Beruflich Dokumente
Kultur Dokumente
CO-OPERATIVE SECTOR IN
INDIA
2.1 INTRODUCTION
2.2 MEANING AND IMPORTANCE OF CO-OPERATION
2.3 GENESIS OF CO-OPERATIVES
2.4 GROWTH OF CO-OPERATIVE MOVEMENT IN INDIA
2.4.1 PRE-INDEPENDENCE ERA.
2.4.2 THE CO-OPERATIVE CREDIT SOCIETY ACT. 1904
2.4.3 CO-OPERATIVE SOCIETIES ACT,1912
2.4.4 GOVERNMENT OF INDIA ACT, 1919
2.5 POST-INDEPENDENCE ERA
2.6 CO-OPERATION DURING THE PLANNING ERA
2.6.1 FIRST FIVE YEAR PLAN (1951-56)
2.6.2 .SECOND FIVE YEAR PLAN (1956-61)
2.6.3 THIRD FIVE YEAR PLAN (1961-66)
2.6.4 FOURTH FIVE YEAR PLAN(1966-74)
2.6.5 FIFTH FIVE YEAR PLAN (1974-78)
2.6.6 SIXTH FIVE YEAR PLAN (1980-85)
2.6.7 SEVENTH FIVE YEAR PLAN (1985- 90)
2.6.8 EIGTH FIVE YEAR PLAN (1992-97)
2.7 PROGRESS OF CO-OPERATIVES
CONCLUSION
APPENDIX I
APPENDIX 11
APPENDIX III
2.1 INTRODUCTION
1. Sami Uddin, and Mahfoozar Rahman. (1983). Co-operative Sector in India. New
Delhi: S. Chand and Company Ltd. Pp. 8 - 9.
22
latent talents and potentialities, there can no better way of activating them and
recreating the entire rural economy but through combined actions and collective
efforts which is possible only through the Co-operatives.
It is only when the benefits accrued are shared by all, that wc can expect the
total involvement of the people and mass participation in the process of
developmental activities. This is precisely what the Co-operatives have achieved.
23
appropriate for Co-operative endeavour. These are the areas in which neither the
system of private enterprise nor the state ownership can match the advantages of
Co-operative organisations.
The genesis of the modern Co-operatives can be traced back to the first half
of the 18 century. Those were the days of scarcity and shortages in whole of
Europe. The capitalist structure created by the Industrial Revolution was also
responsible for creating many social and economic evils in the society.5
3. ibid.
4. Margaret, Digby.(1981). An assessment of Indian Co-operative. New Delhi : RBSA
Publications. Pp. 20-21.
5. Sinha, B.P. (1991), Glimpses of Co-operation in Indian context, New Delhi: Himalaya
Publications. Pp.5-6.
24
Co-operation is as old as human society. The great philosopher, Aristotle
has rightly said "man is a social animal". This statement will hold good as long
civilization exists in this world. It is truly the basis of domestic and social life. He
needs company to live and work, help and support in time of stress and strain.
Unconsciously this principle has always penetrated the life of human race. The
history of modern civilization is, in fact, the history of Co-operation. Without it
social and economic progress would have been impossible. Therefore, there is a
great need for understanding Co-operation that can be considered as the basic
principle underlying human life.6
6. Jalal, R.S. (19 96). Rural Co-operation in India. New Delhi: Anmol Publicaions.
P.l.
7. Sah, A.K. (1986). "An Approach to the Theory of Motivation in Co-operatives".
New Delhi: Indian Co-operative Review. Jan.Vol. XX, No.3. P-217.
8.Jalal,R.S.Op.Cit,Pp.4-6
25
Co-operation is one of the economic miracles of the last century. Today no
country in this world is completely self-reliant. Both developed or developing arc
economically interdependent. Each one of these countries needs the Co-operation
of the other countries, need the help of developed countries to initiate and intensify
their process of industrialisation. Besides, the developed countries also need the
support of underdeveloped countries. Even today in many respects these
developed countries are dependent on the underdeveloped countries.9
26
2.4 GROWTH OF CO-OPERATIVE MOVEMENT IN INDIA
Co-operation is not in any way new to India. It has a fairly long history in
India. The Co-operative form of social and economic activities has been in
existence since times immemorial. The oldest scriptural works like the vedas, the
upanishads, the Bhagawat Purana, Kautilya's Artha Shastra etc., referred about
joint actions of the people.
There were four main traditional forms of Co-operation in ancient India, viz
Kula, Grama, Shreni and Jati. According to G.P. Srivastava,12 the Kula was the
first form of Co-operative activity that emerged in Indian society. It was both a
political and socio-economic organisation in which kinsmen, friends and relatives
worked Co-operatively to promote their social, economic and political interest.
With the expansion and stabilisation of society, the aspects of economic and social
Co-operation gradually narrowed to the limits of joint family which has survived
even today.
11. Bedi, R.D. (1992). Theory-History and Practice of Co-operationk. Agra : Vikas
Publishing House. P.7.
12. Rayudu; C.S. (1991). Kurd Credit xn India. New Delhi: Mittal Publications. Pp.58-
59.
27
pooled their resources of livestock and implements and helped one another in
tilling their respective fields. The members jointly undertook buying or selling or
obtaining equipments, tools, seeds and other items of production.
The shreni is a later development which emerged in the post vedic era. It
was a Co-operative and economic organisation of artisans, industrial handcraft
workers, merchants, traders, bankers, agriculturalists, house-builders and building
contractors.
Towards the end of the 19th Century, the condition of the rural masses in
India was quite deplorable. The countryside was studded with problems of
poverty, ignorance, improvidence, and ancestral debt and occasional outbreaks of
natural calamities. The outcome of all these factors was rural indebtedness. The
rural poor was being exploited by money-lenders by way of charging usurious
rates of interest. This led to murderous uprisings of the debtors against creditors;14
It also resulted in riots and rebellions. With a view to mitigate the sufferings of the
peasants provincial Governments enacted several measures of relief, such as,
13. Srivasthav, G.P. (1983). Traditional Forms of Co-operation in India, New Delhi: C.B.
Mamoria Publications. Pp. 1-5.
14. Kulkarni, C.R. (1985). Theory and Practice of Co-operation in India. Bombay : Co-
operative Book Depot. P.5.
28
Deccan Agricultural Relief Act (1879);
Land Improvements Loans Act (1883); and
Agriculturist's Loans Act (1884).
These measures, however, did not prove much success due to stringent and
cumbersome official procedures.
29
2.4.2 THE CO-OPERATIVE CREDIT SOCIETY ACT, 1904
The passage of this Act, was the first milestone in the Co-operative
movement in India. This laudable measure was hailed as "a turning point in
economic and social history."16 It aimed at encouraging thrift habits among poor
artisans and peasants by setting up Co-operative societies. There was, however, no
provision for the establishment of non-credit societies or central agencies, such as,
central Co-operative banks /federations. In course of time, the 1904 Act was found
insufficient to meet the growing needs of the farmers.17
16. Henry, W. Wolff. (1927). Co-operation in India. New Delhi : RBSA Publications.
P.129.
17. Calvert, H. (1933). The Law and Principles of Co-operation Calcutta : Thacker and
Spint & Company. Pp.51-52.
18. Reserve Bank of India, (1957). Report of the Committee and Co-operation, Bombay.
30
banks and federations of societies as apex banks/unions at the provincial level for
purpose of supervision. Though all the recommendations of the committee were
not implemented, the report of this committee remained as the "Bible of Co-
operation in India" for sufficiently long time.
The movement entered its next phase with the passing of the Government
of India Act,1919 (Popularly known as the Montagu-chelmsford Act, 1919). Under
this Act, the Co-operation became a provincial subject. Under this Act, the
provincial Government could enact separate Acts to suit the provincial
requirements. The Bombay province was the first to enact a separate Co-operative
societies Act,1925. This was followed by Madras Act, 1932, Bihar and Orissa Act,
1935; Coorg Act, 1936; and Bengal Act of 1940 while the rest of provinces
adopted the existing Act of 1912.20 The Act of 1919 gave great stimulus to the
movement. Its success was measured more by its quantity than by its quality.
19. Punia, K.R. (1989). Administration of Credit Co-operatives. New Delhi : Deep & Deep
Publications. Pp.23-24.
20. Mamoria, C.B. (1983). Rural Credit and Agriculture Co-operation in India. New Delhi:
Deep & Deep Publications.Part-I. P.30.
21. Government of India, (1928). Report of the Royal Commission on Indian Agriadtwv.
New Delhi: Department of Agriculture and Co-operation. P.450.
31
In 1929, occurred the world wide economic depression and India was no
exception to it. The Great Depression gave a tremendous setback to Co-operative
movement. It was during this period that on the recommendations of the Central
Banking Enquiry committee (1931), The Reserve Bank of India was set-up in
1935. The bank was entrusted with the task of conducting research in the
development of the Co-operatives.
The next phase of development started with the outbreak of the Second
World War in 1939. The Movement got a fillip during the Second World War as a
result of the rise in the prices of agricultural commodities and the increased
incomes of the farmers. Overdues of societies began to be cleared up, and the area
of their Co-operation widened. Non-credit Co-operative societies such as,
consumers Co-operative societies and Co-operative marketing societies, were set-
"P.22
The Gadgil committee expressed the view that "the Co-operation would
provide the best and the most lasting solution for the problems of agricultural
credit in particular and those of the rural economy in general."24
22. Sinha, B.P. (1991). Glimpses of Co-operation in the Indian Context. New Delhi :
Himalaya Publications. Pp.14-15.
23. Memoria, C.B. Op.Cit., Pp.30-31.
24. Government of India, (1945). Report of Agriculture and Finance Sub-Canrnttee. New
Delhi: Department of Agriculture and Co-operation. P.47.
32
It pointed out that the existing Co-operative organisations could not handle
the entire problem single-handedly and that state's assistance was necessary. It,
therefore, suggested setting up of an Agricultural Credit Corporation as an
autonomous body at the provincial level. The Saraiya Committee, however, did
not agree with this basic recommendation of the Gadgil committee. It suggested
that
(i) rural activities should be diversified by granting liberal loans to
agriculturists,
(ii) close link between credit and marketing should be established, and
(iii) 25 % of the total marketable surplus of agricultural produce of the
country should be brought within the purview of Co-operatives.25
The partition of the country in 1947 gave a big shock to the movement. The
number of societies and their membership fell down considerably.
33
In the post-independence era, Co-operation has been assigned a notable
role in bringing socio-economic changes through the process of democratic
planning with accent on assisting the weaker Sections in the rural sector.26
Supporting this viewpoint R.B. Tyagi observed : "In fact, Co-operation has begun
to be felt as the only panacea for all our maladies, both social and economic and
specially of the rural sector.
34
Fourthly, there was a lopsided development of the movement. For quite
long, emphasis had been exclusively laid on credit, leaving out other important
activities having a bearing on the lives of the people.
29. 50 Years of Co-operation (1905-1954) Golden Jublee Souvenir. Bombay : Provincial Co-
operative Institute. 1965. P.5
30. Government of India,(1951-56) First Frue Year Plan Document New Delhi: Planning
commission. P. 163.
35
The progress of Co-operative movement during the First Plan is given in
Table 2.1
TABLE 2.1
PROGRESS OF THE CO-OPERATIVE MOVEMENT DURING THE FIRST
FIVE YEAR PLAN
Source: Government of India, (1951-56), First Five Year plan Document, New
Delhi : Planning Commission, Pp. 163-171.
From these figures it is clear that the average increase in membership per
year was about 5 lakhs against the average increase of only 1 lakh members per
year during the earlier history of the movement. A substantial increase was made
in the credit made available to members , which rose five times during the First \
Five Year Plan.
The Second Plan was based on the recommendations of the All India Rural
Credit Survey Committee. The Reserve Bank of India (RBI) Act was amended
with a view to improving the facilities of rural credit. In the amendment, provision
36
was made for creation of special funds, as recommended by the committee. The
National Co-operative Development and Warehousing Board was established and
side by side, state warehousing corporations were set-up in all the states. The
Imperial Bank of India was converted into the State Bank of India (SBI) in 1955
and it opened a number of branches. In the Second Five Year Plan special
attention was paid to the marketing and processing Co-operatives and credit Co-
operatives.
Co-operation was assigned an important role in the Second Five Year Plan
as an effective instrument of fulfilling the objectives, viz, a sizable increase in
national income, rapid industrialisation, expansion of employment opportunities,
reduction of inequalities in income and distribution of economic power. The plan
stated that the building up of Co-operative sector as part of the scheme of planned
development is one of central aims of national policy. '
Sir Malcoln was invited by the planning commission for evaluation of the
Co-operative movement in the country. The committee (1957) recommended for
an effective structure at the higher levels. During this plan, another committee on
Co-operative credit was set-up under the Chairmanship of V.L. Mehta, which
submitted its report in I960.32
31. Government of India, (1956-61). Second Five Year Plan Document, New Delhi :
Planning Commission. P.221.
32. Prakasham Institute of Development Studies. (1988). "Issue in Go-operative Movement
in AndraPradesh", Hyderabad : P.135.
37
POLICY RESOLUTION, OF 1958
TABLE 2.2
PROGRESS OF THE CO-OPERATIVE MOVEMENT DURING THE SECOND
FIVE YEAR PLAN
PARTICULARS 1953-56 1960-61
No. of Societies 2,40,000 3,32,000
Membership of Primary Societies (Lakhs) 176 342
Percentage of Rural Population covered 12 24
Loans Advanced by Primary Societies (Rs. In Crores) 50 203
Average working capital per society (Rs.) 4,945 12,913
Average deposits per society (Rs) 441 668
33. Government of India, (1956-61). Second Five Year Plan Document. New Delhi :
Planning Commission. P.221.
38
During this period total number of all types of societies increased from 2.40
lakhs to 3.32 lakhs. During this plan, 18,000 primary marketing societies were set-
up; the number of Co-operative sugar factories increased from 3 to 30; 390
processing units were established and an intensive programme for Co-operative
training was implemented. During this plan, a number of committee and working
groups reported on the working of various aspects of Co-operative movement. The
committee on Co-operative credit under chairmanship of Sri. V.L. Mehta made
very valuable recommendation for the development of credit movement. The
study team of Co-operative training made suggestions for development of Co-
operative training and education. The committee on consumer Co-operatives made
various approaches-towards the development of consumer Co-operation.
During the third plan period also Co-operative movement was accorded a
crucial role in implementing the schemes of economic development. The plan
provided Rs. 80 crores for the development of Co-operation as against Rs. 34
Crores in Second Five Year Plan. By the end of the plan period, the primary
agricultural credit societies covered about 89 percent of villages.34 The total
number of societies stood at 1,91,904. In this plan ample emphasis was laid on
making the societies more viable than on their expansion. Inspite of thejr
revitalisation programme, majority of agricultural credit societies were weak. In
this plan about 31 percent of the societies worked at loss. In the field of Co-
operative processing 582 units were established. Besides, there were 78 Co-
operative sugar factories, 155 cotton processing societies 329 paddy husking
societies, 142 rice mills , 298 oil
39
crushing societies, 22 fruits and vegetable societies. The Co-operative stores
increased from 7,058 in 1960-61 13,077 in 1965-66.35
In the Third Plan, apart from credit and marketing Co-operatives, attention
was paid to the formation of consumer and industrial Co-operatives. The progress
of the Co-operative movement during the plan period is shown in Table 2.3.
TABLE 2.3
PROGRESS OF THE CO-OPERATIVE MOVEMENT DURING THE THIRD
FIVE YEAR PLAN
PARTICULARS 1960-61 1961-66
No. of Societies (in Lakhs) 3.32 1.92
Membership of Agricultural Credit Societies (Million) - 26.10
Percentage of Rural Population Covered 24 33
Loans Advanced (Rs.in Crores) 203.00 504.91
Agricultural Produce marketed by Co-operatives (Rs.in Crores) 175 360
Distribution of consumer articles by Co-operatives (Rs.in Crores) 56.70 398.10
35. Government of India, (1961). Third Five Year Plan Document, New Delhi: Planning
Commission. P.208.
40
In order to facilitate the implementation of the programme set-out in Third
Plan, the Government of India constituted a number of committees and working
groups to examine carefully the various aspects of the Co-operative movement and
to suggest ways and means to strengthen the same. 6 A few of them were;
41
During this plan period statewise number of societies for one lakh of
population is given in Table 2.4.
TABLE 2.4
NUMBER OF SOCIETIES PER ONE LAKH OF POPULATION DURING
THIRD FIVE YEAR PLAN
NO. OF PER LAKH POPULATION
OT* A TTT'O
SiATES SOClEllEa
AS ON 30-6-1957 ON 30-6-1960 ON 30-6-1962.
42
2.6.4 FOURTH FIVE YEAR PLAN (1966-74)
In the Fourth Five Year Plan, emphasis was laid on "growth with stability"
in all the years. In this plan more emphasis was laid on agricultural Co-operatives
with a view to institutionalise the various services needed by the farmers. Some of
the major lines of reforms aimed at by the plan were introduction of crop loan
system, linking of credit with marketing as part of the intensified programme for
the development of Co-operative marketing and processing, and reduction of
overdues and strengthening the resources of Co-operative banks and societies.
37. Government of India, (1966-71). Fourth Five Year Plan Document. New Delhi :
Planning Commission. P-216.
38. ibid. Pp.215- 220.
39. Punia.K.R, Op.Cit., Pp.59-60.
43
iv) The formulation of a more active and much bigger role for the
Agricultural Refinance Corporation and adoption of various
measures for ensuring the timely and adequate flow of credit to
agriculture through Co-operatives and commercial banks.40 Almost
all the recommendations of the committee were accepted and
implemented by the Government during Fourth Five Year Plan
period, and a considerable progress is marked in all spheres of Co-
operative movement during this plan period. The outlays on Co-
operative development programmes are given in the Table 2.5
TABLE 2.5
THE OUT-LAYS ON CO-OPERATIVE DEVELOPMENT PROGRAMMES
PARTICULARS OUTLAY
(Rs.inCrores)
States 119.21
Union Territories 4.61
Centrally Sponsored 24.50
Central Sector 30.25
Total 178.57
•
"Growth with stability" was the key note of the Co-operative movement
during the Fourth Plan Period. Agricultural Co-operatives and consumer Co-
l
operatives occupied a central position in the Co-operative movement. The
progress of the Co- operative movement during the fourth plan is in Table 2.6.
40. Mathur, B.S. (1982). Co-operation in India, Agra : Sahitya Bhavan
Publications. P. 102
41. ibid.
44
TABLE 2.6
PROGRESS OF THE CO-OPERATIVE MOVEMENT DURING THE FOURTH
FIVE YEAR PLAN
PARTICULARS UPTO
1965-66 1969-70
Membership of Primary Credit Co-operative
Societies (in Million) 26.10 30.00
Coverage of Agricultural Families 42% 45%
Loans advanced (Rs. in Crores) 504.91 550.00
Firtilizers sold by Cooperatives (Rs. in Crores) 80.10 260.00
Distribution of consumer articles by Co-operatives
(Rs. in Crores) 398.10 550.00
42. Government of India, (1974-78). Fiftlj Five Year Plan Document. New Delhi :
Planning Commission. P.78.
45
Reserve Bank of India (RBI). It submitted its Reports in 1975. The committee
recommended a single apex credit institution to plan and execute lending
programmes in co-ordinated and better manner.
The key-note of the Co-operative movement during the Fifth Five Year
Plan was "growth with social justice". Hence, more attention was given to
consolidate and strengthen the Co-operatives to make them viable democratic
economic institutions. During this plan period it was aimed to ensure stable
43. Reserve Bank of India, (RBI) Report of Committee to Review Arrangement for
Institutional Credit for Agricultural. Bombay: Ppl-2.
46
necessities of human life through building a strong consumer Co-operative and
fair price shops for the movement. Special attention was paid for economic
upliftment of the small and marginal farmers and the weaker Sections through Co-
operation. Table 2.7 provides data about the targets and achievements during the
plan period.
TABLE 2.7
TARGETS AND ACHIEVEMENTS DURING THE FIFTH FIVE YEAR PLAN/
ACTIVITY TARGET ACHIEVE
FOR 1978-79 -MENTS
1. Disbursement of Short-term Credit 1,200 1,262
2. Disbursement of Medium-term Credit 350 753
3. Investment of Long-term Credit 1,130 1,095
4. Agricultural Produce Marketed 1,000 1,134
5. Fertiliser Distribution 1,000 900
6.Distribution of Seeds/pesticides and Agricultural
Machinery 200 115
7. Co-operative Processing Units 1,900 1,900
8. Storage Capacity at the end of the plan (lakh tonnes) 50 45
9. Distribution of Consumer g^oods 1,200 1,250
47
operatives. During this period for development of professional management in
Co-operative institutions, managerial cadres were established. The state level
marketing federations were also strcngthcned.Table 2.8 presents the picture of
target and achievements of plan.
TABLE 2.8
TARGETS AND ACHIEVEMENTS DURING THE SIXTH FIVE YEAR
PLAN^
ACTIVITY TARGET FOR ACHIVEMENTS
1984-85 1984-85
1. Disbursement of Short-term Loan 2,500 2,500
2. Disbursement of Midium-term Loan 240 250
3. Disbursement of Long-term Loan 555 500
4. Fertilisers distribution 1,600 1,500
5. Value of Consumer goods sold 3,600 2,900
? 2,500 2,700
6. Value of Agricultural products Sold
7. Processing units No. a)£u gar factories 185 185
b)Oil mills 390 NA
c) Spinning mills 90 90
d) Others 1,694 NA
8. Godown Capacity (Lakh tonnes) 82 80
Sources: ibid.
In this plan, the Co-operative movement since 1951 was reviewed and in
the light of the problems and constraints of the movement, suggested the Four
Point Programme,
i) Strengthening of Primary village societies;
ii) Direct Co-operatives to ameliorate the economic conditions of the rural
poor;
48
iii) Re-orientation and consolidation of the role of Co-operative federal
organisations;
iv) Development of professional man-power and appropriate professional
cadres to managerial position;
The Seventh Five Year Plan aimed at developing the primary agricultural
credit societies as multipurpose viable units, promoting professional management
and strengthening of effective training for improving operational efficiency.45
During this plan period, The Reserve Bank of India (RBI) Appointed Agricultural
Credit Review Committee (ACRC) in august 1986 under the Chairmanship of
Kushro. The Agricultural and Rural Development Committee (ARDC) was a
major committee after All India Rural Credit Survey Committee(AIRCSC) which
reviewed the Agricultural Credit Movement in the country.
44. Government of India, (1980-85). Sixth Five Year Plan Document. New Delhi :
Planning Commission. P. 117.
45. National Co-operative Union of India, (1922). 12th Indian Co-operative Congress, New
Delhi: December. P.4.
49
The ARDC made the recommendations regarding role and effectiveness of
lending institutions role and functions of the Apex Level Institutions (ALI) in
Agricultural credit, lending cost and margins and organisational and
management aspects and organisation and management of National Bank for
Agricultural and Rural Development (NABARD).
Similarly, in order to look into the system, viability and implication of Co-
operatives, a committee was constituted under the chairmanship gf Sri S.R.
Shankaran.46 The major recommendations of the committee were as follows
50
This plan period aimed at implementation of special programmes for
underdeveloped states and to serve the weaker sections through the Co-operatives.
The plan also aimed to reach the targets set.
The Eigth Five year plan aimed at building up the Co-operative movement
as a self managed, self regarding and self reliant institutional set-up so that it may
play a significant role in improving productivity and creating additional
employment opportunities in rural areas. The plan assured larger flow of credit to
the Co-operative sector.
48. Hallikere, R.K. "75 Years of Indian Co-operative Movement". The Maharastra Co-
operative Union. Quarterly Journal, Vol. LXII. 1 July, 1980.
49. Government of India, (1985-90). Seventh Five Year Plan Document New Delhi :
Planning Commissions. P. 120.
51
i) Providing more autonomy to Co-operative and building up the Co-
operative movement as a self managed self-regulated and self-reliant
institutional set-up.
ii) Improving the productivity of economy and creating employment
opportunities by enhancing the capabilities of Co-operatives.
iii) Strengthening Co-operative credit and organisation structure in accordance
with model laws and to make it competitive and viable.
iv) Extending adequate credit support to the programmes of national priority
and poverty alleviation.
v) Appropriate linking of consumer Co-operatives with public distribution
system for the benefit and protection of consumers.
vi) Development and training of Co-operative functionaries in professional
management and introduction of suitable personal management policy.
vii) Review of Co-operative structure with a view to liberalise the working of
Co-operative institutions and freeing them from bureaucratic control.
52
national level to primary land development banks.
TABLE 2.9.
GROWTH OF CO-OPERATIVES DURING THE FIVE YEAR PLANS
BEGINNING OF PLAN
PARTICULARS
Source: Indian Agriculture in Brief, (1986). and Eight Five Year Plan Document.
Bombay : NABARD Publication. P.345
50. Government of India, (1992-97). Eight Five Year Plan Document New Delhi :
Planning Commission. P. 140.
51. Government of India, (1981-82). Annual Report New Delhi : Depanment of
Agriculture and Co-operation. P. 130.
53
It may be seen from Table 2.9 that Co-operatives have made commendable
progress during the Five Year Plans in terms of their membership, share capital
and working capital. Quantitative expansion measured by the number of societies
has been stopped by the Reserve Bank of India since the third plan. It has been the
accepted policy of the Reserve Bank since then not to allow the growth of non-
• viable and weak societies. Instead, efforts have been made to merge weak societies
with financially strong societies so as to make Co-operative movement stand on its
own feet.
Conclusion:
Several national level organisations, over the years, have also come up in
aid of Co-operative movement. These organisations have been set-up at the behest
of, and with financial aid and statutory support of the central government. They
are ;
i) National Bank for Agricultural and Rural Development (NABARD)
ii) National Co-operative Union of India (NCUI)
iii) National Agricultural Co-operative Marketing Federation of India
Ltd.,(NAFED)
iv) Indian Farmer Fertilisers Co-operative limited (IFFCO)
v) Krishak Bharat Co-operative Ltd., (KRIBHCO)
vi) National Co-operative Development Corporation (NCDC)
54
These organisations have added a new dimension to the Co-operative
movement. It has been their endeavour not only to build up Co-operative
economy on a wide base, but also to provide sufficient strength to the Co-
operative sector so that it can compete with other public and private agencies and
to act as the nerve centers for the respective co-operative at state, district / regional
and local level. The observation of Sri R.C. Dwivedi, a former chief executive of
the National Co-operative Union of India is very relevant here. He observed that
" Co-operation has come to the stage of recognition as a vital and inevitable force
and instrument for socio-economic transformation and development. It's impact
has been perceptible and measurable.
55
Appendix -1
SHARE OF CO-OPERATIVES IN NATIONAL ECONOMY
PARTICULARS PERCENTAGE
Rural Network (village covered) 100%
Agricultural Credit Disbursed (NABARD) 46.3
Fertiliser ^disbursed (5.809 Million Tonnes) 31
Fertiliser Produced (5.932 Million Tonnes) 20.9
Sugar Produced (7.062 Million Tonnes) 54.9
Capacity Utilisation of Sugar Mills 90.1
Wheat Procurement 29.7
Jute Procurement (1995-96) 21
Retail Fair Price Shops (1,25,200) 28.46
Milk Procurement tO/fotal Production 6.7
Milk Procurement to Marketable Surplus 10
Oil Marketed (Branded) 51
Spindle in Co-operatives (3.27 Million) 10.5
Cotton Marketed / Procurement (1997) 72.9
Cotton Yarn/Fabrics Production 16.3
Cotton Yarn Export 8
Handloom in Co-operatives 55
Fishermen in Co-operatives (Active) 21.5
Storage Facility yillageSvel (PACS) 62
Soyabeen Production 7.5
Self-employment Generated Persons (In million) 12.5
Salt Manufactured 7.5
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Appendix - II
A
INDIAN CO-OPERATIVE MOVEMENT ATGLANCE
A.
ALL CO-OPERATIVES (1997-98)
57
Appendix - III
TYPES OF CO-OPERATIVE SOCIETIES IN INDIA UPTO 1997-98
TYPES OF SOCIETIES NO. OF MEMBERSHIP SHARE CAPITAL NO. OF VILLAGE PROFIT/LOSS
SOCIETIES (Value of Rs. in million') COVERED
1) Primary Agricultural Co-operative Societies 91,580 92.112 22,35.9 99.5 %
2) Farmers Service societies 2,570 4.708 991.1 59.0 %
3) State Co-operative Land Agricultural Rural 19 6.011288 5078.0 19.0%
Development Banks
4) Primary land Agricultural 721 7.103 5050.5
Co-operative Development Banks
5) Urban Co-operatives Banks 1495 15.901 11,988
6) Non- Agricultural Credit Co-operatives 42,308 21.127 15764.9
7) Consumer co-operatives 28,289 14.73 825.86 10.2% 42.7 %
8) State Consumer Co-operative Federation 29 41.09 872.2 25.5 %
9) Student Co-operatives 4,179 982.710 128.0
10) Marketing Co-operatives 8,422 5.304 2,947.3 40.5
11) State/ District Co-operative Marketing 397 33,84,532 3221.4
Federation
12) Agro-Processmg Co-operatives 258 37,95,127 15,910.5 55.9%
13) Sugar Co-operatives 271
14) Spinning Mills 135 4,262.3 (-)28.2 %
15) Dairy Co-operatives 85,515 1859.6
16) Other Agri-Processing Co-operatives 683
17) Woman Co-operatives 8714 897,790 204.23 37.9 %
IS) Apex Housing Co-operatives 25 30,328 3188.90
19) Housing Co-operatives 99,000 6,000 3616.17
20) Fanning Co-operatives 7,387 359,19S 77.19
21) Irrigation Co-operatives 7,394 5,51,345 258.85 29.4%
22) Electricity Co-operatives 49 8,03,314 S044 36.7%
23) Co-operative Education ^Training Centres 11,82,532
24) Industrial Co-operatives
a) Weavers 19,187 19,74,883 1,351.1 24%
b) Non-weavers 43,308 2,42,088 924.1 40.3 %
25) Co-operative for Weaker Section (Primary Level)
a) Fishery Co-operatives 12,968 2,019 317.1 37.4 %
26) Poultry Co-operatives 4,883 96.74
27) Labour Contract Co-operatives
a) Construction Co-operatives 27,711 280.0 30.3 %
b) Forest Labour Co-operatives 3,854 53.3 40%
Source: Co-operative At Glance (1997-98), National Co-operative Union of India. New Delhi
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