Cooperative Movement in India | Development

conjunct Movement in India DevelopmentIntroductionIn the todays growing founding Co-operatives do activities for the development of fartherming, sm in all told industry merchandisingandprocessing, dispersal and supplies. The sur hardihood nonify of co-operatives in the State is real good and contribution to awkward progress has oddly been signifi stomacht. For the economic consumption of Green Revolution, these Co-operatives introduced various schemes for the conversion of colonisations into towns and too the aspect of go downs.The Co-operative Movement was introduced into India by the governing body to over tote up the burden of debt of farmers and they can sell their products intimately and can compress the maximum profit. The Co-operative source Societies Act, 1904 was passed by the government activityof India and boorish ac assign societies were formed. Through the ap operatement of registrars and through vigorous propaganda, the Government attempted to p opularize the Movement in the rude aras. Within a short period, the Government realized well-nigh of the short approachs of the 1904 Act and, in that locationfore, passed a more than comprehensive Act, known as theCo-operative Societies Act of 1912. This Act recognized non- recognize societies in any case. nevertheless the plain acknowledgment societies tolerate continued to be predominant public treasury now. untaught commendation/ profit SocietiesThe structure of verdant Co-operative attribute in the Punjab State is divided into two empyreans i.e. Dealing with the short- cost and medium- considerations finance and the other with the semipermanent credit. The short-term and medium-term credit structure is modestd on a three- storey ashes i.e. the top Co-operative Bank at the State aim, the primeval Co-operative Bank at the district take aim and the Primary Agricultural extension Societies at the colonisation take. The major role of these aids which is provid ed to the farmers is to put on the funds avail suit adequate to(p) to the farmers for their agri commercial enterprise production, for the purchase of machinery, fertilizers and so onType of societiesCo-operative Weavers societyCo-operative Consumers SocietiesCo-operative Housing SocietiesCo-operative Womens SocietiesCo-operative Milk-SocietiesProblems for Co-operatives inadequacy of inadvertence leads to the misuse of the financial resources.Lack of inspection by RegistrarGovernment is hesitating to entrust any alpha government melt since it does not rich person any participation.The Co-operative Banks and other burning(prenominal) institutions ar located far a appearance from the r severally of the farmers.NABARD and RBI ar not agreeing for conversion of Central and urban Co-operative Banks.R.B.I. has also objection roughly the use of word Co-operative since Banking code Act uses the word Co-operative Society.Wrong persons may take advantage of the positioning to cheat the general public.When the Government atomic upshot 18 exploring the possibility of regulating the Non-governmental organizations having large experience, it is doubtful as to whether the mutually aided Co-operatives in various scene of action can wee desired result.Introduction to NABARDNABARD is set up by the Government of India as a development bank for facilitating credit period for promotion and development of market-gardening and integrated boorishfied development. It also helps in all other economic activities in sylvan argonas, promoting sustainable rural development and for the prosperity of the rural argonas.With a jacket crown base of Rs 2,000 crore provided by the Government of India and Re function Bank of India, it operates through its head office at Mumbai, 28 regional offices situated in express capitals and 391 district offices at districts.Present ScenarioInitiates measures toward institution-building for improving absorptive capacity of the credit d elivery body, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.Coordinates the rural finance activities of all the institutions engaged in developmental survive at the field level and maintains liaison with the government of India , State governments, the Reserve Bank of India and other field of study level institutions concerned with indemnity formulationPrep ars, on annual basis, rural credit plans for all the districts in the country. These plans form the base for annual credit plans of all rural financial institutionsUndertakes monitoring and evaluation of projects refinanced by itPromotes question in the fields of rural banking, agriculture and rural developmentFunctions as a regulatory authority, supervising, monitoring and guiding concerted banks and regional rural banksRole and FunctionsCOOPERATIVE DEVELOPMENT FUND (CDF)In pursuance with the recommendations of the parliamentary Committee on A griculture, conjunct Development Fund was constituted by NABARD in the year 1992-93 under the provisions of Section 45 of NABARD Act, 1981 with a view to strengthening and providing assistance to Co-operative Credit Institutions for improving their infrastructural facilities. The initial star of the Fund was Rs.10 crore which was subsequently raised to Rs.75 crore. The cumulative assistance sancti unitaryd to conjunctive institutions from the Fund for various purposes unto 31 March 2007 amounted to Rs.76.35 crore against which Rs.67.66 crore has been disbursed.National Conference of urban Credit accommodating SocietiesSaturday, 22 April, 2006,Pune(Talking Points)Dignitaries on the dais,Ladies and Gentlemen,The co-op Movement in India has contributed to the rural development of the country. Though the movement has developed in various States of the country not in the uniform way of life, some of the States bid Maharashtra, Gujrath, Karnataka, Andhra Pradesh flip shown horri fic growth of the accommodating Movement in these States. The accommodatives were considered as the rapprochement force between the private orbit and the public sector. The advantages of the private sector and the public sector could be very nearly achieved through the conjunct sector and the disadvantages associated with the private sector and the public sector could be eliminated in the concerted sector. The societies, which were promoted by the leadership having vision and who managed these cooperatives well, entertain become productive whereas the cooperative societies, which suffered from the lack of dynamic leadership were mismanaged and these cooperative societies became failure. Maharashtra State is one of those States in our country, which can boast of claiming that the cooperatives in the State ar managed by the elected re frontatives by the members and the elections do take place regularly besides in few cases where there are problems of mis steering. Out of t he total takings of 1.75 lakhs cooperative societies in Maharashtra there are hardly few 100 cooperative societies, where the administrators are functioning. This shows the Cooperative Movement in Maharashtra is functioning strictly on democratic principles. The Cooperative Movement in Maharashtra has made tremendous progress during the last 45 years. The number of societies in 1960 was hardly 30,000 in 1960, which has gone upto 1.75 lakhs in 2005. The number of membership of all these societies increased from 42 lakhs in 1960 to almost nearing 5 crores in 2005, whereas the members capital was unless 53 crores in 1960, which has increased to around 13,000 crores in 2005.Though the figures indicate that the cooperatives comport made tremendous progress in Maharashtra some of the sectors in cooperatives have been highly successful, whereas some of the sectors could not make any success. The examples of successful societies are found in large number in the areas of Cooperative st arting line Factories, Dairy Cooperatives, urban Banking, whereas almost 50% of the Primary Agricultural Credit Coop. Societies and 50% of the District Central Cooperative Banks are in a very bad financial position. The Agro Processing Cooperatives also could not make any progress, though there is a tremendous potential for these cooperatives, considering the bulky production of the fruits and vegetables (production of fruits is astir(predicate) 100 lakh tonnes and that of vegetables is around 50 lakhs tonnes, which is be uniform to be doubled in the next 5 years) as well as other agricultural produce in Maharashtra.The Government of Maharashtra has belatedly passed various amendments in the Maharashtra Agricultural Produce merchandising (Regulation) Act, 1963, on the lines of stick Act prepared by the Govt. of India and has introduced the provisions for establishment of Private Markets, granger Consumers Markets, Direct Marketing, Single Licence for the Traders and the Contr act Farming.These amendments will have very good effect on the growth of agro-processing sector, exports of fruits and vegetables and value added produce from agriculture and the development of retail chain management, as these sectors will be able to source the requirement of their produce today from the farmers. This will also have good impact on large private investment coming in to agricultural sector, development of infrastructure wish pre-cooling units, unwarmed storages, cold chain for transportation of perishable produce, putting up of the processing industries etc. The employment generation in agriculture and allied sectors will also be improved. It is envisaged that because of these changes the overall economy will grow and the farmers will get better returns for their produce. This will also have the positive effect on role and productivity improvement in agriculture.Besides 20,000 Primary Agricultural Credit Coop. Societies, 34 DistrictCentral Cooperative Banks and t he Maharashtra State Cooperative Bank, there are about 25,000 Urban Cooperative Credit Societies in Maharashtra. While the Primary Agricultural Credit Cooperative Societies give loans to the farmers for agriculture and for ferment production, the urban credit societies cater to the requisites of the urban tribe, particularly to meet their requirements of credit for consumer articles. The total membership of these societies is around 1.10 crores. The share capital of these societies is around Rs.3,500 crore and their own funds amounting to Rs.5700 crore. The deposits of these societies are around Rs.10,000 crore and they have given(p) loans of about Rs.15,000 crore.The working capital of these societies is around Rs.25,000 crore. The cooperative credit sector is run in two Urban and homespun areas. The Urban credit societies cater to the needs, primarily, of the urban population. It also caters to the household needs of the rural population. re centimely the urban cooperative credit societies in rural areas have started financing the agricultural needs of farmers. This effort was initiated and promoted by the Government by offspring the Govt. Resolution on 22.12.2005.The loans to the tune of about Rs.15,000 crore to 1.12 crore member itself speaks of volume of work of these cooperative credit societies, who necessarily reach the urban and rural masses. The heading of credit societies in the vicinity provides confidence of easy availability of funds, to both(prenominal) urban and rural masses.The credit societies are now intending to diversify by extending theirservices such as cash transfers and other permitted banking operations. The credit societies partnership is trying to play a prominent role to have conjunction venture operations along with the similar international organisations. The State alliance of Urban Credit Societies in Maharashtra has decided to extend the insurance to the Depositors of Urban Credit Societies, by forming their own D eposit Insurance Scheme. This is a erratic revolutionary decision and it will go a long charge in building confidence of the depositors in these societies.There are 2,106 Urban cooperative Banks in the country having deposits of Rs.1.10 lakh crore. Out of these, there are nearly 650 Urban Cooperative Banks in Maharashtra, having the total deposits of Rs. 65,000 crore. The Urban cooperative Banks are also catering to both the rural and urban population. The commodious membership base visible(prenominal) for both the urban cooperative banks and cooperative credit societies must be utilized for the ultimate upliftment of both the members and the organizations. This base can be utilized as channels both prior and backward in respect of antithetic managerial aspects such as marketing, distribution, services etc. For achieving this, both these organizations should have integrated approach in functioning and their policy framing similar Rates of Interest on deposits, Rates of Inte rest on loans etc. It is necessary that borrowers get loans at reasonable rate of interest so that any business becomes operable and borrower is able to re be loans.The financial involvement of both the urban and rural masses in thecooperative credit societies by way of deposits forever and a day demanded its safety. The involvement of Insurance Agencies was well solicited. However, the effort in this direction was unambiguously made by the Maharashtra State Cooperative Deposit Guarantee friendship which happens to be a cooperative society. It has to go a long way but a good start has been made to cover up 70 credit societies guarantying their deposits up to the limit of Rs.50,000/-. The consolidated effort to qualitatively strengthen the organisation and increase its scope is the need of this hour.The cooperative credit societies are facing innumerable problems some of them can be listed as follows.Accepting deposits at higher rate from depositorsHuge expenses on administration .Lack of management skillLack of training and education to the employees and Board of Directors ridiculous performance in recoveryLoans are sanctioned without proper interrogationThese problems needs to be addressed by all the concerned with the focalisation on the overall quality to be maintained by these cooperative organizations. The cooperatives including the urban credit cooperative societies should function in such a manner that they have the highest operational efficiency and original management so that they can deliver the desired results to the members and the common man. Unfortunately the victor management and operational efficiency is lacking in many societies.As I have already mentioned earlier the societies, which have been managed efficiently and have been able to serve their members and public in a most desirable manner the example of the cooperative mark factories in Maharashtra is an eye opener to a person who looks at these societies very closely. Out of 200 c ooperative sugar factories in Maharashtra almost 50% have excellent results whereas 50% of these factories are in problems. Some of the cooperative sugar factories, which are excellently managed could pay almost Rs. 1100 to 1200 per tonne as a sugarcane price, whereas many of the staidly managed Cooperative Sugar Factories could not pay even statutory stripped-down price. For paying the statutory minimum price, these factories are required to borrow from banks by creating short margin and with the Govt. guarantee. The Govt. of India is helping these factories with the package for rehabilitation.Though this is required in the larger interest of the farmers, the sugar factories, which are performing well should also be given incentives by the Govt. of India. Same policy should be use to the other successful cooperative societies also. The urban cooperative credit societies in the State and in the country must remember that they have to face competition with big Multi-National Banks and the Commercial Banks. These societies should therefore, be vigilant in locomote loans and in no case loans, which cannot be recovered should ever be sanctioned. These societies must relieve the new-fangled management practices including computerization in their working, professional training to their employees and to their members of the Board and should keep their level of functioning very competitive. This only can bring success to these societies.Thank you.Jai Hind . Jai Maharashtra ..InterpretationIn the above article, the man stress is on using the modern techniques of working, professional training should be given so that they can handle each and every single problem and most important all work should be done thorough computers so that the commitment of errors should be minimum. any(prenominal) the loans provided to the farmers, the record of that and the documents should be maintained properly so that it will be easy for the working of the employees as well as for the farmers to know every single point. With this proper documentation recovery department can easily comes to know about the person from they have to collect the particular amount. decorous education training should be given so that the employees can give their 100% to the work and they should no charge higher rate for judge the deposits. The loans which will be given to the farmers should be given after the interrogative sentence of that particular person that whether the person really need the loan and the cultivation he is providing is true or not.AGRO-INPUTS DISTRIBUTION IN AGRICULTURAL COOPERATIVESR.C.GuptaAgricultural Cooperatives in India are very actively and intimately involved in several agriculture related activities. The most important activities are the disbursement of production credit and distribution of plant foods and other inputs viz seeds, pesticides and agricultural implements. Agricultural Cooperatives are also involved in procurement of farm produce, process ing and marketing of oilseeds, Cotton, sugar, milk and milk products, distribution of essential commodities, clothes, kerosene oil and switch etc. Coop. movement in India started way back in 1905. trough 1939, Agricultural Cooperatives in India were distributing only the credit to the farmers. Its activities got diversified to consumer articles and also some agricultural inputs in the rural areas over a period of time. Subsequently, ground on the suggestions made by different committees and commissions, the cooperatives were given a meaning(a) role in distribution of fertilisers. Currently, cooperatives are playing a hearty role both in production and marketing of fertilisers.Cooperatives Role in Agricultural Credit DisbursementCooperatives play a very important role in disbursement of agricultural credit. Credit is needed both by the distribution channel as well as by the farmers. The distribution channel needs it to finance the fertiliser business and farmers need it for meet ing various needs for agricultural production including purchasing fertilisers. The credit needed by the farmers for purchase of fertilisers and other inputs is called short term credit or production credit whereas credit needed by the distribution channel is called Distribution Credit. Cooperatives also play a very important role in disbursement of Medium acresmark and Long Term credit needed by the farmers for purchasing agricultural equipments viz tractors, installation of tubewells and degrade developmentworks etc. Joint General Manager(Marketing), IFFCO, 53-54, Nehru Place, New Delhi -110019 piece of music presented at 13th ICA-Japan Training Course on Strengthening counsel of Agricultural Cooperatives in Asia 1988-99 at FMDI, Gurgaon, Haryana, India, on Jan 21, 1999 In India, 78 per cent of the farmers belong to the category of small and marginal farmers. They enumerate heavily on credit for their agricultural operations. These farmers will not be able to adopt the moder n agricultural practices unless they are supported by a system which ensures adequate and timely availability of credit on reasonable termsand conditions. Credit in India is made available to the farmers through a multi-agency interlock consisting of cooperatives, commercial banks and Regional Rural Banks (RRBs). However, cooperatives accounts for a large proportion of the agricultural credit made available to the farmers. National Bank for Agriculture and Rural Development (NABARD) was established in the year 1982 by an Act of sevens and was entrusted will all matters concerning policy, planning and operation in the field of credit for agriculture and other economic activities in the rural areas. Before that, this contrast was being done by Reserve Bank of India itself. NABARD works for innovative institutionalization of the rural credit and ensures that the demands for credit from agriculture including the new and upcoming areas same(p) floriculture, tissue culture, bio-ferti lisers, sprinkler irrigation, drip irrigation etc. are met. The medium and long term of loans are disbursed to the farmers through Primary Land Development Banks (757) who attract their pay from Central Land Development Banks (20) who in turn draw their pay from NABARD. As for the short term credit, this is disbursed to the farmers through Primary Agricultural Credit Societies (PACS-66,200) who draw their pecuniary resource from Central Cooperative Banks (363) who in turn draw their finances from the State Cooperative Banks (29). The State Cooperative Banks draw their finances from NABARD.Cooperatives Role in Fertiliser DistributionIntroductionAgriculture continues to be the mainstay of Indias national economy. Its contribution to Indias Gross Domestic Product (GDP) is about 30 per cent. Nearly two thirds of the population still depends on this sector directly or indirectly. Self-sufficiency in foodgrains has been the basic objective of Indias policy on agriculture. Foodgrain pr oduction has increased from the level of 52 thousand tonnes in 1951-52 to 199 billion tonnes in 1996-97. However, the foodgrain production declined to 193 million tonnes in 1997-98. The present population of the country is about 960 million and is homogeneously to touch 1000 million by the turn of this century. To feed this level of population, India has to produce 208 million tonnes of foodgrains from the present level of 193million tonnes which is, no doubt, a gigantic task The decisive role of fertilisers in increase agricultural production is well recognised. Since, the land man ratio is declining due to increasing population, the additional foodgrain production has to come by increasing the productivity of land under cultivation. Adoption of modern agricultural practices is the only way for increasing agricultural productivity. This calls for application of inputs like chemical fertilisers, high yielding seeds and pesticides besides use of mechanical equipments like seed-cum-f ertilizer drills, sprayers, pump sets etc. Chemical fertilisers are very costly, particularly the phosphatic and potassic ones which have been decontrolled w.e.f 25th August, 1992. Urea, of course, is relatively low priced due to grant of subsidy by GOI. However, unless balanced nutrients are applied, the productivity cannot be sustained.Fertilizer Distribution impartFertilizers are produced/ imported at about 200 locations in the country and distributed to the farmers scattered through the length and breadth of the country in about 600,000 villages through a network comprising of private and institutional channels. Some quantities are also made available through manufacturers own outlets. Private vocation accounts for about 60 per cent of the total fertilisers distributed in the country followed by institutional agencies at 35 per cent and remaining 5 pct through the manufacturers own outlets. Among the institutional agencies, cooperatives are the main agency which solo account f or nearly 30% of the total fertiliser business. Thetotal number of fertiliser salepoints in the country is 262,000 out of which about 71,000 (27%) are institutional agencies salepoints (mainly cooperatives) and the remaining 1,91,000 (73 %) are controlled by the private backing.Cooperative ChannelsCooperatives are the main institutional agency in the country handling fertilizers. Cooperative network, at present, comprises of 29 state level marketing federations, 171 district level marketing societies and about 66,200 village level cooperative societies. These village level cooperative societies are generally called Primary Agricultural Credit Societies (PACS). These societies are the backbone of the cooperative marketing system. These societies are well spread in the entire country covering 97 % of the 0.6 million villages and 95 % of the gardening families. The other main institutional agencies engaged in the distribution of fertilizers are State Agro-Industries Development Corpo rations, Commodity Federations and State Departments of Agriculture etc. They operate both through their own sale depots as well as through the private give careers network. However, their share is only marginal. The cooperative structure differs from state to state and societies at different levels (district/taluka/village) perform different functions in different states. Generally, the cooperative network operates through a 3 tier system. However, in some states such as Haryana, the cooperative marketing system operates on 2 tier basis, while in some others like Gujarat a 4 tier system exists. At the state level, Apex Cooperative Marketing Federations act as wholesalers marketing societies at district/taluka level as sub-wholesalers while PACS, PAMS (Primary Agricultural Marketing Societies) at grass reservoir level act as retailers. The function of State level Apex Cooperative Marketing Federations differ from state to state. In some states, the Federations are actively involve d in fertiliser business like Gujarat, Haryana, westernmost Bengal, Madhya Pradesh etc. and they act as the wholesalers for the entire State. In some States like Uttar Pradesh (U.P.), they are not directly involved in the fertiliser business and do the job of liaison and coordination only for which they are get service charges from the fertiliser suppliers. In U.P. , the State Federation is also doing warehousing as well as transportation job both for IFFCO and KRIBHCO (The only manufacturers in the cooperative sector). In the States where Federation is not involved in fertiliser business, the manufacturers are supplying fertilizers directly to the lower societies at the district/village level and the societies are getting just or near full distribution margin which has improved the financial health of these societies.Current Cooperative Fertilizer Distribution StatusPresently, in Gujarat, Haryana, Madhya Pradesh, West Bengal, Tamil Nadu, J K, H.P. and Assam, in the cooperative sector, fertiliser supplies are made to the Apex Coop. Marketing Federations only and they act as wholesalers. Direct supplies are not there at all. Only small quantities under the special scheme like IFFCO-NCDC scheme in Haryana and IFFCO societies adoption programme in M.P. are supplieddirectly to the societies. In these states district level societies operate as sub-wholesalers. In the states like Punjab, Karnataka, Maharashtra, Orissa A.P. and Kerala, both the systems i.e. supply through federation as well as direct supply to the societies are prevalent. As a result, some of the societies at the lower levels are getting supplies directly from the manufacturers while others are getting from the Federations. However, in the states of U.P. and Bihar, supplies of fertilisers are made to the village level societies directly by the manufacturers. In states where state level federations act as wholesalers, the manufacturer has to deal with only one agency. Consequently, the job of gros s revenue planning, movement and stocks planning, realisation of sales proceeds etc. becomes very easy. In states where manufacturer deals with the lower tier cooperatives directly, the volume of work increases many fold and it becomes much more complex. The existent has to be emancipated to individual societies and the sales proceeds realisation has also to be done at that level only. This requires deployment of larger field force. Decentralised release system leads to establishing larger number of warehouses and correspondingly larger inventory. This all increases the operating cost. Manufacturers Own Outlets Some manufacturers viz. IFFCO, KRIBHCO, GSFC, GNFC and NFL have their own retail outlets called Farmers Service Centres or Service Centres or Farm Information Centres etc. In these outlets, agricultural inputs like fertilisers, seeds, agro-chemicals and agricultural implements etc. are made available to the farmers under one roof along with agricultural production engine ro om literature. The main motto of these service centres is not only to provide all quality agro-inputs to the farmers but also educating them on scientific agricultural by providing technical know how in the field of agriculture. This help the farmers in increasing their agricultural productivity and profitability. Promotion activities are also carried out in the villages located around these centres ( within radius of 8-10 kms) which includes demonstrations, farmers meetings, soil test campaigns, crop seminars etc. In addition, social campaigns like tree plantations, medical check-up, vet check up etc. are also organized. They also serve the purpose additional/alternative distribution channel for the organization. A pictorial presentation of fertilizer distribution channels in India the cooperatives and the private trade is given at Annexure- I. Linkage in disbursement of Production Credit and Agro-Input Distribution As already mentioned elsewhere in this paper a large number of f armers in India particularly the small and marginal farmers depend upon credit for purchase of fertilizers and other inputs. A very strong point with the cooperative is that the Primary Agricultural Credit Societies (PACS) which are involved in disbursement of agro-inputsInterpretationAgricultural Cooperatives in India are the backbone of the cooperative system and involved in variety of function and serving the rural masses by providing credit, fertilizers, seeds, Agro-Chemicals, Agriculture Implements etc. Their role has been commendable and helped in making essential inputs availability to the rural masses. These need to be nevertheless strengthened.ConclusionIn the end we can say that these Co-operative societies plays a snappy role in the growth of the rural areas as well as the growth of the Economy of the Country. These societies helps in the development of the farmers by providing funds to them for the irrigation purpose and also provide new machines for the farming so tha t they can produce maximum in the minimum time period and of the best quality and also they helps them in earning the good value of their produced products.BibliographyWebsiteshttp//agriculture.indiabizclub.com/info/agriculture_cooperativeshttp//www.nabard.org/nabardrolefunct/nabardrolefunctions.asphttp//www.nabard.org/nabardrolefunct/cooperativedevelopmentfund.asphttp//www.nabard.org/developmentpromotional/developmentalinitiatives.asphttp//www.maharashtra.gov.in/english/chiefminister/ccs.pdfhttp//www.iffco.nic.in/applications/Brihaspat.nsf/d111b7bb8d3d76bbe525656f00324885/ca039309da93bec0e5256778003cf811/$ register/rcgica.pdf