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COOPERATIVE
S TODAY:
CHALLENGES
AND
OPPORTUNITIE
S – INDIAN
PERSPECTIVE
Dr. S. SURESH BABU
M.A., M.Com.,M.Phil., DLL., Ph.D
Assistant Professor & Head
Department of Cooperation
Government Arts College (Autonomous)
Salem – 636 007.
INTRODUCTION
 The cooperatives in India are completing its
115 years of selfless service to all sections of
the people.
 The cooperative sector in India is the largest
in the world and it plays a pivotal role in
employment generation, poverty alleviation
and food security.
 Indian cooperative movement is one of the
biggest movement in the world covering 100
per cent geographical area and it was started
essentially to solve the problems in relation to
agricultural debt.
 Since then the movement slowly and strongly
entered into several sectors like credit,
banking, marketing, processing, housing,
irrigation, services and other sectors.
CHALLENGES
 Lack of democratic spirit
 Abusing power by the leadership
 Government interference
 Outmoded practices
 Lack of awareness
 Limited coverage
 The Free rider problem
General and other Challenges
 Stiff competition
 Limited access to international markets
 Limited scale of operations
 Absence of loyalty of members
 Identity crisis
General and other Challenges
 Highly damaging management style
 Out dated technology
 Non-participation of members
 Ineffective operating methods
 Out dated monitoring mechanism
General and other Challenges
 Over-dependence on government
 Breakdown of linkages
 Loss of organisational focus
 Governance deficiency
 Irrelevant organisational structure
OPPORTUNITIES
 Organising Multi-Purpose Cooperatives
 Formation of more New Generation
Cooperatives
 Formation of New Generation (closed
membership) cooperatives
 Implementing strong Vertical and Horizontal
Integration
 Creating Hybrid Structures
OPPORTUNITIES
 Joint ventures
 Corporate cooperatives
 Engaged in extension services
 Cooperative producer companies
 Merger and Acquisitions
 Innovative cooperatives
CONCLUSION
 Cooperatives as business organisations with
strong social content have always been
accepted by one and all.
 No political or social system governing
individuals within all types of borders have
shunned the cooperative philosophy and
ventures. It continues to survive and thrive in
all times.

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Cooperatives today

  • 1. COOPERATIVE S TODAY: CHALLENGES AND OPPORTUNITIE S – INDIAN PERSPECTIVE Dr. S. SURESH BABU M.A., M.Com.,M.Phil., DLL., Ph.D Assistant Professor & Head Department of Cooperation Government Arts College (Autonomous) Salem – 636 007.
  • 2. INTRODUCTION  The cooperatives in India are completing its 115 years of selfless service to all sections of the people.  The cooperative sector in India is the largest in the world and it plays a pivotal role in employment generation, poverty alleviation and food security.
  • 3.  Indian cooperative movement is one of the biggest movement in the world covering 100 per cent geographical area and it was started essentially to solve the problems in relation to agricultural debt.  Since then the movement slowly and strongly entered into several sectors like credit, banking, marketing, processing, housing, irrigation, services and other sectors.
  • 4. CHALLENGES  Lack of democratic spirit  Abusing power by the leadership  Government interference  Outmoded practices  Lack of awareness  Limited coverage  The Free rider problem
  • 5. General and other Challenges  Stiff competition  Limited access to international markets  Limited scale of operations  Absence of loyalty of members  Identity crisis
  • 6. General and other Challenges  Highly damaging management style  Out dated technology  Non-participation of members  Ineffective operating methods  Out dated monitoring mechanism
  • 7. General and other Challenges  Over-dependence on government  Breakdown of linkages  Loss of organisational focus  Governance deficiency  Irrelevant organisational structure
  • 8. OPPORTUNITIES  Organising Multi-Purpose Cooperatives  Formation of more New Generation Cooperatives  Formation of New Generation (closed membership) cooperatives  Implementing strong Vertical and Horizontal Integration  Creating Hybrid Structures
  • 9. OPPORTUNITIES  Joint ventures  Corporate cooperatives  Engaged in extension services  Cooperative producer companies  Merger and Acquisitions  Innovative cooperatives
  • 10. CONCLUSION  Cooperatives as business organisations with strong social content have always been accepted by one and all.  No political or social system governing individuals within all types of borders have shunned the cooperative philosophy and ventures. It continues to survive and thrive in all times.