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Indian Cooperative Movement
and Indian Agriculture
Dr A.K. Asthana
Director
Institute of Cooperative Management
( Ministry of Agriculture, Govt of India)
dearasthana@gmail.com
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.
• 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
• 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.
• 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)
• 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)
• Village coverage - 98%
• House hold coverage -
• 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.
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.
•
•
•
•
•
•
•

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%
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.
• Cooperative has significant contribution
in the following areas
1. Agriculture Credit
2. Agriculture Distribution
3. Agriculture Marketing
4. Agriculture Service
5. Agriculture based Industry
6. Allied agriculture sector.
• 1. Agriculture Credit:
• To increase the agriculture production, credit
is first requirment.
• Farmers are provided agriculture credit
through cooperative institution at their door
step.
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)
•
•
•
•
•

Total membership of PACS 122 million
Total loan Advance
ST loan 82%
MT loan 17%
Loan advance for agriculture purpose 50%
• 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.
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
• 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.
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)
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
• 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.
• 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
•
•
•
•

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.
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)
•
•
•
•

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
•
• 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
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.
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
• 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.
• 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
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
• 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.
• 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.
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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Indian coopertive movement and agriculture

  • 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. 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. • 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. • 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. • 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. • 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. • Village coverage - 98% • House hold coverage -
  • 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. 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. • • • • • • • 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. 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. • Cooperative has significant contribution in the following areas 1. Agriculture Credit 2. Agriculture Distribution 3. Agriculture Marketing
  • 13. 4. Agriculture Service 5. Agriculture based Industry 6. Allied agriculture sector.
  • 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. 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. • • • • • Total membership of PACS 122 million Total loan Advance ST loan 82% MT loan 17% Loan advance for agriculture purpose 50%
  • 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. 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. • 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. 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. 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. • 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. • 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. • • • • 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. 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. • • • • 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. • 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. 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. 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. • 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. • 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. 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. • 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. • 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. 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