introduction to cooperatives(without video)

8/6/2019 Introduction to Cooperatives(Without Video)

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Rucha Puntambekar


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An association of persons usually of limited

means, who have voluntarily joined together,

to achieve a common end, through theformation of a democratically controlled

business organisation, making equitable

contribution to the capital required andaccepting a fair share of the risks and thebenefits of the undertaking.


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Association of persons

Limited means

VoluntaryAssociation Common economic end

Democratic Control

Members contribution to capital equitably Acceptance of fair share of benefits and risks


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Housing Co-operatives

Building Co-operatives

Retailers Co-operative Worker Co-operative

Farmers Co-operative

Banking Co-operative Consumers Co-operative


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CompaniesAmendmentAct 2000 made itpossible to create co-operatives as company

Objectives: Production, Processing ,

manufacture, Sales of primary produce Members equity is not publicly traded but canbe transferred with the permission of the Boardof Directors

Producer Companies are not vulnerable to takeover by MNCs and other indigenous companies.

Existing Co-operatives can be converted intoproducer company and reconverted into co-operative society, if the majority so desire.


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Open Membership VoluntaryAssociation State Control Sources of Finance Democratic Management Service Motive Separate Legal Entity

Distribution of Surplus Self-help through mutual co-operation Enterprise but not a charitable association Members place on basis of equality


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England and Germany: Birthplace of co-

operative movement

1844: Group of weavers set up a society withcapital of 28

Influenced by Robert Owen, Dr. William Kingand William Thompson

Co-operative Store of consumers

1988: 2.5 million profit and 1123 stores


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To take up production and distribution of

commodities required by the members

To make housing amenities and clothingrequirements available to its members and

improve standard of living

To arrange for education of its members

To manufacture articles to generateemployment for its members


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F.W. Raiffeisen (1818-1888) Poor Peoples

Committee for Farmers

Each for all and all for each

Franz Schulze (1809-1883) : Society for ReliefSickness to cater to requirements of traders,

artisans and urban middle class

To run bank as business organisation


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Moral development

Mutual support

Material advantage United action and fostering of self-reliance

Effective realization of higher and betterstandard of life


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Nicholson introduced Raifferson Model ofGermanAgricultural Credit Co-operatives

Co-operative SocietyAct 1904

Formation ofA

gricultural Credit Co-operatives Direct Legal Entity National Co-operative Union of India (1929) National Co-operative Development and

Warehousing Board (1956) National Co-operative Development Co-

operation (1963) NCDCAct (1962)


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1965-66: 35 thousand

2002-03: 545 thousand

46%Agriculture Credit Disbursement 36% Fertilizer Distribution

59% Sugar Production

32% Wheat Procurement

65% Storage Facility


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Fund Mobilization

State Government as venture capitalist

Linkages to Panchayats, Nagar Palikas, Self-Help Groups, Banks and other financial

institutions for communication and financeobjective

introduction to cooperatives(without video)

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