A Thriving Model for Economic Growth

Kerala’s cooperative sector is one of the most thriving models for economic growth in India. It is a key driver of the state’s economy and has been instrumental in poverty reduction and social empowerment. The co-operative sector in Kerala is classified into three categories: primary co-operatives, secondary co-operatives, and apex co-operatives. Each category plays an important role in the overall development of the sector. In this blog post, we will discuss the classification of Kerala’s cooperative sector and its impact on the state’s economy. Stay tuned!

Co-operative Sector definition

Co-operative Sector definition: The cooperative sector is a type of business organization that is owned and controlled by its members. Co-operatives are classified into three main categories: consumer, producer, and worker. Co-operatives are formed to provide services or goods that the members need or produce.

The cooperative sector is an important part of the global economy, accounting for $650 billion in revenue and employing over a billion people. The cooperative sector is a thriving model for economic growth and poverty reduction.

Co-operative Sector In Kerala

Co-operative Sector is a vital part of the Kerala economy. It is classified into three sectors: agricultural, industrial and service. 

The Agricultural Co-operative Sector accounts for the largest share of the co-operative sector. The main objective of this sector is to promote and develop agriculture and allied activities. 

The Industrial Co-operative Sector is engaged in the production and distribution of goods. The main objective of this sector is to promote small-scale industries. 

The Service Co-operative Sector is engaged in providing various services. The main objective of this sector is to provide employment opportunities and promote self-employment ventures.

Kerala’s cooperative sector is a prime example of the success of the cooperative model. The cooperative sector in Kerala is one of the largest and most diversified in India. There are over 26,000 co-operative societies in Kerala, with a membership of over 60 million people.

Classification of Cooperative Sector

Classification of Co-operative Sector can be done as mentioned below:

Consumer: 

Co-operative societies were formed for the purpose of providing goods and services to their members.  They may be classified as general, housing, credit and marketing.

Producer:

Co-operative Societies were formed for the purpose of production and marketing of goods and services.  They may be classified as agricultural, dairy, fisheries and marketing.

Mixed:

Co-operative Societies are engaged in both production and consumer activities.

Service:

Co-operative Societies are engaged in providing services to their members. They may be classified as banking, insurance, transport and communication.

Co-operative Societies

There are various types of cooperative societies:

Primary Co-operative Societies:

These societies are formed to carry out economic activities for the welfare of their members. The primary co-operative societies can be further classified into two categories- producer co-operative societies and consumer co-operative societies.

Producer Co-operative Societies:

Producer co-operative societies are formed to undertake the production and marketing of goods. The members of these societies are producers who supply the raw materials and they are also the consumers of the finished products.

Consumer Co-operative Societies:

Consumer co-operative societies are formed to undertake the purchase and sale of goods and services. The members of these societies are consumers who buy the goods and services from the society.

Secondary Co-operative Societies:

These societies are formed to carry out economic activities for the welfare of their members. The secondary co-operative societies can be further classified into two categories- credit co-operative societies and non-credit co-operative societies.

Credit Co-operative Societies: Credit co-operative societies are formed to provide credit facilities to their members. The members of these societies are borrowers who get the loans from society and they are also the lenders to other members of the society.

Non-Credit Co-operative Societies: Non-credit co-operative societies are formed to provide other services to their members. The members of these societies are not borrowers and they do not get loans from society.

Tertiary Co-operative Societies:

These societies are formed to carry out economic activities for the welfare of their members. The tertiary co-operative societies can be further classified into two categories- co-operative banks and co-operative unions.

Co-operative Banks: Co-operative banks are formed to provide banking facilities to their members. The members of these societies are depositors who deposit the money in the society and they are also the borrowers from the society.

Co-operative Unions: Co-operative unions are formed to provide other services to their members. The members of these societies are not depositors and they do not get loans from society.

Cooperative Initiatives of Kerala

Following are some of the Cooperative Initiatives of Kerala:

Agriculture cooperative societies

An agricultural cooperative society is a group of farmers who share ownership of lands, as well as other farming supplies and operations. Members pool their resources to purchase farm inputs and produce, as well as market them. Members receive profits and losses based on their part of the society’s profits and losses. These societies are engaged in activities such as procurement, processing, marketing and distribution of agricultural produce. The cooperative societies of Kerala initiated these societies for the benefit of farmers.

Kerala bank

Keralabank is a state-level apex cooperative bank that provides financial assistance to cooperative societies in Kerala. These banks are beneficial for cooperative societies because they provide loans at lower interest rates.

ULCC: 

The oldest worker cooperative in India is the Uralungal Labor Contract Co-operative Society (ULCCS). It was founded in 1925 in Calicut, Kerala. Nearly 1415 people are members of the ULCC Society. More than 4,000 works have been done by the team. The UC has completed projects worth over a billion rupees, including city road improvements, the Kozhikode Sarovaram Project, the renovation of Kappad Beach, the Kozhikode Arayidathupalam Bridge, the Iringa Craft Village, the Edasseri Kadavu Bridge, and the Government Engineering College in Alappuzha.

Characteristics of Cooperative Society

Cooperative Societies can be defined by the below-mentioned characteristics:

– voluntary and open membership

– democratic control by its members

– provision of services to members at cost or below cost

– autonomous from external control

– limited return on capital invested

– concern for community welfare.

Conclusion 

Kerala’s cooperative sector is a thriving model for economic growth that has benefitted students, farmers, and other citizens of the state. The sector is well-governed and provides essential services such as healthcare, banking, and education. By studying the successes of Kerala’s cooperative sector, other states can create similar models that will benefit their own citizens.