Role of cooperative movement

1. Role of cooperative movement Group no 2 [SYBMS]

2. TEAM MEMBERS Rakshit Jagadesh Siddik Sumeet Jay

3. CONTENT Definition of cooperation Principal of cooperative Origin of Concept of Cooperation Cooperative movement Cooperative development in Ancient India Beginning of cooperative movement Development of India cooperative movement The Eight Stages of cooperative movement Role of RBI and cooperative movement Pre-independence period Post-independence period

4. The Main Principal Of Cooperative is:- “EACH FOR ALL AND ALL FOR EACH”

5. Origin of the concept of cooperation:- “MAY LL WORK WITH THE SAME MIND SO THAT THEY COULD WORK WELL”

6. In Short “Cooperation is voluntary association of people who have come together to achieve a common goal.”

7. History of cooperative in ancient India In ancient India co-operative was in form of 4 principles like :- • Kula – Family • Jati – Caste • Gram – Village • Sreni – Classification at different levels

8. Cooperative Movement “Voluntary Movement of the people, Carried out democratically By pooling together their resources Or carrying on the given activity, With the purpose of achieving or securing certain benefits or advantages which given to people cannot get individuals and with the purpose of promoting certain virtue and values such as Self help, mutual help and self reliance and general good of all”

9. Cooperative Development in Ancient India • Joint family system • Panchayat system • Kula • India grama sabhas • Post vedic period – “Sherni” • Phad system • ABAT & GONCHI systems

10. Beginning of cooperative movement • To uplift the weaker section • The industrial revolution in England • Indebtness of farmers • Backward methods of farming • Increased impact of money lenders • Increase in market rate and scarcity • Efforts made by the British government • Deccan agricultural relief acct 1979 • Land improvement act 1883 • Agriculturist loan act 1884

11. British Government didn’t succeeded [Cooperative movement started under the leadership of Sir Edward Law its foundation stone was in India]

12. Development of India cooperative movement • [ I ] Beginning period ( 1904-1912) • Establishment of cooperative societies • Legal existence • Control of registrar • Free audit of accounts by the registrars • Classification of rural & urban societies • Responsibilities of members • Limits on distribution of dividend • Loans to members • Interest on members in society • Concessions to socities In 1912 number of cooperative societies were 8177 – membership were more than 4 lakhs – capital were up to 3357 lakhs

13. [ II ] Period of hurried expansion (1912 to 1918) • Permission to start non credit supplying societies • Classification of societies as per their responsibilities / liabilities • Utilization of profit • Special rights to societies • Concessions to cooperative societies • Restrictions in using cooperative in name • Permission to establish central societies • Share of society In 1917-1918 no of cooperative societies were 25192 – membership were up to 109 lakhs – working capital were 706.1 lakhs

14. Committee was appointed under the leadership of Sir Edward Mcgalon to study the cooperative society • Committee gave report in 1915 to government • The committee made recommendations for systematic development of cooperative society • Limited to village • Smaller • Responsibilities / liabilities • Deposits • Recovery of loans • Non cooperative societies • Auditing • Joint reserve fund • capital

15. [ III ] unplanned rapid development (1919-1929) • Royal commission

16. [ IV ] Period of consolidation & Reorganization (1929-1939) • Vigorous blow • Price • Royal agriculture commission in1927 provincial banking inquiry commission in 1929 gave their recommendations for the improvement • 1935 establishment of RBI • Establishment of Land Mortgage Bank

17. [ V ] Period of recovery (1939-1947) • Financial depression removed • World war • Price • Consumer / Cooperative stores • Industrial cooperative society • Committee leaded by Dr. DhananjayrooGadgil was appointed • In 1945 cooperative planning committee under the president ship of ShriSaraiya was appointed

18. [ VI ] The sixth stage (1947-1970) • After independence [ VII ] The seventh stage (1970-2000) • Development of rural banking sector • Formation of NABARD

19. [ VIII ] The eighth stage(2000 onwards) • Competition • Brand building • Distribution network • Export

20. CAUSES OF SLOW PROGRESS • Despite rapid growth the overall progress of cooperative movement during 100 years of Its existence is not very impressive. It is therefore necessary to know the causes of poor Performance of the movement and on that basis take such steps as would promote a faster growth of cooperative movement in India. • Government Interference • Mismanagement and manipulation • Lack of Awareness • Restricted Coverage • Functional Weakness

21. Case Study • Amul (Anand Milk Union Limited), formed in 1946, is a dairyco-operative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. • AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing economy. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL. The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the worldIt is also the world's biggest vegetarian cheese brand. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. • Over five decades ago, the life of an average farmer in Kheda District was very much like that of his/her counterpart anywhere else in India. His/her income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. Milk producers had to travel long distances to deliver milk to the only dairy, the Polson Dairy in Anand – often milk went sour, especially in the summer season, as producers had to physically carry milk in individual containers. Private traders and middlemen controlled the marketing and distribution system for the milk. These middlemen decided the prices and the off-take from the farmers by the season. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throw-away prices. In this situation, the private trader made a killing. Moreover, the government at that time had given monopoly rights to Polson Dairy (around that time Polson was the most well known butter brand in the country) to collect milk from Anand and supply to Mumbai city in turn (about 400 kilometers away). Another problem farmers faced was that in winter the milk output of buffaloes doubled which caused prices to fall down even further. India ranked nowhere amongst milk producing countries in the world in 1946. Amul was the result of the realization that farmers could pool up their milk and work as a cooperative. • The White Revolution ushered an era of plenty from a measly amount of milk production and distribution. Aside from the great measurable success that this project was, it also demonstrated the power of "collective might". A small set of poor farmers of Kheda district in Gujarat had the vision and foresight to act in a way that was good for the society and not for the self alone.

22. Role of RBI and cooperative movement

23. Role of RBI and cooperative movement • Section 54 of the RBI act provides that the bank shall create special Agricultural Credit Development Fund and department to perform the following functions • To maintain expert staff to study all questions of agricultural credit and to make funds available after consulting the central government, state cooperative bank and other banking organization • To coordinate the operations of the bank with agricultural credit and its relations with state cooperative bank and other banking organizations engaged in the business of agricultural credit

24. Role of RBI and cooperative movement in pre-independence period (1935-1947) • Banks contributions to the development of cooperative movement • Princely states • Credit limit • General policy of RBI • In 1942 RBI started providing finance • In 1944 RBI provided financial assistance

25. Role of RBI and cooperative movement in post-independence period(1951 onwards) • RBI convened a conference of official and non official people connected with cooperative movement in 1951. this conference considered various problems related to this movement. Following recommendations were made- • Important and positive role • Procedure for providing assistance • New framework for providing assistance RBI took certain steps to light of this recommendation. The steps are: • Procedure for providing financial assistance was liberalized • Loans for seasonal operation • Assistance for agriculture as well as marketing

26. Role of RBI and cooperative movement in post-independence period(1951 onwards) • Standing advisory committee • RBI redesigned its agricultural credit department • Rural credit channelization • The role of RBI further increased after the publication of all India rural credit survey in 1954 The integrated scheme for rural development was great landmark in the development of cooperative movement in India • National Agricultural Credit Fund • RBI performed financial and promotional functions • RBI established Agricultural Credit Board • In 1982 NABARD Established

27. Thankyou