The document discusses the history and evolution of the cooperative movement in India from its initiation in 1904 up until recent times. It outlines the key principles of cooperation, the various committees and acts that helped develop the movement, and the multi-tiered structure of agricultural cooperative credit societies and marketing federations that were established at the national, state, district and local levels over time. The cooperative model has aimed to provide farmers with access to credit, inputs and marketing while promoting principles of self-help and mutual assistance.

1.  Cooperation generally means working
together to achieve a common goal
 “cooperation is a form of organization in
which persons voluntarily associate together
on the basis of equality for the promotion of
their economic interests.”
 Motto of cooperation “each for all and all for
each”

2.  Principle of open and voluntary association
 Principle of service
 Principle of democratic organization
 Principle of selphelp and mutual help
 Principle of distribution of profits and surplus
 Principle of political and religious neutrality
 Principle of education
 Principle of thrift
 Principle of publicity
 Principle of honorary service

3.  1. Initiation stage (1904-1911)
 Dominance of non- institutional agencies debts
 revolting against money lenders (Poona and Ahmadabad)
 Deccan Agriculture Relief Act (1879)
 Land Improvement Loan Act (1883)
 Agricultural loan act (1884)
 Madras (Fed rick Nicholson) study village banks--
cooperative lines– Germany
 Slogan “Find Raiffeissen”
 Indian famine commission (1901)
 Sir Edward law (credit societies)
 Cooperative credit societies act (1904)
 Rural –urban classification (4/5th of farmers)
 Control -societies
 Real (immovable security)


4.  Rectified – cooperative societies act 1912
 Legal protection
 New focus
 Registration of all types of cooperative
societies
 1914, Sir Edward Mac lagan- performance of
societies
 Observations a. illiteracy b. funds c. sanction
of loans 3. repayment of loans
 Effective measures a. awareness b. strictly
confined c. honesty d. scrutinized e.
speculative purpose f. thrift g. strictness h.
savings i. punctual payment.

5.  Montague – Chelmsford act (1919)
 Further impetus to the movement
 Land mortgage banks “Punjab” first madras….
 Indian central bank enquiry committee (1931)
 Madras cooperative societies act (1932)
 Madras land Mortgage act (1934)
 Growth of cooperative movement.

6.  Economic depression (early 30s)
 Vijayaraghava charya committee , madras
 Rehabilitation committee , Travancore and Mysore
Kale committee , Gwalior
Mehta and Bhansali committee , Bombay
Wace committee , Punjab
Second world war (rise in prices)
Recovery of dues
Prof. D.R.Gadgil – argil. Finance sub-committee –
appointed – govt. of India – (1944) – recommended
Cooperative planning committee ( 1945)
R.G. Saraiya – limited progress of cooperative –
laissez faire policy – illiteracy of people.

7.  (1959)- Shri V.L.Mehta- viability of
cooperatives
 Membership (farmers only)
 Distance (3to 4 miles)
 Shri B. P. Patel (1961-1962)
 Cooperatives – agril. Loans – agril. operations
and land development.
 Grass root level (supervision) (PACS)
 Responsibility – Shri V. L. Mehta – district
coop. banks (DCCB) – Supervision (PACS)

8.  Planning commission, march (1950)
 First five year plan (1951)
 Objectives a. rural development b. credit system b. cooperatives
c. training
 All India rural credit survey committee (1951)- RBI- Shri A. D.
Gorwala- cooperative credit – unevenly distributed – lent by –
large cultivators.
 Weakest link PACS
 Good cooperation or sound credit
“Cooperation has failed in India but must succeed “
 Integrated scheme- salient features- report
 State partnership, coordination, development, training.
 (1952) – Bharat sevak samaj and national advisory committee
 Public cooperation
 All India rural credit survey committee (1954)
 National cooperative development and warehousing board
(1956)
 SECOND FIVE YEAR PLAN ………. Was industry based.

9.  National cooperative development
corporation (1963)
 National Federation of cooperative of Sugar
factories (1961-66)
 AIRCRC- Report – B. Venkatappaiah- (1969)-
setting –(SFDA)
 Rural Electrification corporation
 Greater flexibility
 Economic activities
 Strengthening dairy cooperatives
 Transport cooperatives
 (1967) (VAMNICON) –PONNA- establishment-

10.  Rehabilitation and reorganization of DCCB’S
 Smooth flow of coop. credit orgn’s.
 IFFICO- Establishment – Kandla
 New fertilizers project (vista)

11.  Success of fertilizer project
 SIXTH FIVE YEAR PLAN
 NABARD – Establishment
 Strengthen economic activities ,dairy
cooperatives, regional coordination.
 SEVENTH FIVE YEAR PLAN
 Recovery camps, retail sale of fertilizers
 Strengthen – national state consumer
federation
 Introduction- (SINGLE WINDOW SYSTEM) -
credit

12.  Emphasized of ANAND PATTERN – dairy, milk
proccessing
 Cooperatives – only alternatives – providing
loans –rural people- (AIRCARD) Report
 Substantial help by RBI – loan policy
 Development of weaker sections through
cooperative societies
 Structure change in cooperative credit
 Unitary structure- Bihar,U.P.,M.S.,J&K

13. MICROFINANCE CREDIT STRUCTRE
 TENTH FIVE YEAR PLAN
 Removal regional differences between
cooperative credit organizations
 ELEVENTH FIVE YEAR PLAN
 Individual bank – 2000 population area-
cooperative credit basis.

14.  ST and MT loans(three tier) LT loans (two tier)
 State cooperative banks Central land development
 (SCCB) bank (CLDB)
 (at state level) ( at state level)

 District cooperative banks Primary land development
(DCCB) Banks (PLDB)
(at district level) (at taluka level)
 Primary agricultural cooperative
 credit societies (PACS)
 (at village level)

15.  State level
 DCCB’s & PACCS Members
 Supervise, mobilize& deploy
 Link between RBI & PACS
 FUNCTIONS
 Formulating development policies
 Uniform credit policies
 Banker’s bank to DCCB
 Grant Subsidies
 Similar to CB’s (banking operations)

16.  Cooperative credit societies act (1904)
 Link between SCB’s & PACS
 Meet credit requirement of PACS
 Undertake banking business
(cheques,drafts,bills,credit disbursement)
 Confined to Taluka level
 Membership a. societies (farming, consumers)
 Individuals c. working in that area.
 FUNCTIONS
 Supreme & inspect (PACS)
 Guide (PACS) leadership
 Non-credit activities (seeds,manure,
fertilizers,sugar,kerosene)
 Control and accept deposits

17.  RAIFFESON MODEL- suggestions
 ( limited liability , limited area operation ,
honorary management, voluntary participation of
villages)
 Smooth functioning of villages (above
requirements)
 Short-term & medium term loans disursbesment
 Agril. input supply & other essential commodities
 Formulating & implementing agril. Development
plans
 production-finance-marketing cycle fulfillment

18.  Long term finance to PLDB’s & its branches
 Members a. PLDB’s b. enterprenurers c. CLDB’s
branches
 NABARD & LIC (debenture) supply
 NABARD (Refinancing agency) – CLDB’s
 Link between NABARD & govt. (transactions of
 Of long term loans)
 Supervise , inspect, guide PLDB’s
 Floats debenture – raising funds
 Spirit & practice of thrift- (stimulate habit of
savings & capital formation)

19.  Functions
 Give loans to PLDB’s for…..
 Debt clearance, purchase land, land
development, machinery, minor irrigations.

20.  Land mortgage bank on the lines of
cooperative (Punjab) – 1920
 Progress in post independence (madras,
Mysore, Assam, Bengal)
 Only large farmers benefited.
 Supported by RBI, SBI, & GOVT., ARC, LIC
 Reoriented agril. Policies for small and
marginal farmers
 1974- (Land Mortgage Bank )renamed as-
(Land development bank)
 Taluka level (working)

21.  FUNCTIONS
 Long term finance
 Development, production, productivity
 Loan for minor irrigations
 Redemption of old debts
 Purchasing tractors & machinery
 Finance for construction of farm structure
 Savings (encourage)

22.  Credit (three tier structure) Marketing (two tier st.)
 (ST,MT, and LT)
 The A.P. state Cooperative bank The A.P. state
Cooperative
 For Agriculture and Rural Marketing Federation
Ltd.
 Development(APCOBARD) (MARKFED)
 District Cooperative Bank District Cooperative
 For Agriculture and Rural Marketing Societies
 Development (DISCOBARD) (DCMS)
 Primary Agricultural Cooperative
 Credit Societies (PACS)