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Role of cooperative movement. Group no 2 [SYBMS]. TEAM MEMBERS. Rakshit Jagadesh Siddik Sumeet Jay. CONTENT. Definition of cooperation Principal of cooperative Origin of Concept of Cooperation Cooperative movement Cooperative development in Ancient India - PowerPoint PPT Presentation

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  • Group no 2[SYBMS]

  • Permission to start non credit supplying societiesClassification of societies as per their responsibilities / liabilitiesUtilization of profitSpecial rights to societiesConcessions to cooperative societiesRestrictions in using cooperative in namePermission to establish central societiesShare 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 societyCommittee gave report in 1915 to governmentThe committee made recommendations for systematic development of cooperative societyLimited to villageSmallerResponsibilities / liabilitiesDepositsRecovery of loansNon cooperative societiesAuditingJoint reserve fundcapital

  • Royal commission

    YearNo of societiesMembershipCapital (in 000s)1918-19309481229000-1921-225218219742703112251925-268018230586255760371927-289605130701737678771929-301041844181904895178

  • Vigorous blowPriceRoyal agriculture commission in1927 provincial banking inquiry commission in 1929 gave their recommendations for the improvement1935 establishment of RBIEstablishment of Land Mortgage Bank

  • Financial depression removedWorld warPriceConsumer / Cooperative storesIndustrial cooperative society

    Committee leaded by Dr. Dhananjayroo Gadgil was appointedIn 1945 cooperative planning committee under the president ship of Shri Saraiya was appointed

    YearNo of societies (in ooos)Membership (in lakhs)Capital (in crores)193912253.07160.47194314669.01121.14194617291.60104.00194713990.00156.00

  • After independenceDevelopment of rural banking sectorFormation of NABARD

  • CompetitionBrand buildingDistribution networkExport

  • Despite rapid growth the overall progress of cooperative movement during 100 years ofIts existence is not very impressive. It is therefore necessary to know the causes of poorPerformance of the movement and on that basis take such steps as would promote afaster growth of cooperative movement in India.Government InterferenceMismanagement and manipulationLack of AwarenessRestricted CoverageFunctional 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 functionsTo 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 organizationTo 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 movementPrincely statesCredit limitGeneral policy of RBIIn 1942 RBI started providing financeIn 1944 RBI provided financial assistance

  • 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-Important and positive roleProcedure for providing assistanceNew framework for providing assistanceRBI took certain steps to light of this recommendation. The steps are:Procedure for providing financial assistance was liberalizedLoans for seasonal operationAssistance for agriculture as well as marketing

  • Standing advisory committeeRBI redesigned its agricultural credit departmentRural credit channelizationThe role of RBI further increased after the publication of all India rural credit survey in 1954The integrated scheme for rural development was great landmark in the development of cooperative movement in IndiaNational Agricultural Credit FundRBI performed financial and promotional functionsRBI established Agricultural Credit BoardIn 1982 NABARD Established