in Rural areas
Simran Sakshi & Akriti Raj
What is a co-operative organization?
Co-operative organizations in rural areas
Objectives of rural co-operative organizations
Some rural co-operative organizations
What is a co-operative organization?
According to Indian Cooperative
Societies Act, 1912,
“A cooperative society has its
objective, the promotion of
economic interests of its members
in accordance with cooperative
Co-operative organizations in rural areas
India is an agrarian society and half of its population resides in villages.
Rural sector is the major contributor to the overall GDP of the nation and hence lack
of development in villages means lack of development in India.
Cooperatives cover more than 97%of Indian villages and share a major credit in the
growth of rural sector, thus contributing to the overall economy of India.
Government each year spends lakhs to crores of rupees on rural development. But
co-operatives working in rural areas are playing noteworthy role in this.
After independence, role of cooperative societies grew to encompass socio-economic
development and eradication of poverty in rural India. It became an integral part of
five year plan and a fundamental part of our economy.
Objectives of rural co-operative
To get the poor and indebted farmers out of poverty and out from the clutches of money lenders
To provide top quality fertilizers, seeds, insecticides, pesticides etc. at reasonable price to
Farmers also get marketing, warehousing facility and transportation support
It helps in the socio-economic development of the rural areas in our country
It provides agricultural credit
To improve the standards of living and maintain equity
Shri Mahila Griha Udyog Lijjat Papad
Objective: Empowerment of women by providing employment
Headquarters: Mumbai (81 branches and 27 divisions all over India)
Annual turnover: Rs 6.50 billion (2010)
It provides employment to around 42,000 people.
It makes efforts to promote literacy and computer education to member-
Orientation courses in typing, cooking, sewing, knitting and toy making as well
as other courses like child welfare, first aid and hygiene were also taught.
It contributes in social service activities such as -
distributing nutritious food for poor children
donating money for conducting community marriage
instituting prize-money for spread of primary education
undertaking blood donation drive
Organizing health camps, plantation drives and making donations to Government bodies
After the 2001 Gujarat earthquake, all the branches of Lijjat gave a total donation of
more than ₹ 4.8 million.
Products manufactured by Lijjat:
Jan Vikas multi-purpose co-operative
Aim : To uplift agricultural standards in seven states i.e., Uttar Pradesh,
Uttarakhand, Bihar, Jharkhand, Rajasthan, Madhya Pradesh and Maharashtra
To provide support to its members through latest information and techniques
To undertake purchase, sale and supply of agricultural products, marketing and processing
requisites of agricultural produce
To facilitate, co-ordinate, promotes and engage in Animal Husbandry and Sericulture
To provide seeds and grains to the members for their land holdings at cheaper rates
To provide specialized training, education and data based information and promote harmonious
relations amongst members
It deals with secured loan proposal and
It caters to the needs of small industries,
startup businesses and new entrepreneurs
as well as helps all classes of society in
building their own.
Has a vast branch network spread all over the states of Maharashtra, Goa and Karnataka
in certain trading business centers to enable resource mobilization at low cost
Advanced technological implementation
Well trained personnel in key fields to handle specialized products
To build business volume through penetration of other segments with innovative products
To use technology for better customer comfort and satisfaction, coupled with reduction
in operating expenses
To provide most efficient and speedy customer service
Increased emphasis on fee and commission based products
Key Charter of Duties of the Society:
Accepting deposits for the purpose of lending or investment of deposits
from the public, repayable on demand or otherwise and withdrawn by
withdrawal slips or otherwise
Marketing of sale & distribution of Insurance products of leading insurance
After receiving the status of Multipurpose, the Society has diversified into
Real Estate Business, MSEB Bill collection, Healthcare and many more
They have launched a new venture Quest Tours in travel domain to cater
to all the travel needs
Fixed Deposit Kalpavruksh MIS Recurring Deposit
Madhu Sanchay Daily
Loan Against Deposit Housing Loan Hypothecation Loan Mortgage Loan
Industrial Loan Personal Loan Dam Duppat Yojana
Tribal Co-operative Marketing Development
Federation of India
India is a home to one hundred million tribal people who live by farming
and a large number of specialized manual industries.
TRIFED was formed in 1987 for socio economic development of tribal
population in the country.
It involves marketing development of the tribal products i.e. forest
produce and handicrafts, handloom and food products.
It comprises of developing a marketing system and export promotion.
It also works to protect tribals from exploitation.
• Providing pools of information.
• For systematic operations.Knowledge
• Formation of SHGs.
• Training for tasks.Capacity Building
• Exploring international markets.
• Creating a brand.Marketing
Minor Forest Produce Development
It includes all non-timber forest produce of plant origin i.e. bamboo, canes, fodder,
leaves, gums, waxes, dyes, resins and many forms of food such as nuts, wild fruits,
Honey, Lac, Tusser etc.
It faces problems such as perishable nature of the produce, lack of holding capacity,
lack of marketing infrastructure, exploitation by middlemen, lack of government
intervention at the required time and scale, volatile nature of markets etc.
Govt. of India has decided to introduce Minimum Support Price (MSP) in order to
provide them with fair price for the MFPs they collect.
TRIFED has organized intensive training on sustainable collection, cultivation,
primary processing, value addition and marketing of Honey, Gum Karaya, Mahua
flower, Lac, Donna Pattal making, Hill Grass, etc.
It involves exploring marketing possibilities for marketing of tribal products on
a sustainable basis, creating brand and providing other services.
TRIFED sources products like handicraft, handloom and natural & food products
from individual tribal artisans, tribal SHGs, Organisations/ Agencies/NGOs
working with tribals.
TRIFED has been marketing tribal products through its Retail Outlets located
across country and also through exhibitions.
It also participates in international exhibitions/trade fairs through Export
Promotion Council for Handicrafts(EPCH) and India Trade Promotion
Organisation(ITPO) in various countries for display and sale of tribal products
sourced from tribal artisans.
• An exhibition of tribal
• National Tribal Craft
Expo to showcase
tribals ethnic craft.
• Participation in
National Agricultural Cooperative Marketing
Federation of India Ltd.(NAFED)
It was established on 2nd October 1958.
It was setup with the object to promote Co-operative marketing
of Agricultural Produce to benefit the farmers.
It undertakes marketing, processing and storage of agricultural,
horticultural and forest produce, distribution of agricultural
machinery, implements and other inputs, import and export
trade, assistance for technical advice in agricultural production.
• Facilitates trading activities of the cooperative institutions in
agricultural and other commodities,
• Sale, purchase, import, export and distribution of agricultural
commodities, horticultural and forest produce.
• Manure, seeds, fertiliser, agricultural implements and machinery,
packing machinery.Agricultural requisites
• It constructs its own godowns and cold storages.
• Undertakes insurance work.
• It undertakes grading, packing and standardisation of agricultural
produce and other articlesGrading
• Consultancy & Market Research for the benefit of the cooperative
National Tree Growers Co-operative
It was created in 1988
It aimed at restoring the ecological security of village communities in
eco-fragile and marginalised zones.
The NTGCF has promoted the organisation and establishment of
village-level Tree Growers Cooperative Societies (TGCS) in six states
of the country, and provided technical and financial support for
regenerating degraded forests, conservation of natural resources
through community protection, and activities related to Joint Forest
Its main objective has been the restoration of the biological
productivity of marginally productive and unproductive degraded
lands by establishing sustainable fuelwood and fodder plantations to
meet the essential needs of the villagers.
Additional produce caters to the urban demand for fuelwood, timber
and tree-based products.
Concurrent objectives include the strengthening of existing village
institutions and empowerment of women.
It assists the villagers in acquiring village wastelands on long leases.
The degraded lands are restored to a productive state through natural
regeneration plantations and soil and water conservation measures.
In some areas, large scale seed sowing of forest trees and shrubs was done.
The villagers are supplied seeds, saplings, cuttings and biofertilisers.
It encourages adoption of energy conserving techniques and devices such as
improved stoves, biogas plants, pressure cookers and solar cookers.
They have also developed facilities for the processing and marketing of wood at
Cooperative and regional levels.
Cooperatives are considered to have immense potential to deliver goods and services in areas where
both the state and the private sector have failed.
Over dependence on government assistance, lack of professional management, bureaucratic control
and interference in the management, lack of resources have proved harmful for the growth of
With the efforts of National Cooperative Union of India the Central Government passed the Multi
State Cooperatives Societies Act and also formulated a national cooperative policy that provides
greater autonomy to cooperatives.
For the success of any developmental effort in the agricultural sector is to synergize with the efforts
in the cooperative sector.
Panchayat Raj institutions and cooperative sector can bring about positive change in the rural areas.