seminar on coopeartive in india

8/9/2019 Seminar on Coopeartive in India

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Cooperatives in India:An overview

Speaker:

Deepak SinghMBA-Agribusiness


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I know of no other instrument so

potentially powerful and full of socialpurpose as the co-operative

Smt. Indira Gandhi

Deepak Singh Cooperatives in India 2


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CO-OPERATION

Derived from Latin word

Co - Together

Operari- Working


It is a sort of association of persons,joined for common purpose which theycan not achieve separately.


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Definition

A co-operative is an autonomous

association of persons united voluntarilyto meet their common economic, social

through a jointly owned anddemocratically controlled enterprise.



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Values

self help,

self responsibility,

democracy, equality and solidarity.



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Principles

Voluntary and open membership.

Democratic member control.

Member economic participation.

Autonomy and independence.

Education, Training and Information.

Co-operation among cooperatives.Concern for community



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The cooperative credit system has the largest

network in the world and cooperatives haveadvanced more credit in the Indian

agricultural sector than commercial banks.

1956- National Cooperative Development &Warehousing Board.

1963-NCDC

1967- VAMNICOM

2002- Multi-State Co-operative Societies

ActDeepak Singh Cooperatives in India 8


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Current status

580,000 cooperatives of all types;

400 million individual members;

375,000 agricultural cooperatives;

280 million farmer-members



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Important Segments of Indian

Cooperatives Cooperative education and training

Agricultural credit cooperatives

Non agricultural credit cooperatives (urban

Cooperative marketing

Tribal cooperatives

Fertilizer cooperatives Consumer cooperatives

Weaver cooperatives



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Contd

Sugar cooperatives

Cooperative spinning mills

Industrial cooperatives (non weavers)

Dairy cooperatives

Fisheries cooperatives

Housing cooperativesLabour cooperatives

Poultry cooperativesDeepak Singh Cooperatives in India 11


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Market Share In fertilizer production and distribution the

Indian Farmers Fertilizer Cooperative (IFFCO)commands over 35 percent of the market.

In h r i n f r h r iv

share of the market is over 58 percent and inthe marketing and distribution of cotton they

have a share of around 60 percent.

The cooperative sector accounts for 55percent of the looms in the hand-weaving

sector.



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Cooperatives process, market and distribute

50 percent of edible oils. Dairy cooperatives (70% milk share)operating

n r h l r hi f h N i n l D ir

Development Board and through 15 statecooperative milk marketing federations has

now become the largest producer of milk in

the world.



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Dairy CooperativesFirst Milk Producers Cooperative Union: Kaira- Gujarat- 1946 Number of Dairy Cooperatives : 121,180 Membership Total (in Million) : 12.95 Women Membership (in Million) : 2.96

(Millions US$) Share Capital : 83

Working Capital : 465 Assets : 413 Turnover (Total) 2004-05 : 1206

Total Milk Procured by Coops (Mill It.) : 7325

Liquid Milk Marketed per day (Mill It.) : 15 Balanced Cattle feed Production : 1.09 million tns

Data Source: NCUI: Indian Co-operative Movement A Profile 2006.



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Sugar CooperativeFirst Cooperative Sugar Factory: Parwara Maharashtra 1948

Number of Cooperative sugar mills : 316 Membership Total (in Million) : 5.14 Growers Membership : 92.5 %

(Millions US$) Share Capital : 716 Turnover (Total) 2004-05 : 285 Total cane crushed (Mill tns.) : 44

Total Sugar Produced (Mill tns.) : 7.8

Data Source: NCUI: Indian Co-operative Movement A Profile 2006.



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National Cooperative Union of

India (NCUI)

Apex body in India which represent all

the segments of Indian CooperativeMovement.

was es a s e n as n aCooperative Institutes Association.

Was rechristened as National

Cooperative Union of India (NCUI) in1961.



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Functions of NCUI Promotion and Strengthening of Cooperative

Movement Cooperative Education and Training

Development of Inter-Cooperative Relations

Collection and Dissemination of Co-operativeinformation

Promotion of International Co-operation and Co-

operative Trade

Voicing of Co-operative Opinion and views

Provides 100% grant in aid for Intensification of co-

operative education in co-operatively under developed

states.Deepak Singh Cooperatives in India 18


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Cooperative Credit

Organization



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State Cooperative Bank(SCB)Members : DCCB & PACS

Link between RBI & PACS

Help State Govt. in formulating

Development plans regard to co-op.Bankers to DCCB, supervise, control &

guide

Normal banking operations



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District Central Cooperative

Bank(DCCB)Members : individuals & societies

Guide, Supervise & inspect PACS

Non credit activities : supply of seeds,

fertilizers & other consumer goods.Provide requisite funds to the societies

Accept deposit both from public &societies.



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Primary Agricultural

Cooperative Societies(PACS)Minimum number required is 11;

Members buy shares;

PACS raise money from district banks

for lending to members for purchaseof farm inputs fertilizer, seeds, farmchemicals, farm implements, land

improvement, agro-processing,warehousing etc.



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Farmer Service Society (FSS)FSS introduced in the country in 1973

on recommendation of Nationalcommission on agriculture (NCA).

commerc a an or cen racooperative bank can launch a FSS.

A FSS initially covers around 8 to 10

villages and then subsequently thewhole block.



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32 State Cooperative Banks;

850 District/Sub-district Banks; with12600Branches;

.

Worlds largest agri credit system;

Central financing through NABARD;

8% lending rate [2% subsidy by Govt]; PACS major users for agri production;



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Credit status7 SCBs & 143 DCCBs do not comply

with minimum share capital requirement

More half of the PACS & more than 500

s are ncurr ng osses



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Reasons for failure os

Cooperative Credit Societies Increasing no. of commercial banks in

rural areas

Fraud & Corruption

Financial CrisesMore political intervention

Lack of Training

Lack of technology



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National Agricultural Cooperative

Marketing Federation(NAFED)

Estd 2nd October 1958

To facilitate, coordinate and promote themarketing and trading activities of the

coopera ve ns u ons n agr cu ura another commodities, articles and goods

Total internal trade Rs. 408045.96 lakh

Total International trade Rs. 98458.88 lakh



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National Cooperative Housing

Federation (NCHF)Set up in 1969

4 tier structure housing coop, distt.Federation, State fed, & national.

26 state level federations92,000 housing cooperatives with6.6 m

members

3 million dwelling upto 2008



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Issues Heavy erosion in their democratic and autonomous

functioning.

Most of the grassroots co-operatives are not self-reliant

and heavily dependent on Government Assistance.

Management not responsive to the needs of the members

and not truly accountable to them. Sickness is increasing resulting in large number of defunct

/ dormant societies.

Co-operatives are not well equipped to face the challenges

of open and competitive market oriented economy. As aresult, they are not only loosing ground in their traditional

areas of activities but also unable to enter into new

ventures



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Constraints Elections are not held regularly.

Supersession of Board of Directors and appointment of

Administrators for undue longer period.

General Body meetings are not held regularly.

Audit is not professional. It is also not conducted in time.

There is undue and unnecessary political interference andbureaucratic control even in their day-to-day affairs.

Unprofessional management leading to high operational cost

and delayed delivery of services to members.

Lack of member participation.

Poor system of monitoring and inadequate checks and

balances.



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Problems The products are neither popular among

customers nor profitable to the institutionthemselves.

iff m i i n fr m riv

Poor participation of members

Weak financial base of societies

Absence of professional management

Ever growing corruption and frauds, etc



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Suggestions1. Cooperative Reforms

Simplified procedure for registration

Removal of unwanted govt.

interferences Members of non political background

Defined rules & procedures



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2. Administrative ReformsDebureaucratisation

Professional Management & staff

Skill building/ skill upgradation of staff

Adoption of uniform accountingprocedures.



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3. Business ReformsAfter scanning environment

development plan should be madeThe plans should be quantifiable &

measura e w spec e me ramefor achievement.

Empowered monitoring scheme.



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Some Success Stories


AMUL Anand Milk


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AMUL-Anand Milk-

producers Union Limited Formed in Dec,1946, & started a dairy

cooperative movement in India under the

leadership of Varghese Kurian.

It is a brand name managed by an apex, -

Milk Marketing Federation Ltd. (GCMMF),started with 2 village having 250 lt/day milkwhich today is jointly owned by some 2.8

million milk producers in Gujarat, with milkcollection average of 10 million litres/day

It is also the world's biggest vegetarian

cheese brand.Deepak Singh Cooperatives in India 36


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AMUL13 : District coop. milk producers' Union

2.8 million : Milk producing members12,792 : Village Societies

10 million liters : Daily(avg) milk collection

60 percent milk : Converted to value added594 Mts. : Daily milk drying capacity

2640 Tns/ day : Cattle feed manufecturing

1.05 Billion US$ : Annual Turnover28 Million US$ : Exports



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Automatic Milk Collection System units

(AMCUS) at village societies wereinstalled in the first phase to automate

.

AMCUS facilitated to capture memberinformation, milk fat contents, volume

collected and amount payable to eachmembers electronically via a plasticcard for identification.



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Now officials at AMUL are planning to

upgrade the plastic card to SMART cards tofacilitate farmers to withdraw money from

ATMs

Initiatives have been taken for online orderplacement for AMULs products as a result of

which AMUL is today exporting products to

West Asia, Africa and U.S.A.

AMUL also planning to double the production

by 2020 to fulfill the future demand.Deepak Singh Cooperatives in India 39

Indian Farmers Fertiliser Co


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Indian Farmers Fertiliser Co-

operative Limited (IFFCO) Indian Farmers Fertiliser Co-operative

Limited (IFFCO) was registered onNovember 3, 1967 as a Multi-unit Co-

.

The number of co-operative societiesassociated with IFFCO have risen from

57 in 1967 to more than 38,155 atpresent, undertaking distribution of itsfertiliser through these co-operative

societies.Deepak Singh Cooperatives in India 40


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Suguna Poultry Suguna's Success of an Extraordinary Vision Incorporated

as a company in 1994

The success of Suguna is a glorious testimony of the power ofhuman visionary zeal, innovation, determination and co-operation.

Poultry Integration is a concept introduced and achieved by

Suguna.

Suguna has been successful in the integration of tens ofthousands of farmers, thereby enhancing their life-styles.

Suguna has steadily and positively grown on its core ideals of

Total Quality Management, constant Innovation, impeccablehygiene and understanding Customer needs.



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Mission 25% Market share in India

20% Annual Income from Exports Switch over consumers from Live Bird to

25% income from Sugunas branded products

Recognizing human values

Social commitment



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ConclusionCooperative have a unique place in

growth of the rural India, this is the onlytool by which the problem of scarcity of

.

is a need to revamp the cooperativesstructure & status to achieve the full

fledged benefits of it.



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"In cooperatives, men and women have intheir hands the tools to fashion their

own est ny.Murray D Lincoln



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seminar on coopeartive in india

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