DEVELOPMENT OF INDIAN CO-OPERATIVE MOVEMENT

DEFINITION OF CO-OPERATION

Ho Calvert: “Cooperation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of economic interest of themselves”.

DEFINITION OF CO-OPERATIVE SOCIETY

    Co-operative society is defined as “a union of persons established according to the principles of equality, the purpose is to improve the financial position of its members by joint performance, provided that all profits made, aims to distribute among members and not in proportionate to investment”.

DEVELOPMENT OF INDIAN CO-OPERATIVE MOVEMENT

1.     Beginning Period of Co-operative Movement in India (1904-1912): The Indian co-op movement started on 25th March 1904 with the passing of an Act. Provision was made for Primary Credit Co-op Society and more importance was given to agricultural finance. There were 8177 co-ops in 1912 with a membership of more than 4 lakhs. In 1911Mr. Samaldas and Mr. Gokhale started a Central Co-op Bank in Mumbai.

2. Period of Hurried Expansion (1912-1918): Shortcomings of 1904 Act were overcome by 1912 Act. Permission was granted to start co-op societies in other fields. Central Co-op Societies was developed. The number of co-ops reached 25192 in 1917 with a membership of more than 109 lakhs. A committee was appointed under the leadership of Sir Edward Mcgalan for taking overall review.

3. Unplanned Rapid Development (1919-1928): The matter of cooperation was entrusted to the provincial government. Depending upon the situation of the province various acts were passed by the respective provincial government to develop the co-operative movement in their provinces. During this period there was only quantitative growth of societies but no proper attention was given to qualitative growth. Therefore Ramdas Pantalu defined this co-ops movement as “Unplanned Development”.

4. Period of Consolidation and Reorganization (1929-1939): Because of the worldwide financial depression in 1929 the development of co-op movement stopped and about 50% of co-op societies went into liquidation. The Royal Agricultural Commission 1927 and Provincial Banking Inquiry Commission 1929 gave their recommendation and pointed out that the failure of co-ops was due to lack of education and proper guidance. During this period the existing societies had combined and registration of inactive societies were cancelled and hence the number of societies went down by 13%.

5.   Period of Recovery (1939-1947): Due to the world war the price of agricultural goods started increasing thereby increase in the income of farmer, which in turn increased deposits from 25 crores to 54 crores with Primary Credit Co-operative Societies. Consumer Co-operative Stores proposed and Industrial Co-operative Societies came into existence for supplying the war materials. Due to bifurcation in 1947 some of the co-ops had been shifted to Pakistan thereby reducing the number of societies.

6.     Sixth Stage (1947-1970): Co-operatives were included in the Five Year Plans.

7.  Seventh Stage (1970-2000): Co-operatives were asked to develop rural banks. NBARD formed as an apex bank for monitoring the co-operative banks. Initiatives were taken for replicating the Anand model for dairy co-operatives across the country.

8.     Eighth Stage (2000 onwards): The co-operatives have to face direct competition from MNCs and have to work within WTO restrictions. The government is providing adequate support to the co-ops by building brands, distribution networks and in exporting their products in global markets.