Indian coopertive movement and agriculture

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This slide give basic idea about evolution of Indian cooperative movement and how it is supporting agriculture and allied agriculture sector.

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Indian coopertive movement and agriculture

  1. 1. Indian Cooperative Movement and Indian Agriculture Dr A.K. Asthana Director Institute of Cooperative Management ( Ministry of Agriculture, Govt of India) dearasthana@gmail.com
  2. 2. Glance on Development of Cooperative in India • Cooperative movement in India is more than 100 years old. • Cooperative movement in India started with enactment of “ The Cooperative Credit Society Act 1904” • Main objective was to make farmers free from the clutches of money lenders.
  3. 3. • At that time money lenders used to charge 37% to 76% as interest on money lended to farmers. • In 1892 Sir Federic Nicholson was directed to study problem of farmers and give suggestions. • He submitted the reprot and suggested to
  4. 4. • Establish agriculture credit bank on line of one established by Mr Raiffeisen in Germany. • In 1901 then government formed a committee to consider establishment of such bank. • In 1904 Act was passed and cooperative was given legal status.
  5. 5. • This was bigning of agriculture credit cooperative society in India. • In 1912 another Act was passed for setting up non-agriculture credit cooperative society in India. That created marketing cooperative society. • In 1919 cooperative was made state ( at that time provincial subject)
  6. 6. • Cooperative movement in India is one of the largest movement in World. • 545 thousand cooperatives • Membership range to 236 million • Working capital of Rs 34,00,555 million( credit and non credit cooperative society)
  7. 7. • Village coverage - 98% • House hold coverage -
  8. 8. • Cooperative movement has made tremendous progress in every aspect of the Indian economy. • Initially cooperative movement was started with agriculture credit only. • But now it has entered into all field of economic activities.
  9. 9. Role of Cooperative in Indian Economy • In India there is private sector, government sector and cooperative sector contributing to the economy of nation. • 97% villages are covered by cooperatives • 75% rural house hold are covered by coop. • Agriculture coop. disbursed 21% of loan to farmers.
  10. 10. • • • • • • • Share of sugar production in coop is 46% Share of handloom coop. is 54% Rubber procurement and marketing 15% Ice crème manufacturing 45% Oil Marketed ( Branded) 49% Direct employment generation 1.22 million Self employment generated for person 15.47%
  11. 11. Indian Cooperative and Agriculture • In the Indian context, it is pertinent to mention that a large segment of the population (65%) continues to depend on agriculture and agriculture related sectors of the economy. • Still after 100 years of initiation of cooperative movement, the significance of cooperative of agriculture and agriculturist has not diminished.
  12. 12. • Cooperative has significant contribution in the following areas 1. Agriculture Credit 2. Agriculture Distribution 3. Agriculture Marketing
  13. 13. 4. Agriculture Service 5. Agriculture based Industry 6. Allied agriculture sector.
  14. 14. • 1. Agriculture Credit: • To increase the agriculture production, credit is first requirment. • Farmers are provided agriculture credit through cooperative institution at their door step.
  15. 15. Institutional Arrangement for Ag. Cre. STATE LEVEL COOPERATIVE BANK Fed. Of DCCBs 31 State Cooperative Bank DISTRICT LEVEL CENTRAL COOPERATIVE BANK LTD Federation of PACS 371 DCCBs Primary Agriculture Credit Cooperative Society Farmers are members for disbursement of agi loan ( 93413)
  16. 16. • • • • • Total membership of PACS 122 million Total loan Advance ST loan 82% MT loan 17% Loan advance for agriculture purpose 50%
  17. 17. • Agriculture Distribution • Apart from supplying credit , cooperative institution in India also supply agriculture input like seed, fertiliser, pesticide, insecticide to the farmers again at door step. • Cooperative ensure quality product at reasonable price to farmers. Farmers take advantage of bargain of bulk purchase.
  18. 18. Institutional Arrangement for Ag. dis. STATE AGRICULTURE COOPERATIVE MARKETING FEDERATION 28 Apex fed. Of DACM DISTRICT AGRICULTURE COOP MARKETING FEDERATION Fed of AMCS 378 Primary Agriculture Marketing Cooperative Society Primary Mar Soc 7202
  19. 19. • 3. Agriculture Marketing • Cooperative institution in India also give marketing support to the farmers. • The produce of farmers are pooled at Village level and market linkage is provided through federation. • Marketing Cooperative society also provide warehousing facility and transportation.
  20. 20. Institutional Arrangement for Ag. Mar. STATE LEVEL COOPERATIVE MARKETING FEDERATION Apex Fed. Distt. Mar. Coop. Fed 28 DISTRICT MARKETING COOP. SOCIETY LTD Federation of PMCS 378 Primary Agriculture Marketing Cooperative Society Farmers are members Pooing and Selling of Agri Produce ( 7202)
  21. 21. 4. Agriculture Service: • Some times small and marginal farmers can not buy costly agriculture implements like tractor, triller, theser etc. • Service Cooperative society provide these implements on hire basis • Irrigation coop Soceity
  22. 22. • 5. Agriculture Industry • Cooperative Institute also support a number of agro based industry where farmers are directly or indirectly being benefitted. • These industry provide direct employment, income generation employment and empowerment to womenfolk.
  23. 23. • 5a. Sugar Cooperative • A very prominent agro based industry in India 9 state federation , • 324 Sugar cooperative factories in India with Installed Capacity of 10 Million tones • Sugar factory provide credit, input, and consultancy for member farmers • Purchase sugar can under buying agreement
  24. 24. • • • • 5b. Dairy Cooperative One of the largest and successful cooperative Members 14.47 million Dairy cooperative provide additional income to the farmers • Employment generation for women 5 million • India has given AMUL MODEL to world for dairy development.
  25. 25. AMUL MODEL STATE MILK MARKETING FEDERATION Federation of Distt Milk Union 21 DISTRICT Milk Processing Cooperative Union LTD Federation of PMCS Primary Milk Cooperative Society 198 ( 1.22 Million)
  26. 26. • • • • No. of Producer Members 3.18 Million No. of Village Societies16,914 Milk Collection (Total - 2012-13)4.66 billion litres Members17 District Cooperative Milk Producers' Unions • GCMMF Branding and sale of AMUL • Sales Turnover -(2012-13)Rs. 13735 Crores •
  27. 27. • 5c. Fertiliser Cooperatives • In India cooperative institute has entered into production of fertiliser also because at peak time farmers felt shortage of it. • IFFCO AND KRIBHCO
  28. 28. IFFCO • Indian Farmers Fertilizer Cooperative Limited, also known as IFFCO, is the world's largest fertilizer cooperative federation based in India. IFFCO has 40,000 member cooperatives. • IFFCO was established as the farmers’ own initiative in Cooperative Sector on 3rd Nov. 1967 with the proposed plants at Kalol & Kandla.
  29. 29. KRIBHCO • KRIBHCO is primarily a fertilizer production cooperative having production unit at Hazira (Surat) in the state of Gujarat. • It is urea company. • Oman India Fertilizer Complex (OMIFCO), is the first overseas JV project of the company in which KRIBHCO holds 25 % equity
  30. 30. • At present KRIBHCO is marketing about 38.00 Lakhs MT of urea annually which is about 14% of the total urea consumption of the country.
  31. 31. • The major co-operative processing units in India are: • 1. Co-operative oil seeds processing units ( 142) • 2. Fruits and vegetable co-operatives( 54) • 3. Co-operative cold storage • 4. Co-operative processing of plantation crops • 5. Rice mills co-operatives ( 702) • 6. Cotton processing co-operatives • 7. Co-operative spinning mills • 8. Co-operative jute mills
  32. 32. Select feature of Indian Cooperative • Two type of governance found in India • Cooperative movement in state Like Gujarat and Maharastra, movement is led by members. • In state like TN, Kerala movement is led by state government machiery
  33. 33. • Cooperative was state subject so every state frame rule according to its situation • Not uniformity in administration and governance of cooperative in India • WTO has impact on some of cooperative like sugar cooperative, milk cooperative etc.
  34. 34. • To tackle problem major cooperative reforms were need of day. • In 2011, 97 constitutional amendment was passed and lots of discrepancy were removed. • Now cooperative has become fundamental right empowering citizen to form cooperative as it is fundamental right.
  35. 35. Future of Cooperative • Cooperative is diversifying in new area. • Cooperative in entering into power generation, real estate management, insurance sector and health care sector, tele communication. • From India AMUL , SEWA are internationally acclaimed cooperative society. • Dr Vergees Kurean of AMUL and Ela Bhatt has international name in Cooperative

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