INTRODUCTION• In 1904 the British Government passed the Co-operative Credit Societies Act• The objective of this Act-1. To encourage thrift, self-help and co-operation amongst persons of limited means and increase their productive capacity and financial resources2. To grant advances if needed by member workers against the securities of raw materials and finished products.• Funds for industrial co-operative societies are available from co- operative banks and private entrepreneurs.• Government provides subsidies, grants-in-aid and loans for the purchase of machinery, equipment, raw materials etc.
DEFINITION• An industrial cooperative is an association of workers & craftsmen involved in cottage or village industries, who come to gather to undertake collective production, processing & marketing of goods manufactured by the members & provide them with the necessary services & assistance• It can be defined as ‘A cooperative organized by workers, controlled by worker & managed by workers for meeting their common purpose’.• Thus, the prime objective of an industrial co-operative is to benefit the workers socially and economically.
AIMS AND OBJECTIVES• To develop self-reliance, co-operation and self-respect among the members.• To purchase and supply raw materials, tools and equipments needed by workers.• To obtain contacts from the govt. and other organizations.• To purchase machinery and other equipments required by members and to hire them to the members for quality production.• To construct take-on rent godowns for finished products and raw materials.• To undertake all such activities needed for the welfare and well-being of the member and the society.
ROLES• Requisite facilities by the government.• Pooling of capital and skill.• Welfare of workers• Development and upliftment of workers.• Providing source of livelihood.• Socio-economic development of members.
ORGANIZATION SUPPORTING IT• National Federation of Industrial Co- operatives.• National Federation of Specific type of Industrial Co-operatives.• State Level Federations.• Central and Primary Industrial Co-operatives.• Co-operative Industrial Estates.
TYPES OF INDUSTRIAL CO-OPERATIVES• Industrial Production Society.• Industrial service cooperative society• Common facility workshop society• Workers co-operatives• Community co-operatives• Secondary co-operatives• Credit unions• Workshop Co-operatives
BENEFITS OF INDUSTRIAL CO-OPERATIVES• Employment Opportunities• Training and Knowledge• Marketing of Goods• Higher Standard of Living• Availability of necessary raw material and equipment sat Nominal rates.
PROBLEMS OF INDUSTRIAL CO-OPERATIVES• Problem of Finance• Problem of Human Resource• Problem of Production• Problem of Marketing• Lack of Member Education• Lack of support from Higher Institution• Lack of loyalty of Members• Lack of proper Planning
KINDS OF INDUSTRIAL CO-OPERATIVE• Handloom co-operatives• Handicrafts• Oil crushing• Leather tanning• Shoe making• Carpentry and black smithy• Ban and rope making• Rice husking and floor milling• Sericulture• Pottery
INSTITUTIONAL SUPPORT FOR CO-OPERATIVES• National Cooperative Development Corporation (NCDC)• Khadi And Village Industries Commission(KVIC)• National Federation Of Industrial Co-operative (NFIC)• National Bank for Agricultural And Rural Development (NABARD)
CONCLUSION• The cooperatives had been formed by the masses.• Industrial cooperatives offer an opportunity.• Small scale industries are have a huge potential.• Government has taken steps to form institutions that give financial support.