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Cooperatives play an important role in the socio-economic development of the people of our
country. The cooperative movement in India, has taken deep roots in various sectors and is
making a significant contribution towards economic development and social progress of the
people.
An important place in the history of cooperatives since the first cooperative societies for
agricultural loan and consumer stores were established in Tamil Nadu. The cooperative societies
play a vital role not only in agricultural development and consumer service, but also in sectors
such as housing, textiles, dairy and fisheries which contribute significantly to the economic
development of the state. At present there are 25,768 cooperative societies functioning in the
state.
The importance that this Government attaches to the cooperatives is evident from the fact that
two out of the three sterling schemes of the government for which orders were issued by the
Hon¶ble Chief Minister in the presence of public on the very same day of assuming office on
13.05.2006 relate to the cooperation department. The order of the government waiving all
cooperative farm loans and interest thereon outstanding as on 31.3.2006 amounting to Rs.6866
crores to provide debt relief to a large number of farmers who have suffered on account of
successive natural calamities is an unprecedented step that no other government has done for the
farmers. Similarly the scheme of distributing rice at Rs.2 per kg is implemented through
26,429 fair price shops run by the cooperatives. The government have entrusted the major
responsibility of the successful implementation of these two schemes to the cooperatives and this
reflects the faith that the government has on the role played by the cooperatives in the
developmental process.
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Karnataka has the privilege of being pioneer in co-operative movement in the country. Co-
operatives have been playing a vital role in the economic upliftment of the people, particularly
the weaker sections in rural areas during the last hundred decades and more. The different types
of co-operatives in the state serve the people in the diverse economic activities. Its growth in
Karnataka has been so spectacular that at present, there is particularly no major sphere of
economic activity of the people which has not been touched by it.
Upto 1955, all types of co-operative societies in the State were under the administrative control
of the Registrar of Co- operative Societies. Since 1956-57, certain types and functions of
societies were transferred to the control of other Departments and statutory Boards from time to
time, conferring on the Heads of these departments or Boards, as the case may be, the powers
that of the Registrar. There are now fourteen such Functional Registrars, besides the Registrar of
Co-operative Societies.
The developmental activities covered by the co-operatives under the control of the Registrar of
Co-operative Societies relate to credit for Agricultural Production & Development, Urban credit,
Marketing and processing of agricultural produce, Distribution of agricultural inputs and supply
of consumer good particularly essential commodities through Consumer cooperatives and
implementation of Public Distribution System in the entire State and Co-operative Education,
Technical Education and Training and Propaganda / Publicity.
The cooperation department is mainly concerned with agricultural credit, market agricultural
produce, distribute fertilizers and essential commodities and with the legal framework which
governs the functioning of all cooperatives in the state of Karnataka. The objective of the
department is therefore to enable all the cooperatives that come within its fold to deliver services
to the satisfaction of their members and public, to facilitate the functioning and the growth of all
cooperatives.
The programme for the disbursement of loans by the cooperative societies for the year 2009-10
is given below.
1. Short term loans 1500
2. Medium term loans 126.00
3. Long term agricultural loans 100.00
4. Jewel loans 8487.78
5. Non-farm sector loans and other 579.60
loans
The activities of the cooperative societies in these schemes are furnished in detail in the
following chapters.
Cooperative credit institutions were evolved mainly to check the usurious practices of the
moneylenders and to provide loans to various sections of the population. The short-term rural
credit structure consists of three tiers with Karnataka State Apex Cooperative Bank at the state
level, district central cooperative banks at the district level and primary agricultural cooperative
banks at the village level. The long-term credit structure consists of Karnataka Cooperative State
Agriculture and Rural Development Bank at the state level and primary cooperative agriculture
and rural development banks at the Taluk / Block level. The cooperative urban banks provide
banking services to the people in the towns and cities.
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The basic aims of cooperative marketing are to arrange for the marketing of agricultural produce
of the agricultural members at a reasonable and remunerative price, to distribute farm inputs to
the agriculturists, to advance loans on the pledge of agricultural produce, to undertake processing
of the agricultural commodities and to help in better recovery of loans through linking of credit
with marketing.
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Karnataka Cooperative Marketing Federation was started in the year 1959. Karnataka
Cooperative Marketing Federation plays a vital role in the distribution of chemical fertilizers and
pesticides. The Federation has 38 godowns with a total capacity of 28640 MTs and 15 rental
godowns with a total capacity of 4650 MTs. The Federation acts as an agent of National
Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) for undertaking support
price operations in Karnataka.
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The cooperative marketing societies assist the farmer members to secure reasonable prices for
marketing their agricultural produces. They function as a bridge between producers and
consumers.
During the year 2009-10 the cooperative societies have marketed the agricultural produce to the
tune of Rs.1130.11 crores upto 31.3.2010.
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Organisational set up
In Karnataka consumer cooperatives have a three tier structure with Karnataka Consumer
Cooperative Federation at state level, cooperative wholesale stores at the district level and
primary cooperative stores at the base level.
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The 26 cooperative printing presses functioning under the Cooperative Department are catering
to the printing needs of all cooperatives, government, quasi government agencies, local bodies
and the general public in . Karnataka There are 12,688 members in the cooperative printing
presses with a paid up share capital of Rs.2.05 crores.
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For the benefit of hill tribes, 19 Large Sized Multi Purpose (LAMP) Cooperative Societies are
functioning in Tamil Nadu. These societies have 81650 tribal members and 9841 non-tribal
members. These societies provide interest free loans to the tribal people for cultivation and other
productive purposes. Government provides financial assistance in the form of subsidy every year
under the Tribal Sub Plan to the LAMP cooperative societies under various schemes, such as,
share capital subsidy, interest subsidy, transport subsidy and subsidy for drivers pay and
maintenance of vehicles.
The details of services rendered by the Lamp societies upto 31-3-2008 during the year 2007-
2008 is furnished below.
1. Loan Issue Rs.1799,72 Lakhs
2. Purchase of Agricultural Products Rs.212,66 Lakhs.
3. Supply of Agricultural inputs Rs.130.52 Lakhs.
4. Collection of Minor Farmer Products Rs.22.72 Lakhs.
5. Distribution of Consumer articles Rs.853.81 Lakhs.
6. Subsidy sanctioned by Govt. Rs. 90 Lakhs (2007-08)
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One of the primary duties of a welfare state is to ensure food security to its people. The
government attaches utmost importance to ensure availability of quality rice to all, specifically to
the poor and downtrodden at affordable price under the public distribution system. Keeping this
in mind, this government immediately after assuming charge issued orders reducing the selling
price of rice under public distribution system and Antyodaya Anna Yojana (AAY) to Rs.2/- per
kg with effect from 3-6-2006.
In Tamil Nadu, the public distribution system is operated through the fair price shops run by
Tamil Nadu Civil Supplies Corporation and cooperatives. The cooperatives play a prominent
role in the distribution of essential commodities to around 1.68 crore cardholders through an
extensive network of 21644 fair price shops. In addition to this, the cooperatives are also running
5602 part-time fair price shops and 36 mobile fair price shops to serve the families in remote and
inaccessible areas. There are 617 sub-retail outlets run by women and self help groups. The
cooperatives also run 266 kerosene bunks to distribute kerosene in the state.
Under AAY scheme, 35 Kgs of rice is distributed to every cardholder per month. In our state
15.41 lakhs people are getting the benefit under this scheme through the fair price shops run by
the cooperatives.
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With the intention of empowering women and enhancing their economic status, the government
has ordered for handing over certain fair price shops to women self help groups under the control
of the Tamil Nadu Women Development Corporation. As on 31-3-2008, women's self help
groups run 617 fair price shops in the state.
The scheme is implemented over a period of five years. The ICDP scheme was implemented in
the following 10 districts:-
Details of Projects completed (Rs. in lakhs)
Outlay Year of
S.No Name of the District
(Rs. In lakhs) Implementation
1. Virudhunagar 862.51 1989-95
Cuddalore Integrated
2. 1506.97 1992-97
South Arcot
Villupuram
3. ´ ³
District
4. Coimbatore 1080.99 1995-2001
5. Dharmapuri 1160.25 1995-2001
6. Tiruvannamalai 816.58 1996-2001
7. Kancheepuram 1123.88 1998-2005
8. Ramanathapuram 687.03 2000-2004
9. Tiruchirapalli 1216.98 2002- 2008
10. Perambalur 937.84 2002- 2008
121233
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At present ICDP is being implemented in the following four districts.
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Thanjavur 2002-03 to till 1101.09
1. 1101.09
date
Tiruvarur 2002-03 to till 1222.44
2. 1222.44
date
Theni 2005-06 to till 695.75
3. 987.73
date
Thoothukudi 2005-06 to till 638.49
4. 942.08
date
456224 276888
The detailed projects reports prepared by the consultants in respect of Salem, Erode, Madurai
and Pudukkottai have been cleared by the State Level Coordination Committee and the NCDC.
The administrative approved for implementation of the scheme in the alone districts is under
consideration of the Government. As regards Thirnelveli District, the NCDC has given its
approved and the detailed project report is under Examination.
The Government has related Dindigul, Karur, Vellore, Sivagangai and Nagaptattinam districts
for implementation of ICDP in the next stage of assistance. The NCDC has given its Commerce
for implementation of the scheme in the districts. Draft Project Reports for implementation of the
scheme was under preparation by the appointed consultants. The Government has also selected
the Nilgiris District for implementation of ICDP and the NCDC has given its approval in
principle.
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The Tamil Nadu Cooperative Union and the district cooperative unions are performing the
functions of cooperative education, training, advertisements and propaganda in the state.
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Training programmes are conducted for personnel working in the cooperative sector to upgrade
their skills and abilities for achieving excellence in cooperative management and administration.
There are 20 cooperative management training institutes in Tamil Nadu. These institutes conduct
training in cooperative management, short term computer courses and jewel appraisal. In
addition to these, job oriented and need based short term courses are also conducted by these
institutes every year for the employees of cooperatives. Correspondence courses are also
conducted for those cooperative employees who do not have the requisite cooperative training.
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To encourage innovative ideas in the cooperative sector, the Tamil Nadu Cooperative Union has
created a chair of Rs.5.00 lakh each in the Madras University, Madurai Kamarajar University,
Bharathiar University and Annamalai University. Out of the interest earned on the investment of
this deposit scholarships are awarded to the students doing research in the field of cooperation.
The Tamil Nadu Cooperative Union is maintaining two funds namely Cooperative Research and
Development Fund and Cooperative Education Fund. Every cooperative society which earns a
profit contributes 3% of the net profit to the Cooperative Research and Development Fund and
2% of the net profit to the Cooperative Education Fund. This fund is utilized for the cooperative
research, development, education, training and propaganda of the cooperative principles.
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1. Registrar of Co-operatives Societies Housing) 997
2. Commissioner, Milk Prod & Diary Development 9041
3. Director of Handlooms and Textiles 1411
4. Director of Fisheries 1256
5. Registrar of AGRO. Eng. Services 211
6. C.E.O. Khadi and Village Industries 1100
7. Commissioner of Industries and Commmerce 301
8. Director of Veterinary Services 526
9. Commissioner of Social Welfare 103
10. Commissioner of Sugar 15
11. Director of Sericulture 26
12. Director of Oil Seeds 285
13. Director of Rural Development 45
14. Director of Palm products Development Board
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