Cooperative societies are autonomous associations that are voluntarily owned and controlled by their members to achieve mutual social, economic, and cultural benefits. They originated in India to help farmers pool resources for credit, procurement of supplies, and marketing of agricultural produce. Key principles include voluntary membership, democratic control by members, and concern for the community. While cooperatives provide benefits like promotion of savings and self-help, they face issues such as dormant membership, lack of participation in management, and political interference. Programs by organizations like NAFED and NCDC aim to support India's cooperative movement.

1. Basic Principles and
Highlights of Issues in
Cooperative Societies

2. What is a Co-operative Society?
As the name suggests, it is a business
venture which runs on the co-
operation of and the ownership by its
customers who re-invest in the
community it served.
An autonomous association of persons
voluntarily cooperating for mutual
social, economic and cultural benefits

3. Evolution of Cooperative Movement
• The cooperative movement in India owes its origin to
agriculture and allied sectors.
• It was an attractive mechanism for pooling the meagre
resources for solving common problems relating to
credit, supplies of inputs and marketing of agricultural
produce
• In 1904 the government enacted Cooperative Credit Societies
Act, 1904 a more comprehensive legislation called the
Cooperative Societies Act was enacted.

4. Contd..
• Under the Montague-Chelmsford Reforms of 1919and under
the government of India act, 1935, cooperatives were treated
as a provincial subject. The provinces were authorised to
make their own cooperative laws.
• After India attained Independence in
August, 1947, cooperatives assumed a great significance in
poverty removal and faster socio-economic growth. With the
advent of the planning process, cooperatives became an
integral part of the Five Year Plans.
• The item "Cooperative Societies" is a State Subject under entry
No.32 of the State List of the Constitution of India.

5. Contd..
Micro finance:
As a way to help cooperatives and individual
businessmen to grow and prosper their
business, making the community financially
self-reliant simultaneously, Micro Finance
came up as a boon for both society and banks
to leverage on the power of cooperatives in
impacting the society.

8. VIDEO

9. Basic Principles
• Voluntary and open membership
• Democratic Member Control
• Member Economic Participation
• Autonomy and Independence
• Education, Training and Information
• Co-operation among Co-operatives
• Concern for Community

10. Laws governing Cooperatives
 As per the preamble act, the cooperative
society act facilitates the formation of
cooperatives for the promotion of thrift and
self help and for the person with limited
means.
 Therefore, cooperative societies can be
estimated for the purpose of
credit, production or distribution.

11. Laws governing Cooperatives
 Agricultural credit societies must be with
unlimited liability
 Unlimited societies, however, are not the best
form of cooperation for agricultural
commodities.
 A society can be formed with at least 10
members, age above 18, all the members
residing in same town,same tribe, class, or
occupation unless registrar directs otherwise.

12. Laws governing Cooperatives
A registered society is a corporate body with
perpetual succession and common goal.it can
hold properties, enter into contracts,defend suits
and other legal proceedings and to do all things
necessary for the purpose of its constitution.
 Each society is managed by a committee-
committee means the governing body of a
registered society to whom the management of
its affair is entrusted.

13. Advantages
 Promotion of Savings
 Self-Help
 Mutual-Aid
 Overcoming the constraints of agricultural
development
 Creating conducive environment for small
and cottage industries

14. Advantages
 Soften class conflicts and reduce social
cleavages
 Reduce the bureaucratic evils and follies of
political faction.

15. Issues faced by Cooperative
Societies
• Dormant membership
• Lack of active participation of members in
the management of cooperatives
• Over-dues in cooperative credit institutions
• Lack of mobilization of internal resources
and over dependence on government
assistance
• Political interference and over politicization
hampers their growth.

16. Contd..
• predominance of vested interest of a
particular person or a class for whom such a
cooperatives were formed.

17. Setbacks of Cooperative Societies
 Poor infrastructure
 Lack of awareness
 Lack of quality management
 Neglect of professionalism
 Restricted coverage
 Over-dependence on government
 Lack of strong human resources policy
 Non-conduct of elections

18. Programmes in India
National Agricultural Cooperative Marketing
Federation of India Ltd. (NAFED)
National Cooperative Union of India (NCUI)
National Consumer Cooperative Federation (NCCF)
National Cooperative Development Cooperation
(NCDC)
National Labour Cooperative Federation (NLCF)
NDDB, IFFCO

19. Contributors
Kezia
Mehul
Kadambari

20. References
• http://www.ncui.coop/welcome.html
• Research paper by Miss Banishree Das –
Problems and Prospects of the Cooperative
Movement in India
• Evolution of Cooperatives in India –
Government of India

21. THANK YOU !