Co Operative Movement In India - Presentation Transcript

1. 2. GOOD MORNING GROUP MEMBERS NAME ROLL.NO. GAURAV KENI 20 JOLISH MEHTA 26 SUSHIL PATIL 45 SIDDHESH PAWAR 46 SWAPNIL WAJE 54 DEVELOPMENT OF CO-OPERATIVE MOVEMENT IN INDIA INTRODUCTION DEFINITION:Co-operative movement can be define as a 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 advantage which given to people can not get individually and with the purpose of promoting certain virtue and values such as self help , mutual help, self reliance and general goods of all. HISTORICAL PROFILE OF CO-OPERATIVE MOVEMENT IN INDIA Around the world modern cooperatives have developed for over 200 years. Co-operative institutions exist all over the world providing essential services which would otherwise be unattainable. In many countries, co-operatives such as credit unions and agricultural organizations have been very successful in helping people to provide for themselves where private and other corporate capitals do not see high profitability . Development of Indian Co- operative Movement (Period wise) 1] Beginning Period of Co-operative Movement in India (1904 - 1912):Started on 25th march 1904 Objectives : Establishment of co-operative societies Legal Existence Control of registrar Loans to members Concession to society Development of Indian Co- operative Movement (Period wise) 2] Period Of Harried Expansion (1912-1918):The Govt. passed another act in 1912. Features:Permission to start non-credit supplying societies. Classification as per their responsibility Utilization of profit Special right to societies Concession to co-operative societies. Development of Indian Co- operative Movement (Period wise) 3] Unplanned Rapid Developement (1919- 1929):By passing this in 1919 the Co-operative Movement Boosted up. Co-operative Movement was Defines as Unplanned Developement by Ramdas

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Pantalu. 9. Development of Indian Co- operative Movement (Period wise) 4] Period of Consolidation and Re-organization (1929 1939):-

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World wide financial depression in 1929. In 1935 RBI was formed and suggest that co-operative societies should be given

priority. 10. Development of Indian Co- operative Movement (Period wise) 5] Period of Recovery (1939 1947):-

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During this period financial depression was removed. The Co-operative Movement was again on path of its development. Development of Indian Co- operative Movement (Period wise) 6] The Sixth Stage (1947 -1970) 7] The Seventh Stage (1970 2000) 8] The Eighth Stage (2000 Onwards) MAJOR TYPES OF CO-OPERATIVES (1)The Primary Agricultural Credit/Service Societies (2) Agricultural Non-Credit Societies (3) Agricultural co-operative Marketing Societies (4) Co-operative Farming Societies CAUSES OF SLOW PROGRESS Government Interference. Mismanagement and manipulation. Lack of Awareness. Restricted Coverage. Functional Weakness. Participation of Women in Co-operatives

The need for greater participation of women in cooperatives especially in areas where they have a natural advantage is accepted by all. o Women have equal opportunities for voting and electing their representatives in Central and State Legislatures as also in local bodies and panchayats. 15. CASE STUDY Amul (Anand Milk Union Limited), formed in 1946, is a Dairy co-operative movement in India. 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. 16. AMUL DAIRY CO-OPERATIVE MOVEMENT 17. AMUL DAIRY CO-OPERATIVE MOVEMENT 18. GROWTH OF CO-OPERATIVE SECTOR IN INDIA

India has basically an agrarian economy with 72% of its total population residing in rural areas . Co -operatives have extended across the entire country and there are many members nationwide. o Dairy co-operatives operating under the leadership of the National Dairy Development Board and through 15 state cooperative milk marketing federations has now become the largest producer of milk in the world. 19. CONCLUSION

The Co-operatives in the 21st Century must remain on vanguard in providing the required lead to the millions of our producers. o The vision for the second century is to withstand the challenges of competitive business environment where excellence, efficiency and high productivity parameters will be given priority. 20. THANK YOU

Co-operative Societies - Presentation Transcript

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Nishant R. Nair Class - 9-2 Roll No. - 28 Co-operation

Derived from the Latin word co-operari co means with and operari means to work Co-operation means working together 4. Co-operative Society o A voluntary association of persons; o working together with common economic objective ; o providing support to the members; o self-help and mutual help ; o non-profit motive; o pooling individual resources for group welfare; o for common benefit . 5. OBJECTIVES o Render service, not for profit; o Mutual help, not competition; o Self help, not dependence; 6. Characteristics 7. Open membership o Membership open to all with common interest; o Minimum of ten members; o No restriction on the maximum number; o Members may specify the maximum number for their Society 8. Voluntary Association o Members coming together voluntarily; o by choice, not by force; o Continues for as long as he likes; o May leave at his will. 9. State control o Registration compulsory; o Statutes, Rules and Bye Laws to protect the interest of members; o Has to maintain books and records; o Subject to statutory audit of books by qualified Chartered Accountants; o Functions under the regulatory supervision of Registrar of Co-operative Societies 10. Sources of Finance o Capital contributed by all the members; o May raise loans and secure grants from government; o after its registration. 11. Democratic Management o Governed by a Managing Committee or Board of Directors elected by the members of the society; o Managed on democratic lines; o One member one vote, irrespective of no. of shares held; 12. Service motive o Co-operatives not to maximize profit but to provide service to its members; o A Consumer Co-operative Store sells quality goods to members at a reasonable price retaining a small margin of profit; o In a Housing Co-Operative, members reside by sharing expenses on maintenance and repairs. 13. Separate Legal Entity

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Separate legal entity; Limited liability of its members; Continuity of existence; Death, insolvency or lunacy of a member not to affect the existence of a

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Can enter into agreements; Can purchase or sell properties in its own name; Can sue and be sued. 14. Distribution of Surplus o Distributes Profits earned among Members on the basis of members participation in the business of the society; o Profits generated are not at the cost of its members; o Example: in a Consumer Society, profit generated by sale of goods to general public is paid as purchase bonus to members on the basis of goods purchased by them from the society. 15. Self-help through mutual cooperation o Co-operative Societies thrive on the principle of mutual help; o They are the organizations of financially weaker sections of society; o converts Weakness to strength by self-help through mutual co-operation; o Fights exploitation and secure a place in society through Each for all and all for each. 16. Formation of a Society 17. Governed by the Co-operative Societies Act, 1912; Minimum of 10 persons having the capacity to enter into a contract with common economic objectives; A joint application along with the bye-laws of the society containing the details about the society and its members to the Registrar of Co-operative Societies of the concerned state; After scrutiny, the registrar issues a Certificate of Registration Formation of a Society 18. Requirements for Registration Application with the signature of all members Bye-laws of the society containing: Name, address and aims and objectives of the society Names, addresses and occupations of members Mode of admitting new members Share capital and its division 19. Advantages 20. o Easy Formation o Open Membership o Democratic Control o Limited Liability o Elimination of Middlemens . Profit o State Assistance o Stable Life 21. Easy Formation o Formation easy compared to a joint stock company; o Any ten adults with common intent; o voluntarily forming an association; o Registered with the Registrar of Co-operative Societies. 22. Open Membership

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Persons with common interest voluntarily coming together may become a member of the society at his will And leave the Society at will. 23. Democratic Control o controlled in a democratic manner; o Elects representatives to govern the affairs of the Society; o One member, one vote; o Governing Council/ Committee accountable to members and the Regulators. 24. Limited Liability o liability of members limited to the extent of the capital contributed by them to the Society; o No personal liability to members for the liability of the Society 25. Elimination of Middlemens Profit o Combined strength of members; o to derive economies of scale; o for direct access to manufactures and producers; goods and services; to markets and distribution channels ; o Eliminates middlemens profit 26. State Assistance o Central and State assistance; in the form of capital contribution; loans at low rates of interest; exemption in tax; subsidies in repayment of loans, etc . * *Graph showing Government assistance to TDCC Tribal Development cooperation corporation 27. Stable Life fairly stable life; continuous existence; existence not affected by death, insolvency, lunacy or resignation of members. 28. Limitations 29. Limited Capital o Source of capital limited, by limiting membership to a particular section of the society; o No incentive to members to contribute more to the capital due to low rate of return; o Governments assistance often inadequate for most Co-operatives 30. Problems in Management o lack of managerial talent due to elected representatives lacking in managerial experience and expertise; limited resources hampering outsourcing of professional managerial talent; 31. Lack of Motivation o Lack of motivation owing to Societies being service oriented not profit oriented; Extra efforts by any particular member not getting extra reward; Being aloof and not involved does not result in denial of rewards. 32. Lack of Co-operation o Societies often suffer from Personality differences; Ego clashes;

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Selfish attitudes; Lack motivation; Ignorance of or irreverence to principles of co-operation 33. Dependence on Government o Societies ften tend to be dependent on government patronage and support in terms of grants, loans subsidies, etc., owing to inadequacy of capital; Limited access to raw materials; Lack of market and distribution of channels for products; Vagaries of nature leading to financial burden on members, etc. 34. 35. Consumers Co-operative Society o For protecting interest of general consumers; o by making consumer goods available at a reasonable price; o Source goods directly from the producers or manufacturers; o eliminates middlemen in the distribution process. o Some examples : Kendriya Bhandar, Apna Bazar Sahkari Bhandar Employees consumer co-operative societies; Etc. 36. Producers Co-operative Society o to protect interest of small producers; o By making available raw materials, tools and equipments, machinery, etc.; o Arranging Marketing & Distribution channels, etc. o Examples: Amul APPCO, Bayanika, Haryana Handloom, Co-optex 37. Co-operative Marketing Society o Society of small producers and manufacturers; o collects the products from members o makes available better marketing & distribution channels economically; o sells in the market. o Examples: Anand Milk Union Ltd., (Amul); Co-optex UP Handloom 38. Co-operative Credit Society o formed to provide financial support to members o accepts deposits from members; o grants loans to members at reasonable rates of interest Examples: Village Service Co-operative Credit Societies, Employees co-operative credit societies, etc . 39. Co-operative Banks o formed to provide banking facilities to members; o accepts deposits; o grants loans at reasonable rates of interest o Examples: 40. Co-operative Farming Society

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formed by small farmers; to pool small holdings and work to benefits of large-scale farming; Examples : Lift-irrigation Cooperative Societies; pani-panchayats Housing Co-operative Society provide residential accommodation to members Constructs houses or apartments for members; Provides amenities; Takes care of maintenance and repairs. IFFCO Giant of a Co-operative Co-operatives Share in Fertilizer Production

Bibliography Various Internet sites acknowledgement: www.google.com

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Cooperative History

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The Rochdale Pioneers 3. Co-operatives started out as small grassroots organisations in Western Europe, North America and Japan in the middle of the last century, however, the it is the Rochdale Pioneers that is regarded as the prototype of the modern cooperative society and the founders of the Co-operative Movement. 4. 5. In 1844 a group of 28 artisans working in the cotton mills in the town of Rochdale, in the north of England established the first modern co-operative business, the Rochdale Equitable Pioneers Society (photo). The weavers faced miserable working conditions and low wages, and they could not afford the high prices of food and household goods. They decided that by pooling their scarce resources and working together they could access basic goods at a lower price. Initially, there were only four items for sale: flour, oatmeal, sugar and butter. 6. 7. The Pioneers decided it was time shoppers were treated with honesty, openness and respect, that they should be able to share in the profits that their custom contributed to and that they should have a democratic right to have a say in the business. Every customer of the shop became a member and so had a true stake in the business. At first the co-op was open for only two nights a week, but within three months, business had grown so much that it was open five days a week. 8. 9. The principles that underpinned their way of doing business are still accepted today as the foundations upon which all co-operatives operate. These principles have been revised and updated, but remain essentially the same as those practiced in 1844.

Statement on the Co-operative Identity

DEFINITION
A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

VALUES
Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

PRINCIPLES
The co-operative principles are guidelines by which co-operatives put their values into practice.

1st Principle: Voluntary and Open Membership

Co-operatives are voluntary organisations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2nd Principle: Democratic Member Control

Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organised in a democratic manner.

3rd Principle: Member Economic Participation

Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the cooperative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

4th Principle: Autonomy and Independence

Co-operatives are autonomous, self-help organisations controlled by their members. If they enter to agreements with other organisations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

5th Principle: Education, Training and Information

Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and opinion leaders - about the nature and benefits of co-operation.

6th Principle: Co-operation among Co-operatives

Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

7th Principle: Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members