Main areas of co-operative
Cooperative in agribusiness
What is Co-operative?
A co-operative is a group of people acting
together to meet the common needs and aspirations
of its members, sharing ownership and making
A cooperative is a legal entity owned and
democratically controlled by its members.
Agricultural supply cooperatives, in particular,
faced financial stress during that time due to
decreased demand for inputs used in farm
A marketing cooperative is a business
organization owned by farmers to collectively sell
their products. Cooperative can give them greater
power in the market place.
Processing of food grains and other agricultural products is
the most important stage in preparing them for the ultimate
consumption. This can be eliminated if the processing
activities are organized on a co-operative basis by the
producers themselves so that they Call get better return on
their produce .
Agricultural credit is, thus essentially, an
operation of securing money from one source or the other by
creating the confidence that the amount of loan would be
invested in productive operations so that the lender will get
back the loan with interest as per agreement.
A Cooperative organized by workers , controlled by worker
& managed by workers for meeting their common purpose.
Urban credit Co-operatives
Urban cooperative bank is a group of people who form
a co operative society for mutual financial benefits & financial
transactions like any financial institutions in urban towns &
cities functioning under directions of the apex /central
A Housing Co-operative is a business that owns or
rents property for the purpose of housing its members.
The first Cooperative Society Act of 1904 was enacted to
enable formation of “ Agricultural Credit Cooperatives in
villages in India under Government sponsorship. With the
enactment of 1904 Act, Cooperatives were to get a direct
legal identity as every agricultural Cooperative was to be
registered under that Act only.
The National Cooperative Union of India (NCUI) was
established in 1929 as an apex promotional organization for
strengthening of cooperatives.
National Cooperative Development and Warehousing Board
was set up in 1956.
The Indian Co-operative Movement has earned distinction of
being the largest in the world. This is true in terms of
membership and Co-operative network which spread over
almost all the villages in the country and the number of Cooperative Societies .
In our country, there are about 5.5 lakh of cooperative
Societies with membership of more than 22crores.
Voluntary and open membership
Democratic member control
Economic participation by members
Autonomy and independence
Education, training and information
Cooperation among cooperatives
Concern for community
NDDB - National dairy development
Established in 28 November 1979
It provides market support to the producers in rural areas.
This network has been instrumental in supplying liquid
milk & dairy products to the urban consumers.
Located at Anand(Anand Agricultural university campus)
These cooperatives play important role in milk marketing
in few states in country.
AMUL - Anand milk union ltd.
Amul formed in 1946, is a dairy cooperative
movement in INDIA.
It is a brand name managed by an apex cooperative
organisation, Gujarat Co-operative Milk Marketing
Currently Amul has 2.6 million producer members
with milk collection average of 10.16 million litres
Dr. Verghese Kurien volunteered to help in setting
up a processing plant.
Vidya Dairy(located AAU,campus) is also one of the
milk producing co-operative ,related with the Amul.
The success of Amul was instrumental in launching
the White Revolution that resulted in increased milk
production in India.
IFFCO - Indian Farmers Fertilisers Cooperative
Registered on November 3, 1967 as a Multi-unit Cooperative Society.
Plants owned by IFFCO- Kalol,
Kandla(GUJARAT),Phulpur (Uttar Pradesh), Para
Contributes 20 per cent of country’s total
nitrogenous fertilizer production and 25 percent of
total phosphate fertiliser production.
KRIBHCO - Krishak Bharati Cooperative Limited
Established in 5th February 1982.
Is a premier Cooperative Society for manufacture of fertilizer,
registered under Multi-State Cooperative Societies Act-1985
Was promoted by the Govt. of India, IFFCO, NCDC and
other agricultural Cooperative societies.
KRIBHCO has setup a Fertilizer Complex to manufacture
Urea, Ammonia & Bio-fertilizers at Hazira( Surat, Gujarat).
Objectives To increase the urea installed capacity, maintaining
its market share.
To ensure optimum utilisation of existing plant and
GFCCA - Gujarat Fisheries Central Co-
operative Association Limited
Gujarat Fisheries Central Co-operative Association
Limited (GFCCA) is an apex cooperative body of the
fishermen cooperatives in the State of Gujarat. It
was established in the year 1956 with financial and
administrative support of the Government of
The co-operative banks are small-sized units
which operate both in urban and non-urban centers.
They finance small borrowers in industrial and trade
sectors besides professional and salary classes.
Regulated by the Reserve Bank of India, they are
governed by the Banking Regulations Act 1949 and
banking laws (co-operative societies) act, 1965. The
co-operative banking structure in India is divided
into following 5 categories:
SCB – State Cooperative Bank
DCCB – District cooperative central bank
PACS – Primary Agricultural Cooperative credit
CLDB – Central Land Development Bank
PLDB – Primary Land Development Bank
TRIFED - Tribal cooperative marketing
It was established in 1987 to develop the system of
marketing of forest produced by tribals in the
TRIFED arranges marketing & export of minor
forests products produced by the tribals in the tribal
dominated areas & protects the tribals from
FSS - Farmers service society
Initially covers 8-10 villages .
It is a source of finance.
It also provides Subsidies to poor farmers for
purchase of inputs.
NAFED - The National Agricultural Cooperative
Marketing Federation of India.
It was established in October, 1958
It deals in procurement, processing, distribution,
export & import of selected agricultural
It is also the nodal agency for undertaking price
support operations for pulses & oilseeds and market
intervention operation for other agricultural
The head office of NAFED is in Delhi & its branch
offices are located at Mumbai, Kolkata & Chennai.
Ownership and Democratic Control
Increased Farm Income
Quality of Supplies and Products
Improved Farm Management
Local Leadership Development
Added Community Income
New Products and Processes
Lack of awareness
Lack of quality management,
Over-dependence on government,
Decisions by Large Numbers
Agribusiness cooperatives are playing a big role in growth of
agribusiness sector in India. Agribusiness is affected by a
multitude of factors including institutions and organisations.
Cooperatives are considered an important instrument of
agribusiness development in developing countries including