
- Decentralised Grain Storage Plan: Establishes warehouses at PACS level to reduce waste.
- Formation of Farmer Producer Organisations (FPOs): Additional FPOs will improve market linkages for farmers.
- Retail Petrol/Diesel Outlets: PACS can apply for petrol and diesel outlets.
Impact of Cooperatives
Cooperatives have impacted rural communities:
- Empowering Marginalised Communities: The Amul Dairy Cooperative empowers millions of milk producers, particularly women.
- Boosting Agricultural Productivity: IFFCO provides essential inputs, increasing farmers’ productivity.
- Access to Essential Services: Kerala’s Milma ensures affordable dairy products for consumers.
- Job Creation: Sugar cooperatives in Maharashtra employ over 500,000 individuals.
Challenges Faced by Cooperatives
Despite their success, cooperatives face several challenges:
- Governance Issues: Lack of transparency and accountability can undermine cooperative effectiveness.
- Financial Access: Many cooperatives struggle to secure funding due to inadequate documentation.
- Socio-economic Disparities: Structural inequalities can limit participation in cooperatives.
- Infrastructural Constraints: Poor infrastructure affects the efficiency of cooperative operations.
- Technical Capacity: Insufficient training hampers the development of cooperative members.
Future of the Cooperative Movement
The future of the cooperative movement in India looks promising. The government’s commitment to encouraging cooperatives is evident through various initiatives. The upcoming Global Conference of the International Cooperative Alliance (ICA) in November 2024 will further highlight India’s cooperative achievements.
Cooperatives and Economic Growth
Cooperatives play a vital role in India’s economic landscape. They contribute to agricultural loans, fertilizer distribution, and food production. The cooperative sector is essential for promoting financial inclusion, especially in rural areas.
