Group no 2

[SYBMS]

Permission to start non credit supplying societies

Classification of societies as per their responsibilities / liabilities

Utilization of profit Special rights to societies Concessions to cooperative societies Restrictions in using cooperative in name Permission to establish central societies Share of societyIn 1917-1918 no of cooperative societies were

25192 – membership were up to 109 lakhs – working capital were 706.1 lakhs

Committee was appointed under the leadership of Sir Edward Mcgalon to study the cooperative society

Committee gave report in 1915 to government The committee made recommendations for

systematic development of cooperative society1. Limited to village2. Smaller3. Responsibilities / liabilities4. Deposits5. Recovery of loans6. Non cooperative societies7. Auditing8. Joint reserve fund9. capital

Royal commission

Year No of societies Membership Capital (in 000’s)

1918-19 30948 1229000 -

1921-22 52182 1974270 311225

1925-26 80182 3058625 576037

1927-28 96051 3070173 767877

1929-30 104184 4181904 895178

Vigorous blow Price Royal agriculture commission in1927

provincial banking inquiry commission in 1929 gave their recommendations for the improvement

1935 establishment of RBI Establishment of Land Mortgage Bank

Financial depression removed World war Price Consumer / Cooperative stores Industrial cooperative society

Committee leaded by Dr. Dhananjayroo Gadgil was

appointed In 1945 cooperative planning committee under the

president ship of Shri Saraiya was appointed

Year No of societies (in ooo’s)

Membership (in lakhs)

Capital (in crores)

1939 122 53.07 160.47

1943 146 69.01 121.14

1946 172 91.60 104.00

1947 139 90.00 156.00

After independence

Development of rural banking sector Formation of NABARD

Competition Brand building Distribution network Export

Despite rapid growth the overall progress of cooperative movement during 100 years of

Its existence is not very impressive. It is therefore necessary to know the causes of poor

Performance of the movement and on that basis take such steps as would promote a

faster growth of cooperative movement in India. Government Interference Mismanagement and manipulation Lack of Awareness Restricted Coverage Functional Weakness

Amul (Anand Milk Union Limited), formed in 1946, is a dairy co-operative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India.

AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing economy. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world It is also the world's biggest vegetarian cheese brand. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day.

Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away). Another problem farmers faced was that in winter the milk output of buffaloes doubled which caused prices to fall down even further. India ranked nowhere amongst milk producing countries in the world in 1946. Amul was the result of the realization that farmers could pool up their milk and work as a cooperative.

The White Revolution ushered an era of plenty from a measly amount of milk production and distribution. Aside from the great measurable success that this project was, it also demonstrated the power of "collective might". A small set of poor farmers of Kheda district in Gujarat had the vision and foresight to act in a way that was good for the society and not for the self alone.

Section 54 of the RBI act provides that the bank shall create special Agricultural Credit Development Fund and department to perform the following functions1. To maintain expert staff to study all questions

of agricultural credit and to make funds available after consulting the central government, state cooperative bank and other banking organization

2. To coordinate the operations of the bank with agricultural credit and its relations with state cooperative bank and other banking organizations engaged in the business of agricultural credit

Banks contributions to the development of cooperative movement

Princely states Credit limit General policy of RBI In 1942 RBI started providing finance In 1944 RBI provided financial assistance

1. RBI convened a conference of official and non official people connected with cooperative movement in 1951. this conference considered various problems related to this movement. Following recommendations were made-

a) Important and positive roleb) Procedure for providing assistancec) New framework for providing assistance

RBI took certain steps to light of this recommendation. The steps are:

a) Procedure for providing financial assistance was liberalized

b) Loans for seasonal operationc) Assistance for agriculture as well as marketing

2. Standing advisory committee3. RBI redesigned its agricultural credit department4. Rural credit channelization5. The role of RBI further increased after the

publication of all India rural credit survey in 1954

The integrated scheme for rural development was great landmark in the development of cooperative movement in India

6. National Agricultural Credit Fund7. RBI performed financial and promotional

functions8. RBI established Agricultural Credit Board9. In 1982 NABARD Established