Cooperative Movement

The modern Cooperative Movement was started in Lancashire, England, in 1844 by the Rochdale Pioneers to provide a cheap alternative to poor-quality, contaminated food and provisions, with any surplus going to the community. Since then, the cooperative movement has grown exponentially, spanning the globe and including all economic sectors.

In India, the cooperative movement is extremely important in the agricultural, banking, and housing sectors. Many cooperative organisations, especially in rural regions, boost political engagement and are used by prospective politicians as a stepping stone.

ICA Statement On The Cooperative Identity

The International Cooperative Identity Statement (ICIS) has components that define cooperative societies and cooperatives. The Cooperative Values and Principles of Cooperation have been acknowledged as a critical compass for enhancing the relevance and identity of cooperatives in the face of a globally oriented economy typified by the pressures and pulls of interdependence, competition, and free trade.

Cooperation Movement India

In 1904, the first Cooperative Credit Societies Act was enacted. In 1912, a new Cooperative Societies Act was passed to address the Act’s flaws. The movement has now made significant progress. In 1914, it created the Maclagan Committee, which recommended a number of changes to its operations, including a better auditing mechanism, a greater emphasis on member teachings, and continued movement advancement.

The Government of India established the Cooperative Planning Committee in 1945.

The Reserve Bank of India (RBI) created a commission to survey All India Rural Credit Societies in 1951. This committee’s report was submitted in 1954.

The following are some of the committee’s key suggestions and recommendations

(1) The state government should be involved in all types of societies (such as credit societies) and banks (such as the Central Bank and State Banks), as well as cooperative marketing, storage, and warehousing, as well as other important societies such as dairying, milk supply, transportation, and industrial societies.

(2) It is necessary to establish a central committee for joint training.

(3) The state government would be in charge of putting these plans into action. The Ministry of Food and Agriculture of the Government of India, as well as the Reserve Bank of India, would be the other two major authorities.

(4) The following sources of funding will be used to support cooperative societies of all kinds, including the cooperative training centre:

(i) Reserve Bank of India;

(ii) National Agricultural Credit (Long Term Operation) Fund;

(iii) National Agricultural Credit Stabilisation Fund;

(iv) State Agricultural Credit (Relief and Guarantee) Fund;

(v) State Cooperative Development Fund;

(vi) State Cooperative Bank and Central Cooperative Bank.

(5) Each state shall have a Central Land Mortgage Bank and Primary Land Mortgage Banks at the local level.

Co-operative Societies – Meaning and Formation

Co-operative societies are profit-driven organisations that seek to increase the marketability of agricultural and other labour-intensive industries’ products. The Government of India passed the Multi-State Co-operative Societies Act in 2002, based on the Mirdha Committee’s recommendations and the Model Co-operative Societies Act, allowing cooperatives to operate democratically and autonomously. This article discusses the most important characteristics of India’s cooperative societies.

Objectives of Co-operative Societies

1) They want to sell products and services.

2) They want to get rid of middlemen’s unneeded gains in trade and commerce.

3) They aim to avoid the exploitation of society’s weaker members.

4) They seek to preserve people’s rights as both producers and consumers.

5) They encourage mutual respect and education among their members and the wider public.

In India, What Is The Current State Of Cooperatives?

The movement today includes 5.03 lakh cooperatives, 210 million members, a 100 percent rural network, 67 percent rural household coverage, 46.31 percent agricultural credit, 23.5 percent fertiliser production, 51 percent oil marketing, 55 percent handlooms, and 62.5 percent village storage facilities. Currently, the country has 21 national cooperative federations, 361 state cooperative federations, and 2572 district cooperative federations. Cooperation has an impact on every aspect of economic activity.

Conclusion

Cooperative Societies are defined as “an autonomous group of people who have come together voluntarily to achieve their common economic, social, and cultural needs and goals through a jointly-owned and democratically-controlled enterprise.” India is an agricultural country that helped to establish the world’s largest cooperative movement. The urge for profit is balanced by the requirements of the members and the larger community’s interests. The Cooperative Movement was founded by the weaker sectors of society to safeguard their members from profit-hungry businesses.