cooperative institutions

8/4/2019 Cooperative Institutions

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Role of Co-operative

Institutions in RuralMarketing

Ashish Raina 58

Rajesh Baranwal 05


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What is a cooperative society?

A cooperative society is an autonomousassociation of persons united voluntarily tomeet their common economic, social and

cultural needs and aspirations through ajointly-owned and democratically controlledenterprise

During a century(106)

5.45 lakh individual cooperative organizations

236 million members

Rs34,00,555millions working capital


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Important Segments of Indian Cooperatives Cooperative education and training

Agricultural credit cooperatives (production)

Agricultural credit cooperatives (investments)

Non agricultural credit cooperatives (urban banks)

Cooperative marketing

Tribal cooperatives

Fertilizer cooperatives

Consumer cooperatives

Weaver cooperatives

Sugar cooperatives

Cooperative spinning mills

Industrial cooperatives (non weavers)

Dairy cooperatives

Fisheries cooperatives

Housing cooperatives

Labour cooperatives

Poultry cooperatives


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Co-operatives as Organizations

The co-operative society works as self governinginstitutional agency.

Co-operative society was first introduced under theCooperative Credit Societies Act, year1904.

The CCS Act 1912 permits the registration of

co-operative societies.

The main intention is to bring persons desirous to haveeconomic activity together, sharing the function in asuch a way that it benefits them individually orcollectively.

The central & state govt.take the lead in formation ofcooperative society at state, district & village levels.


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The best-suited form of organization for rural people is cooperatives. E.g.Dairy cooperatives, oil seed growers federation cooperatives(Vijaya Oils.AP)

Autonomous association of persons united voluntarily to meet theircommon economic, social and cultural needs and aspirations through ajointly owned and democratically controlled enterprise

Membership is open to all other who are interested. The society has toregister with the State co-operative department & get legal status.

The general body meets at least once in a year to make policy decisions,review the performance & set out future plans.

Sate govt., National Bank for Agricultural and Rural Development(NABARD) 1981. & National Cooperative Development Corporation (NCDC)(1962) contribute towards share capital.


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The Krishak Bharati Cooperative Limited (KRIBHCO) of India is thelargest cooperative based fertilizer unit in the world.

The Indian Farmers fertilizers Cooperative Federation (IFFCO) is also

a renowned name for its fertilizer products from cooperatives.

The National Cooperative Marketing Federation (NAFED),

The National Cooperative Consumers Federation (NCCF), are

famous for cooperative marketing and consumers activities

respectively.

The utterly delicious Amul products of Gujarat are successful

contribution from dairy cooperatives.

Co-optex of Tamilnadu is successfully exporting its weaver produces

through its co-optex international wing.


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Structure of Cooperative Organizations.R

The cooperative follows a three tier structure for all types of

organization.

Three tier, state level organization promotes district level

organization, in turn it promotes tahsil or village level

organization.

The Union Government has introduced The Constitutional (One Hundred andSixth Amendment) Bill, 2006 in the Parliament on 22nd May, 2006.

The Central Government is committed to ensure that the co-operative societies in the

country are functioning in a democratic, professional, autonomous and economically

sound manner. With a view to bring the necessary reforms, it is proposed toincorporate a new Part in the Constitution so as to provide for certain provisions

covering the vital aspects of working of co-operative societies like democratic,

autonomous and professional functioning. The proposed new Part in the Constitution,

inter alia, seeks to empower the Parliament in respect of multi-State co-operative

societies and the State Legislatures in case of other co-operative societies to make

appropriate law laying down the matter.


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Structure of Cooperative Organizations

State State Cooperative Banks (SCBs)

District

District Central Cooperative Banks(DCCBs)

Tahsil Primary Agriculture Credit

Societies (PACS)


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Objectives of Cooperatives

Creation of employment

Price holding and stability

Agricultural production will increase

Increased GDP & International trade links

Public distribution system will be strengthened

Creation of social assets

To re-organize rural economy To develop social services in the common interest of

the village.


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Co operative Banks

The co operative banks in India was introduced in1904

The cooperative bank is an important constituent ofthe indian financial system, the importance of such

banks have assumed in india is rarely paralleledanywhere else in the world.

The cooperative banks in india plays an importantrole even today in rural financing. The businessess of

cooperative bank in the urban areas also hasincreased phenomenally in recent years due to thesharp increase in the number of primary co-operativebanks.


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Co operative Banks.

Co operative Banks in India are registered under the Co-operative Societies Act.The cooperative bank is also regulated by the RBI. They are governed by theBanking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act,1965.

Cooperative banks in India finance rural areas under: Farming

Cattle

Milk

Hatchery

Personal finance

Cooperative banks in India finance urban areas under: Self-employment

Industries

Small scale units

Home finance

Consumer finance

Personal finance


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Share of Cooperatives in National Economy

Two-thirds of its workforce is engaged in agricultural and allied

activities, which contribute about 27% of Indias gross domestic

product.

National Cooperative Union of India, the apex body of all

cooperatives data reveals that, 100% of rural network has been

covered & 67% of rural households are the members. Over 50% of

the adults are the members

Some sectors of economic activity, cooperatives have

commanding shares like-

Cotton Marketed / Procurement

Sugar Produce & Utilization

Handlooms Cooperatives

Oil Marketed / Procurement


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Types of co-operative society

1.Consumers Co-operative Society: Reasonable price

2.Producers Co-operative Society: For Small producers

3.Co-operative Credit Society: Financial support

4.Co-operative Marketing Society: Gujarat Co-operative MilkMarketing Federation

5.Co-operative Farming Society: Pani-panchayats6.Housing Co-operative Society:

Metropolitan Housing Co-operative Society


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Impact of Cooperative Society in Rural Market

Increases bargaining strength of the farmers

Direct dealing with final buyers Provision of credit

Easier and cheaper transport

Storage facilities Grading and standardization

Market intelligence

Influencing marketing prices

Provision of inputs and consumer goods Processing of agricultural produce Distribution has to be used in coverage & extension of

rural market.


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Thank U


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Impact of Cooperatives on Rural Market Distribution has to be used in coverage & extension of rural

market.

Cooperative organizations are in distribution & collection logisticsbecause of their widespread nature.

Widespread ( well-connected with every rural area)

Membership extends about 67% of rural households.

Cooperatives are encouraged & backed by central & stategovernments.

At rural area cooperative commands 63% of storage facility.

Cooperatives play vital role in rural areas in collection &

distribution, as well as the potential for future growth.

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