Co-operative movement in India and M.P

The cooperative movement in India has its origin in agriculture and allied sectors. The first Cooperative Credit Societies Act was enacted in 1904.Subsequently a more comprehensive legislation called the Cooperative Societies Act was enacted. This Act provided for the creation of the post of registrar of cooperative societies and registration of cooperative societies for various purposes and audit. Under the Montague- Chelmsford Reforms of 1919 cooperation became a provincial subject and provinces were authorized to make their own cooperative laws. Under the Government of India Act 1935 cooperatives were treated as a provincial subject. The ‘Cooperative Societies’ is a state subject under entry No 32 of the State List of the Constitution of India.

In order to cover cooperative societies with membership from more than one province, the Government of India enacted the Multi-Unit Cooperative Societies Act 1942.This Act dealt with incorporation and winding up of cooperative societies having jurisdiction in more than one province. A need was felt for a comprehensive Central legislation to consolidate laws governing cooperative societies. This led to the enactment of Multi-State Cooperative Societies Act 1984 by the Parliament under Entry No 44 of the Union List of the Constitution of India.

After Independence, cooperatives assumed a great significance in POVERTY removal and faster socio-economic Growth. They became an integral part of the Five Year Plans. As a result they emerged as a distinct segment in Indian economy. In the First Year Plan it was specifically stated that the success of the Plan would be judged among other things, by the extent it was implemented through cooperative organizations.

In 1958 the National Development Council (NDC) had recommended a national policy on cooperatives. The cooperative sector has been playing a distinct and significant role in the country’s process of socio-Economic Development. There has been a substantial growth of this sector in diverse areas of the economy during the past few decades. The number of all types of cooperatives increased from 1.81 lakh in 1950-51 to 4.53 lakh in 1996-97.The total membership of cooperative societies increased from 1.55 crore to 20.45 crore in the same period. The cooperatives have been operating in various areas of the economy such as credit, production, processing, Marketing, input distribution, housing, dairying and textiles. In some of the areas of their activities like dairying, urban Banking and housing, sugar and handlooms, the cooperatives have achieved success to an extent but there are larger areas where they have not been so successful.

The failure of cooperatives can be attributed to dormant membership and lack of active participation of members in the management of cooperatives. Mounting over dues in cooperative credit institutions, lack of mobilization of internal Resources and over dependence on government assistance, lack of professional management, bureaucratic control and interference in the management, political interference and over-politicization have proved harmful to their growth. These are the areas which need to be attended to by evolving suitable legislative and policy support.

For the success of any developmental effort in the agricultural sector is to synergize with the efforts in the cooperative sector. Development of cooperative sector has many benefits. It will involve all sections of the Society in development efforts. Cooperative sector of Indian economy has a spiritual content too when it was led by Vinoba Bhave.Cooperative sector has inbuilt Democracy and only those who can demonstrate their commitment and efficiency can survive in the cooperative Elections. Nowadays most of the financial institutions in the cooperative sector are also run on purely commercial basis. It is here that the State intervention can make the difference. The grant, subsidies and aid meant for the poor farmers must be channeled through the cooperative sector. Once there are enough resources in the sector in terms of Money there will be increased participation by the people and will result in the all round development of the village.

Panchayat Raj institutions and cooperative sector can bring about positive change in the rural areas. Cooperatives have extended across the entire country and there are currently estimated 230 million members nationwide. The cooperative credit system has the largest Network in the world and cooperatives have advanced more credit in the Indian agricultural sector than Commercial Banks. In fertilizer production and distribution the Indian Fertilizer Cooperative commands over 35% of the market. In the production of sugar the cooperative share of the market is over 58% and in Cotton they have share of 60%.The cooperative sector accounts for 55% of the looms in the hand-weaving sector.

Cooperative process, market and distribute 50% of the edible oil. Dairy cooperative operating under the Leadership of the National Dairy Development Board and through 15 state cooperative milk marketing federations as now become the largest producer of milk. With the rapid growth of the cooperative sector a supportive Climate has been created for the development of cooperatives with the opportunities for diversification.

With the efforts of National Cooperative Union of India the Central Government passed the Multi State Cooperatives Societies Act and also formulated a national cooperative policy that provides greater autonomy to cooperatives. With the passage of the Insurance Act, cooperatives have been allowed to enter into the insurance business. Insurance is a field where the immense potential of cooperatives still remains untapped. In the new economic Environment cooperatives at all levels are making efforts to reorient their functions according to the market demands.

Cooperatives are also considered to have immense potential to deliver goods and Services in areas where both the state and the private sector have failed.

Emerging Issues and Challenges

Co-operatives have made substantial contribution to the country, particularly to the rural and poor people. In the prevailing liberalised economic environment with emphasis on Globalization/”>Globalization-3/”>Globalization and Liberalization-2/”>Liberalization, it is being recognised that success of co-operative movement is dependent on the Attitude, mind set and dedication of co-operative leaders, members and staff engaged in them. Under this framework of globalised environment prevailing now, the socio-economic conditions under which co-operatives are operating have changed significantly. This change in environment is reflected by new technology parameters, cut-throat competition and high expectations of staff fi-o better services etc., while the private sector concentrates on the maximization of profits; the co-operative sector lays emphasis on maximization of welfare of the members.

A borderless system of economic activity is coming into being. Big multinational companies will take full advantage of the borderless world, without hindrance of national boundaries to undertake large-scale economic activities, which will dominate the world market, such a new economic scenario, has presented a threat to co-operative movement’s ability to survive.

Since the Government now has withdrawn support, due to changed economic priorities, many co-operatives encounter difficulties in generating their own resources and have to completely reorganise themselves to survive and succeed in a competitive environment, without depending on any state support. One cannot question the ability of the co-operatives to survive and succeed, but what needs to be deliberated upon is the new direction towards which co-operative movement should move with firm determination.

The co-operative movement in India is a vast and complex system that has played a significant role in the country’s development. The movement began in the late 19th century with the establishment of the first co-operative bank in India. Since then, the movement has grown to include a wide range of co-operative societies, covering a variety of sectors, including agriculture, banking, credit, housing, and Education.

The co-operative movement in Madhya Pradesh is one of the most active in India. The state has a long history of co-operative activity, dating back to the early 20th century. Today, there are over 100,000 co-operative societies in Madhya Pradesh, covering a wide range of sectors.

The co-operative movement in India has been successful in a number of areas. Co-operative societies have helped to improve the lives of millions of people by providing them with access to credit, affordable housing, and quality education. Co-operatives have also played a role in the development of rural areas and in the promotion of Sustainable Agriculture.

However, the co-operative movement in India also faces a number of challenges. One of the biggest challenges is the lack of awareness about co-operatives. Many people in India are not aware of the benefits of co-operatives and the role they can play in their lives. Another challenge is the lack of government support for co-operatives. The government has not always been supportive of the co-operative movement and has often been seen as a hindrance to its growth.

Despite these challenges, the co-operative movement in India has the potential to play an even greater role in the country’s development in the future. Co-operatives can help to address some of the most pressing issues facing India, such as poverty, Unemployment, and rural development. With the right support from the government and the people, the co-operative movement can make a real difference in the lives of millions of Indians.

Here are some of the benefits of co-operative societies:

Co-operative societies provide a way for people to come together and pool their resources to achieve common goals.
Co-operative societies can provide access to credit, affordable housing, and quality education.
Co-operative societies can play a role in the development of rural areas and in the promotion of sustainable agriculture.
Co-operative societies can help to improve the lives of millions of people by providing them with a voice and a stake in the economy.

Here are some of the challenges faced by co-operative societies:

Lack of awareness about co-operatives.
Lack of government support for co-operatives.
Corruption within co-operative societies.
Lack of Transparency and Accountability in co-operative societies.
Inefficient management of co-operative societies.

The government can play a number of roles in supporting the co-operative movement, including:

Providing financial assistance to co-operative societies.
Providing training and education to co-operative members.
Providing technical assistance to co-operative societies.
Promoting the co-operative movement through public awareness campaigns.
Regulating the co-operative sector.

The future of the co-operative movement in India is bright. With the right support from the government and the people, the co-operative movement can make a real difference in the lives of millions of Indians.

What is a cooperative?

A cooperative 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.

What are the different types of cooperatives?

There are many different types of cooperatives, but some of the most common include:

Consumer cooperatives: These cooperatives are owned and operated by consumers who purchase goods or services from the cooperative.
Producer cooperatives: These cooperatives are owned and operated by producers who sell their goods or services to the cooperative.
Worker cooperatives: These cooperatives are owned and operated by workers who provide labor to the cooperative.
Housing cooperatives: These cooperatives are owned and operated by residents who live in the cooperative’s housing units.
Credit unions: These cooperatives are owned and operated by members who save money and borrow money from the credit union.

What are the benefits of cooperatives?

Cooperatives offer a number of benefits to their members, including:

Lower prices: Cooperatives can often offer lower prices on goods and services than traditional businesses because they are not driven by the need to make a profit.
Better quality: Cooperatives often have higher standards for quality than traditional businesses because they are owned and operated by the people who use their products or services.
More choice: Cooperatives offer a wider range of choices than traditional businesses because they are not limited by the need to make a profit.
More control: Cooperative members have more control over the products or services they receive than customers of traditional businesses.
More democracy: Cooperatives are democratically controlled by their members, which gives members a greater say in how the cooperative is run.

What are the challenges of cooperatives?

Cooperatives face a number of challenges, including:

Lack of capital: Cooperatives can be difficult to finance because they are not driven by the need to make a profit.
Lack of experience: Cooperatives can be difficult to manage because they are owned and operated by people who may not have experience in business.
Lack of competition: Cooperatives can be difficult to compete with traditional businesses because they are not driven by the need to make a profit.

What is the future of cooperatives?

The future of cooperatives is uncertain. Some experts believe that cooperatives will continue to grow in popularity, while others believe that they will face increasing challenges from traditional businesses. Only time will tell what the future holds for cooperatives.

Sure, here are some MCQs on the following topics:

The first cooperative society in India was established in the year:
(a) 1860
(b) 1882
(c) 1904
(d) 1912
The cooperative movement in India is based on the principles of:
(a) self-help, mutual help, and cooperation
(b) democracy, Equality, and Fraternity
(c) Secularism-2/”>Secularism, Socialism, and Communism
(d) unity, faith, and discipline
The main objective of the cooperative movement in India is to:
(a) provide economic and social benefits to its members
(b) promote self-reliance and development of rural areas
(c) reduce poverty and inequality
(d) all of the above
The cooperative movement in India is regulated by the:
(a) Ministry of Agriculture and Farmers Welfare
(b) Ministry of Rural Development
(c) Ministry of Cooperation
(d) Ministry of Food and Consumer Affairs
The apex body of the cooperative movement in India is the:
(a) National Cooperative Union of India
(b) National Cooperative Development Corporation
(c) National Bank for Agriculture and Rural Development
(d) All India Cooperative Union
The main sources of finance for the cooperative movement in India are:
(a) member contributions, government grants, and loans from banks
(b) member contributions, government loans, and sale of products
(c) member contributions, sale of products, and loans from banks
(d) government grants, loans from banks, and sale of products
The main challenges faced by the cooperative movement in India are:
(a) lack of awareness, poor management, and lack of government support
(b) lack of capital, poor management, and lack of competition
(c) lack of competition, poor management, and lack of government support
(d) lack of awareness, poor management, and lack of competition
The future of the cooperative movement in India is:
(a) bright, as it has the potential to address the challenges faced by the rural sector
(b) bleak, as it is facing a number of challenges
(c) uncertain, as it depends on a number of factors
(d) none of the above
The cooperative movement in Madhya Pradesh is one of the largest in the country. It has a membership of over 10 million people and is involved in a variety of activities, including agriculture, dairy, credit, and marketing.
The cooperative movement in Madhya Pradesh has been successful in a number of areas, including:
(a) increasing agricultural productivity
(b) improving the lives of rural people
(c) promoting self-reliance and development of rural areas
(d) all of the above
The cooperative movement in Madhya Pradesh has faced a number of challenges, including:
(a) lack of awareness, poor management, and lack of government support
(b) lack of capital, poor management, and lack of competition
(c) lack of competition, poor management, and lack of government support
(d) lack of awareness, poor management, and lack of competition
The future of the cooperative movement in Madhya Pradesh is:
(a) bright, as it has the potential to address the challenges faced by the rural sector
(b) bleak, as it is facing a number of challenges
(c) uncertain, as it depends on a number of factors
(d) none of the above