Coperative Society

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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.

 



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A cooperative society 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.

Cooperative societies are governed by a set of laws that vary from country to country. In general, however, cooperative societies are required to be registered with the government and to have a democratically elected board of directors.

Cooperative societies are managed by a professional management team, which is responsible for the day-to-day operations of the business. The management team is accountable to the board of directors, which is responsible for setting the overall strategy of the business.

Cooperative societies are financed through a combination of member Equity, loans, and grants. Member equity is the money that members contribute to the cooperative society when they join. Loans are obtained from banks or other financial institutions. Grants are sometimes available from government or private organizations.

Cooperative societies market their products and services to their members and to the general public. They use a variety of marketing strategies, including advertising, public relations, and direct marketing.

Cooperative societies keep track of their financial transactions in a set of accounting records. These records are used to prepare financial statements, which are used to track the financial performance of the business.

Cooperative societies are audited by an independent auditor, who is responsible for providing an opinion on the financial statements. The auditor’s report is used by members, lenders, and other stakeholders to assess the financial Health of the cooperative society.

Cooperative societies are regulated by a variety of government agencies. These agencies are responsible for ensuring that cooperative societies comply with the law and that they are operated in a fair and equitable manner.

Cooperative societies provide a variety of educational programs to their members. These programs are designed to help members understand the cooperative business model and how to use cooperative services.

Cooperative societies conduct research on a variety of topics, including cooperative management, cooperative finance, and Cooperative Marketing. This research is used to improve the performance of cooperative societies and to develop new cooperative initiatives.

Cooperative societies are involved in a variety of development activities, including economic development, social development, and environmental development. These activities are designed to improve the lives of members and the communities in which they operate.

Cooperative societies network with other cooperative societies, both domestically and internationally. This networking helps cooperative societies to share information, learn from each other, and collaborate on projects.

Cooperative societies advocate for the interests of their members and the cooperative movement. This advocacy is conducted at the local, national, and international levels.

Cooperative societies are committed to sustainability. They strive to operate in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Cooperative societies have a significant impact on the lives of their members and the communities in which they operate. They provide jobs, affordable goods and services, and opportunities for economic development. Cooperative societies also play a role in social and environmental development.

The future of cooperative societies is bright. The cooperative business model is well-suited to meet the challenges of the 21st century. Cooperative societies are becoming increasingly popular as people look for more sustainable and equitable ways to do business.

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 being a member of a cooperative?

There are many benefits to being a member of a cooperative, including:

  • Lower prices: Cooperatives often offer lower prices on goods and services than traditional businesses.
  • Better quality: Cooperatives often focus on providing high-quality goods and services to their members.
  • More control: Cooperative members have a say in how the cooperative is run.
  • Stronger communities: Cooperatives can help to build stronger communities by providing jobs and other economic benefits.

How can I start a cooperative?

If you are interested in starting a cooperative, there are a few things you need to do:

  1. Find a group of people who share your interests and goals.
  2. Develop a business plan.
  3. File the necessary paperwork with the government.
  4. Start operating your cooperative.

What are the challenges of running a cooperative?

There are a few challenges that come with running a cooperative, including:

  • Finding enough members: Cooperatives need a critical mass of members in order to be successful.
  • Managing the cooperative: Cooperatives are democratically run, which can be challenging.
  • Dealing with competition: Cooperatives often face competition from traditional businesses.

What is the future of cooperatives?

Cooperatives have a long and successful history, and they are likely to continue to be an important part of the economy in the future. Cooperatives offer many benefits to their members, and they can help to build stronger communities.

Sure, here are some MCQs without mentioning the topic of Cooperative Society:

  1. What is the name of the organization that provides financial services to individuals and businesses?
    (A) Bank
    (B) Credit union
    (C) Cooperative
    (D) Insurance company

  2. What is the name of the organization that represents the interests of workers in a particular Industry?
    (A) Union
    (B) Guild
    (C) Cartel
    (D) Trust

  3. What is the name of the organization that provides goods and services to its members at a reduced price?
    (A) Cooperative
    (B) Non-profit organization
    (C) Charity
    (D) Foundation

  4. What is the name of the organization that represents the interests of consumers?
    (A) Consumer group
    (B) Lobbyist
    (C) Activist
    (D) Advocate

  5. What is the name of the organization that provides financial assistance to people in need?
    (A) Charity
    (B) Foundation
    (C) Non-profit organization
    (D) Social service agency

  6. What is the name of the organization that provides Education and training to its members?
    (A) Trade union
    (B) Professional association
    (C) Chamber of commerce
    (D) Alumni association

  7. What is the name of the organization that provides health care to its members?
    (A) Health insurance company
    (B) HMO
    (C) PPO
    (D) Medicaid

  8. What is the name of the organization that provides retirement benefits to its members?
    (A) Pension fund
    (B) 401(k) plan
    (C) IRA
    (D) 403(b) plan

  9. What is the name of the organization that provides Unemployment benefits to its members?
    (A) State unemployment insurance agency
    (B) Federal unemployment insurance agency
    (C) Social Security Administration
    (D) Department of Labor

  10. What is the name of the organization that provides disability benefits to its members?
    (A) Social Security Administration
    (B) Department of Veterans Affairs
    (C) Department of Labor
    (D) Department of Health and Human Services