Cooperative Sector in

India
Cooperative movement in
India
India, since the country's independence
from Britain in 1947, has seen a huge
growth in cooperative societies, mainly
in the farming sector.
The country has networks of
cooperatives at the local, regional,state
and national levels that assist in
agricultural marketing.
The commodities that are mostly
handled are food grains, jute, cotton,
sugar, milk,fruit and nuts.
 Co-operative Sector

In India the cooperative sector has been assigned an

important role in the development of many sectors. In
the first five year plan it undertook areas like
agricultural, rural and small scale industries, retail
distribution, housing. The important objectives of the
co-operative sector area :
1) Prevention of concentration of economic power
2) Wider disbursal of ownership of productive resources
3) Active involvement of people in the development
programs
4) Speedier economic development
5) Liquidation of unemployment and poverty.
Acooperative is "an
autonomous association of
persons united voluntarily to
meet their common economic,
social, and cultural needs and
aspirations through a jointly-
owned and democratically-
controlled enterprise"
Definition
According to Indian Co-operative
Societies Act 1912, Section 4, Co-
operative is “ a society which has its
objectives-the promotion of economic
interest of its members in accordance
with co-operative principles”.
According to Calvert,” a form of
organization wherein persons voluntarily
associate together as human beings on
the basis of equality for the promotion of
the economic interest of themselves”
Features
Voluntary Association
Association of persons
Open and unrestricted membership
Democratic management
Separate legal entity
Service motive
Capital
Government control
Self-help and Mutual help
Rural concentration
Structure of Co-operative
societies
◦ Agricultural credit societies
◦ Employee co-operative credit
societies
◦ Housing co-operatives
◦ Consumer co-operatives
◦ Producers co-operatives
◦ Industrial co-operatives
Merits
Organization for the poor
Mutual help and sharing
Soften class conflict
Helpful to agriculture
Overcome the problems of sub-
division and Fragmentation
Democratic values
Development of small sector
Gains to consumers
Rural development
Encouragement to savings and
thrift
Social benefits
Demerits
Inadequacy of funds
Huge loss
Political interference
Lack of interest
Inefficiency and corruption
Problems of overdues
Importance of loan
Mismanagement
Non-performing assets
Lack of Enthusiasm
 Co-operative Sector
The factors which lead to the relationship between the
state and co-operatives are :
1)Need to give legal recognition to cooperative societies
and to provide proper management and supervision
in the interest of the movement
2)The need to safeguard the rights of the people
(society)
3)Need to prevent any abuse to cooperatives
4)Need to promote the movement because nobody
other than government will initiate promotion. This
was the best means of national development. It
solves the problem of lack of leadership and local
personnel for the diffusion of new ideas and
techniques.
 Co-operative Sector
Problems :
1)There are wide regional disparities, the level of
development of agricultural cooperatives is not
uniform in all states.
2)Many co-operative societies are virtually out of use.
3)Many others are suffering due to financial,
organisational and administrative problems.
4)The co-operative movement in India is very adversely
affected by political overshadowing.
5)Many co-operatives are controlled by politicians or the
economically powerful members.