COOPERATIVE MOVEMENT IN INDIA

Rockdale Pioneers

            In the era of industrial revolution, the distress and the apathy of the workers lead to find out the cooperative concept. Cooperatives started out as small grass root organizations in Western Europe, North America and Japan in the middle of the last century, however, it is the Rockdale Pioneers that is regarded as the prototype of the modern Cooperative Society and the founders of the Cooperative Movement.

            In 1844 a group of 28 artisans working in the cotton mills in the town of Rockdale, in the north of England established the first modern Cooperative business, the Rockdale  Equitable Pioneers Society. The Weavers faced miserable working conditions and low wages and they could not afford the high prices of food and household goods. They decided that by pooling their scarce resource and working together they could access basic goods at a lower price. Initially, there were only four items for sale: flour, oatmeal, sugar and butter.

            The Pioneers decided it was time shoppers were treated with honesty, openness and respect that should be able to share in profits that their custom contributed to and that they should have a democratic right to have a say in the business. Every customer of the shop became a member and so had a true stake in the business. At first the Cooperative was open for only two nights a week, but within three months business had grown so much that it was open five a week. The Principle, that under pinned their way doing business are still accepted today as the foundations upon which all Cooperatives operate. These Principles have been revised and updated, but remember essentially the same as these practiced in 1844.

Cooperative Movement in India :-

            The Cooperative Movement was introduced in India as a State Policy towards end of 19 century. The economic conditions of agriculturists were very much deplorable, pathetic and indebtedness had increased. Govt. of Madras has deputed Sir Fredrick Nicholsan to study the Agriculture Banks in Egypt in 1882 to probe into possibility of introducing land and agricultural banks. He submitted his report in 1884. He summed up his report in two words, “Find Raiffeisen”.  

            At same time Mr. Dupernex of the Indian Civil Service published an interesting and suggestive book untitled “People’s Bank for Northern India” based on his experiments with village banks in U.P.  These two reports made the Govt. to appoint a committee under Sir Edward Law. Their proposals became the basis of the Bill, which was passed into Law as the “Cooperative credit Societies Act of 1904’. This is the beginning of the Cooperative Movement in India. The development of the Cooperative Movement in India can be studied in two stages 1. Pre-Independent period and, 2. Post- Independent period.

1.    Pre-Independent Period :-

            The Cooperative Credit Societies Act of 1904 in the initial stage, the organizers were required to spread a new idea among the uneducated rural people. The credit societies made significant progress during the initial years. However the Act of 1904 was insufficient to meet the growing needs of the movement, because  the Act did not gave legal protection to other than credit societies.

            The defects of the 1904 Act were rectified in 1912 Act.  With passing of this Act, the Movement made rapid strides and entered into many new fields. The Maclagen  Committee was appointed in 1914 to study, whether the movement was progressing on sound lines before taking the responsibility of fostering further growth.

            With the introduction of the Reforms Act 1919, the Cooperation became a provincial subject. This was another landmark in the history of the Cooperative movement. The Royal Commission on Agriculture was set up. The Commission commanded that these Cooperatives were “the best hope of rural India”.

            In 1930 the economic depression period brought to light the defects of Cooperatives. Hence attention was directed toward consolidation of the existing Societies by developing their resource. The Madras State constituted  the Townsend committee. On the recommendation of this Townsend Committee first Central Land Mortgage Bank was established in Madras in 1934.

            On the recommendations of the Central Banking enquiry Committee in 1931, the Reserve Bank of India was formed in 1934 and its Agricultural Credit Department was setup in 1935.

            In 1932, the Madras and Hyderabad Cooperative Societies Acts were passed. In 1942 Multi unit Cooperative Societies Act was enacted to facilitate to have more than one state of its area of operation. In 1945 D.R. Gadgil Committee advocated for the spread of Cooperative Movement and State aid to Cooperatives.

            1945, the Govt. appointed the Cooperative Planning Committee under R.G.Saraiya to draw up a plan of Cooperative development in the country. The Committee fixed a target of 50% of villages and 30% of rural population to bring under the per view of Cooperative Movement.

            In short, the Cooperative Movement in Pre-independent period occupied not much significant position in the overall economy of the country.

2.    Post-Independence Period

            In order to equip the movement for its new role, it was necessary to formulate a long term policy in regard to its structure and organization. It was in this context  the “Rural Credit Survey Committee” was appointed in 1951. The Committee submitted its report in 1954. The main recommendations were; a) the State partnership at different levels, b) full Coordination between credit and other economic activities, especially marketing and processing and c) administration through adequately trained and efficient personnel, responsive to the needs of the rural population. This scheme was approved and accepted as the basis for the future development to be incorporated into the Second Five Year Plan.

            A notable shift in policy occurred in 1958, when the National Development Council passed a drastic and sweeping resolution which in effect, led to the rejection of the old large sized credit society and the emerged of small sized service cooperatives. Over the period of the three Plans, the Cooperative movement made rapid progress. The movement, during a span of over six decades, had come a long way from humble beginnings in 1904, it had expanded into a mammoth organizations covering 85% of villages and 33% of the rural population of the country.

Five Year Plans - Cooperatives Development.

            The First Five Year Plan described the Cooperative movement as an indispensable instrument of planned action. The Second five year plan set a broad objective of evolving a socialistic pattern of society. For materializing the objective, the Cooperative Sector became a central aim of the national policy. The Third Five Year plan regarded Cooperation as one of the Principal means for bringing about changes of a fundamental nature within the economy. 

            In order to facilitate the implementation of the third plan, the Govt. of India and connected organizations set up a number of committees and working groups to study the various aspects of the movement, they are ; 1). .. on Panchayats and Cooperation, 2). Committee on Taccavi loans, 3). ..on Cooperatives under Railways, 4). ..on Industrial Cooperatives, 5). ..on Cooperative Administration, 6). ..on Urban credit, 7). Mirdha Committee on Cooperation, 8). .. on Cooperative Marketing.

            Growth with stability of the Cooperative Movement was the key-note of the Fourth Five Year Plan. The Main objective of the Fifth Five Year Plan (1974-79) was to build up a strong and viable Cooperative Sector with special emphasis on the needs of the peasants, workers and consumers. This Plan document stated that “Cooperation is eminently suited to bring about desired socio-economic challenges in the country. There is no other instrument as potentially powerful and full of social purposes as the Cooperative movement”.

            The strategy for the Sixth Five Year Plan (1980-85) was to strengthen and consolidate Cooperatives at primary as well as secondary levels and to develop professional cadres for managerial positions in cooperatives. An important event in the Sixth Plan period was the establishment of the National Bank for Agricultural and Rural Development in 1982.

            In the Seventh Plan (1985-90), the basic objective was growth, modernization, self reliance and social justice. The Eighth Five Year Plan was aimed to build up the Cooperative movement as a self-managed, self regulating and self-reliant institutional setup.

         As per the resolution of the all Cooperative Ministers in 1977, to strengthen and develop the Cooperative Movement, a National Cooperative Policy document is evolved and published in 2002.

COOPERATIVE MOVEMENT OF TELANGANA

            After independence, the erstwhile Hyderabad Cooperative Societies Act of 1932 was replaced by Hyderabad Cooperative Societies Act of 1952. And another Act, to facilitate for Land mortgage, an Act as Hyderabad Land mortgage Banks Act 1349F is being enacted.

            As part of the Reorganization of States, the Andhra Pradesh war formed by amalgamating the Andhra State and Hyderabad State in 1956. The Madras (Andhra Area) Cooperative Act of 1932, The Madras (Andhra Area) Land Mortgage Bank Act of and the Hyderabad Cooperative Societies Act 1952 and the Hyderabad Land Mortgage Banks Act 1349 F had been merged and enacted as 1964 Andhra Pradesh Cooperative Societies Act.

            In the light of the liberalized economic policy, the Andhra Pradesh enacted a new Cooperative Act called Andhra Pradesh Mutually  Aided Cooperative Societies Act of 1995. It is in tune with the guidelines of the Model Act of Choudary Brahma Prakash.

INDIAN  COOPERATIVE  MOVEMENT  AT  A  GLANCE  - 2016-17

Ø  Total Number of  Cooperatives                                                  8,54,355

Ø  Total Membership of Cooperatives                                           290.06  millions

Ø  Share Capital of (all level and types) Cooperatives             Rs. 4,06,886.8 millions

Ø  Working Capital ( Credit& Non Credit) Cooperatives            Rs. 125,36,174 millions

Ø  National level Cooperatives Federations                                  17        

Ø  State level Cooperative Federations                                          390

Ø  District level Cooperatives Federations                                     2,705

Ø  Multi State Cooperative Societies                                               1,435

Ø  Primary Agricultural Cooperative Societies(PACS)                 97,961

Ø  No. of villages covered by the PACS                                            6,44,458

Ø  PACS Total Paid up Share Capital                                                Rs. 1,41,215 millions

Ø  PACS Deposits                                                                                    Rs.  846,163 millions

Ø  PACS (Storage Capacity ) in Million MT                                        6.26 million MT

Ø  Total Cooperatives Storage Capacity                                        22.77 million MT

Ø  Total Kisan Credit Cards issued                                                    71.474 millions

Ø  Kisan Credit Cards issued to Cooperatives                                35.883 millions

Ø  Amount disbursed by Cooperatives                                             Rs.  14,27,580 millions

Percentage of  Cooperatives in National Economy

o   Rural Network covered by the Cooperatives                    98 %

o   Rural Network (villages covered by PACS)                        90.8%

o   Total Agriculture Credit disbursed by Cooperatives        13.40%

o   Kisan Credit Cards issued by Cooperatives                        50.2%

o   Fertilizers distributed by Cooperatives                                 35%

o   Sugar Produced                                                                         30.60%

o   Liquid Milk marketed by Cooperatives                                84.17%

o   Fishermen Cooperatives                                                         20.05%

o   Wheat Procurement                                                                 13.3%

o   Paddy Procurement                                                                20.4%

o   Spindleadge in Cooperatives                                                29.34%

o   Direct Employment Generated by Cooperatives             13.30%

o   Self –employment Generated for persons                        10.91%

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