According to the International Labour Organisation, also termed ILO, cooperatives can be defined as many people or organisations that intend to work with one another with the social, cultural, and economic goals in mind through a democratically governed organisation. In India, a new cooperation ministry has been formed to strengthen the cooperative movements throughout the country. The cooperative movements in India were started back in 1904; however, they became effective in the 1950s. 

The Historical Background of Cooperatives in India

The cooperatives in India originated back in the early 19th century when most of the population was majorly dependent on agriculture. During those times, the agricultural sector was confronted with the issues of poverty, famine, social unrest, indebtedness of farmers, and lack of arrangements for financing. In 1904, the cooperative societies act was introduced to overcome these emerging issues. However, the cooperative societies act was solely based on European ideas and was established to fulfil British colonial needs. 

In the swadeshi movement, the swadeshi industries and swadeshi education and swadeshi cooperatives were introduced in several parts of the country. The first-ever cooperative society was the Agricultural Credit Cooperative Society in Karnataka. Before independence, the cooperative movement in India went through 7 different development stages, which include Cooperative Credit Societies in 1904, Indian Famine Commission in 1901, Cooperative Societies Act in 1912, Swadeshi movement in1905, and Montague-Chelmsford Reforms in 1919. 

Cooperative Movements Post-independence 

  • Mixed economy – After the independence, the country decided to pursue a strategy for the planned economic development for constructing the mixed economy. It includes three major sectors: cooperative, public, and private. Cooperatives were the balance between the private and public sectors. 
  • Five-year plan – Post-independence, the five-year plans were recorded as a vital part and were termed the three pillars of democracy after schools and panchayats. 
  • National cooperative policy – In 2002, the Indian government announced the National cooperative policy based on the recommendations made by the NDC or National Development Council. 
  • NDC – NCDC or the National Cooperative Development Corporation was initially introduced under the National Cooperative Development Corporation Act of 1962 as the statutory corporation. 
  • Cooperative committees – Rural Credit Survey Committee suggested the participation of states in cooperatives at different levels in 1954. The S.T. The government of India appointed the Raja Committee for suggesting measures to improve the cooperative law. 

Cooperatives in India 

The constitution act of 2011 introduced a new Part IXB following the IXA. In article Article 19(1)(c), the term “Cooperatives” is added after “associations and unions”, which allows the citizens of the country to form a cooperative society as one of their basic rights.   

Features of a Cooperative Society  

The following are the features of a cooperative society – 

  • A cooperative society is a non-capitalist people’s association. 
  • A cooperative society is not a charitable organisation but a business. 
  • Their members share the risks as well as the profits. 
  • Cooperative society is a non-profit organisation but instead a service to its members. 
  • The Cooperative society shows unmatched support for the less privileged society. 
  • The Cooperative societies are mostly involved in several socio-economic movements. 
  • Cooperative society eliminates all sorts of exploration. 
  • The cooperative society generates employment opportunities for the youth of the country. 
  • It imbibes values such as mutuality, equality, and cooperation in people. 

Types of Cooperative Societies 

There are mainly five types of cooperative societies. These include – 

  • Retail cooperative society society
  • Worker cooperative society 
  • Producer cooperative society 
  • Service cooperative society society
  • Housing cooperative society

Conclusion 

According to the International Labour Organisation, also termed as ILO, the cooperatives can be defined as a bunch of people or organisations which intend to work with one another with the social, cultural, and economic goals in mind through a democratically governed organisation.