Cooperative

A cooperative (also co-operative or co-op) is an autonomous association of persons who voluntarily cooperate for their mutual social, economic, and cultural benefit. Cooperatives include non-profit community organizations and businesses that are owned and managed by the people who use its services (a consumer cooperative) or by the people who work there (a worker cooperative).

Meaning
1-Cooperatives as legal entities A cooperative is a legal entity owned and democratically controlled by its members. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees. In some countries, e.g. Finland and Sweden, there are specific forms of incorporation for cooperatives. Cooperatives may take the form of companies limited by shares or by guarantee, partnerships or unincorporated associations. In the USA, cooperatives are often organized as non-capital stock corporations under state-specific cooperative laws. However, they may also be unincorporated associations or business corporations such as limited liability companies or partnerships; such forms are useful when the members want to allow. 1. 2. Some members to have a greater share of the control, or Some investors to have a return on their capital that exceeds fixed interest,

Neither of which may be allowed under local laws for cooperatives. Cooperatives often share their earnings with the membership as dividends, which are divided among the members according to their participation in the enterprise, such as patronage, instead of according to the value of their capital shareholdings (as is done by a joint stock company).

2-Identity Cooperatives are based on the cooperative values of "self-help, self-responsibility, democracy and equality, equity and solidarity" and the seven cooperative principles: 1. Voluntary and Open Membership 2. Democratic Member Control 3. Member Economic Participation 4. Autonomy and Independence 5. Education, Training and Information 6. Cooperation among Cooperatives 7. Concern for Community Cooperatives are dedicated to the values of openness, social responsibility and caring for others. Such legal entities have a range of social characteristics. Membership is open, meaning that anyone who satisfies certain non-discriminatory conditions may join. Economic benefits are distributed proportionally to each member's level of participation in the cooperative, for instance by a dividend on sales or purchases, rather than according to capital invested. Cooperatives may be classified as worker, consumer, producer, purchasing or housing cooperatives. They are distinguished from other forms of incorporation in that profit-making or economic stability are balanced by the interests of the community.

Types of cooperative governance

1- Retailers' cooperative A retailers' cooperative (known as a secondary or marketing cooperative in some countries) is an organization which employs economies of scale on behalf of its members to receive discounts from manufacturers and to pool marketing. It is common for locally owned grocery stores, hardware stores and pharmacies. In this case the members of the cooperative are businesses rather than individuals. The Best Western international hotel chain is actually a retailers' cooperative, whose members are hotel operators, although it refers to itself as a "nonprofit membership

association." It gave up on the "cooperative" label after some courts insisted on enforcing regulatory requirements for franchisors despite its member-controlled status. 2- Worker cooperative A worker cooperative or producer cooperative is a cooperative, which is owned and democratically controlled by its "worker-owners". There are no outside owners in a "pure" workers' cooperative, only the workers own shares of the business, though hybrid forms exist in which consumers, community members or capitalist investors also own some shares. In practice, control by worker-owners may be exercised through individual, collective or majority ownership by the workforce, or the retention of individual, collective or majority voting rights (exercised on a one-member one-vote basis). A worker cooperative, therefore, has the characteristic that the majority of its workforce owns shares, and the majority of shares are owned by the workforce. Membership is not always compulsory for employees, but generally only employees can become members either directly (as shareholders) or indirectly through membership of a trust that owns the company. The impact of political ideology on practice constrains the development of cooperatives in different countries. In India, there is a form of workers' cooperative which insists on compulsory membership for all employees and compulsory employment for all members. That is the form of the Indian Coffee Houses. This system was advocated by the Indian communist leader A. K. Gopalan. 3- Volunteer cooperative A volunteer cooperative is a cooperative that is run by and for a network of volunteers, for the benefit of a defined membership or the general public, to achieve some goal. Depending on the structure, it may be a collective or mutual organization, which is operated according to the principles of cooperative governance. The most basic form of volunteer-run cooperative is a voluntary association. A lodge or social club may be organized on this basis. A volunteer-run co-op is distinguished from a worker cooperative in that the latter is by definition employee-owned, whereas the volunteer cooperative is typically a non-stock corporation, volunteer-run consumer co-op or service organization, in which workers and beneficiaries jointly participate in management decisions and receive discounts on the basis of sweat equity.

4- Social cooperative A particularly successful form of multi-stakeholder cooperative is the Italian "social cooperative", of which some 7,000 exist. "Type A" social cooperatives bring together providers and beneficiaries of a social service as members. "Type B" social cooperatives bring together permanent workers and previously unemployed people who wish to integrate into the labour market. They are legally defined as follows: No more than 80% of profits may be distributed, interest is limited to the bond

rate and dissolution is altruistic (assets may not be distributed) The cooperative has legal personality and limited liability The objective is the general benefit of the community and the social integration of

citizens Those of type B integrate disadvantaged people into the labor market. The

categories of disadvantage they target may include physical and mental disability, drug and alcohol addiction, developmental disorders and problems with the law. They do not include other factors of disadvantage such as unemployment, race, sexual orientation or abuse. Type A cooperatives provide health, social or educational services Various categories of stakeholder may become members, including paid

employees, beneficiaries, volunteers (up to 50% of members), financial investors and public institutions. In type B cooperatives at least 30% of the members must be from the disadvantaged target groups voting is one person one vote

5- Consumers' cooperative A consumers' cooperative is a business owned by its customers. Employees can also generally become members. Members vote on major decisions and elect the board of directors from amongst their own number. The first of these was set up in 1844 in the North-West of England by 28 weavers who wanted to sell food at a lower price than the local shops. A well known example in the United States is the REI (Recreational Equipment Incorporated) co-op, and in Canada: Mountain Equipment Co-op.

The world's largest consumers' cooperative is the Co-operative Group in the United Kingdom, which offers a variety of retail and financial services. The UK also has a number of autonomous consumers' cooperative societies, such as the East of England Cooperative Society and Midcounties Co-operative. In fact, the Co-operative Group is something of a hybrid, having both corporate members (mostly other consumers' cooperatives, as a result of its origins as a wholesale society), and individual retail consumer members.

6- Business and employment cooperative Business and employment cooperatives (BECs) are a subset of worker cooperatives that represent a new approach to providing support to the creation of new businesses. Like other business creation support schemes, BECs enable budding entrepreneurs to experiment with their business idea while benefiting from a secure income. The innovation BECs introduce is that once the business is established the entrepreneur is not forced to leave and set up independently, but can stay and become a full member of the cooperative. The micro-enterprises then combine to form one multi-activity enterprise whose members provide a mutually supportive environment for each other. BECs thus provide budding business people with an easy transition from inactivity to self-employment, but in a collective framework. They open up new horizons for people who have ambition but who lack the skills or confidence needed to set off entirely on their own or who simply want to carry on an independent economic activity but within a supportive group context. 7- New generation cooperative New generation cooperatives (NGCs) are an adaptation of traditional cooperative structures to modern, capital intensive industries. They are sometimes described as a hybrid between traditional co-ops and limited liability companies. They were first developed in California and spread and flourished in the US Mid-West in the 1990s.They are now common in Canada where they operate primarily in agriculture and food services, where their primary purpose is to add value to primary products. For example producing ethanol from corn, pasta from durum wheat, or gourmet cheese from goats milk.

Types of cooperatives
1- Housing cooperative A housing cooperative is a legal mechanism for ownership of housing where residents either own shares (share capital co-operative) reflecting their equity in the cooperative's real estate, or have membership and occupancy rights in a not-for-profit cooperative (non-share capital co-operative), and they underwrite their housing through paying subscriptions or rent. Housing cooperatives come in three basic equity structures, In Market-rate housing cooperatives, members may sell their shares in the

cooperative whenever they like for whatever price the market will bear, much like any other residential property. Limited equity housing cooperatives, which are often used by affordable housing

developers, allow members to own some equity in their home, but limit the sale price of their membership share to that which they paid. Group equity or Zero equity housing cooperatives do not allow members to own

equity in their residences and often have rental agreements well below market rates.

2- Utility cooperative

A utility cooperative is a type of consumers' cooperative that is tasked with the delivery of a public utility such as electricity, water or telecommunications services to its members. Profits are either reinvested into infrastructure or distributed to members in the form of "patronage" or "capital credits", which are essentially dividends paid on a member's investment into the cooperative. 3- Agricultural cooperative Agricultural cooperatives or farmers' cooperatives are cooperatives where farmers pool their resources for mutual economic benefit. Agricultural cooperatives are broadly divided into agricultural service cooperatives, which provide various services to their individual farming members, and agricultural production cooperatives, where production

resources such as land or machinery are pooled and members farm jointly. Agricultural production cooperatives are relatively rare in the world, and known examples are limited to collective farms in former socialist countries and the kibbutzim in Israel. Agricultural supply cooperatives aggregate purchases, storage, and distribution of farm inputs for their members. By taking advantage of volume discounts and utilizing other economies of scale, supply cooperatives bring down members' costs. Supply cooperatives may provide seeds, fertilizers, chemicals, fuel, and farm machinery. Some supply cooperatives also operate machinery pools that provide mechanical field services (e.g., plowing, harvesting) to their members.

4- Federal or secondary cooperatives

In some cases, cooperative societies find it advantageous to form cooperative federations in which all of the members are themselves cooperatives. Historically, these have predominantly come in the form of cooperative wholesale societies, and cooperative unions. Cooperative federations are a means through which cooperative societies can fulfill the Principle, cooperation among cooperatives, with the ICA noting that "Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures. Some types of Federal cooperatives (I)- Cooperative wholesale society The aim of a cooperative wholesale society is to arrange bulk purchases, and, if possible, organise production. (II)- Cooperative Union A second common form of cooperative federation is a cooperative union, whose objective is to develop the spirit of solidarity among societies and... in a word, to exercise the functions of a government whose authority, it is needless to say, is purely

moral. Co-operatives India and the International Cooperative Alliance are examples of such arrangements. (III)- Cooperative party In some countries with a strong cooperative sector, such as the UK, cooperatives may find it advantageous to form a parliamentary political party to represent their interests.

Cooperative Marketing
A marketing cooperative is set up in order to market and sell the surplus produce of its members, being such a surplus, as they cannot consume themselves. Marketing cooperatives generally sell agricultural produce, but there are also those, which sell fish produce or handicrafts. There are also other definitions of cooperative marketing. Margaret Digby

defines a marketing cooperative as a system in which a group of farmers join together in order to carry out part or all of the processes involved in bringing the produce from the producer to the consumer. The Bank of India defines a marketing cooperative as a society of farmers, organized for the purpose of helping the members to market their produce, so as to obtain higher profits than is possible by way of private marketing.

The reasons for the establishment of such cooperatives are: When there is a surplus in production over the consumption. In order to save expenses for middlemen who benefit from the producer in various fields,
such as: bad weight, very low prices and loans at high rates of interest. When the system in force is archaic, it does not meet the requirements at all, involves many middlemen or compensates very weakly for the producer's work. Thus, a

marketing cooperative must offer its members a more efficient service than that in force, so that its members obtain a greater profit from their work.

When establishing a marketing cooperative, it is indispensable to study various aspects

and problems:

What products shall we produce and sell on the market? Whet, experience in regard to production? What species are marketable every season, quantities and qualities that are preferred? What are the perishable items that can be stored and under what conditions? What is the present marketing system? What system of payment is practiced for the producers? Is any advance payments allowed just after the crop, or will payments be

effected only after the sale of the products? What is the best marketing circle of the production? Does the product undergo a process for its improvement? To have a sound knowledge of the medium of the improvement.

Benefit of cooperative marketing

Solve Financing Problems: One producer expects to get his money upon immediate sale of his products. Another producer wishes to receive a down payment. Whereas, the cooperative is paid only after the sale of its products. Sometimes, it is even necessary to store the crop for many months before it can be sold. It is also possible that the output will be sold at a distant market, which entails transportation costs-, or, sometimes, the retailer will delay payment of his bill. All these factors produce a clash of interests between the needs of the producer and the existing possibilities of the cooperative. Therefore, working capital is indispensable to meet the requirements and to comply, at least partially, with the interests of all. An important working capital to farmers. Financing on short-terms by a bank.

Financing by a cooperative bank. Establishment of a financing enterprise where the members of the cooperative are also the shareholders. Such a financing enterprise will be established by the marketing cooperative. It is the most advantageous and cooperative solution. Cheap credit is allocated to the farmer provided he sells all his output through the cooperative. When the cooperative has determined the exact quantities, which it will be able to sell, it is in its own interest to make agreements for sates in advance. A sound sale crowns the producer's work. This is the reason why the establishment of a cooperative is a necessity to the farmer. The cooperative prevents unhealthy competition between its members, sorts out the products conscientiously and directs the supply towards the demand.

 The cooperative has to cope with all the above mentioned problems when selling its production. Other problems also arise, such as: A small supply of different products; thereby small quantities for sate. The production of vegetables and poultry must be sold several times each week. As the agricultural cooperatives are far away from the market, transportation costs go up. Bad roads and high transportation costs further increase the cost price of the product. The marketing cooperative was created in order -to push up the selling price as much as possible and to increase the return to the members -For their output . The cooperative offers its members an improved bargaining position in regard to services such as transportation, and is capable of affecting a better sale. The better the service the more members will be keen to join the cooperative. More members in the cooperative will enable a reduction in the price for various services, as well as in running costs. The cooperative makes it possible to maintain services such as storage, bulk transport, extended credit, markets survey, cooperative education, which the single farmer is generally unable to achieve. The solution to this state of affairs: a marketing cooperative owned by the producers. This cooperative's aims are to reduce to a minimum the number of marketing stages between producer and consumer.

Advantage of Cooperative marketing

1. Increases bargaining strength of the farmers

Many of the defects of the present agricultural marketing system arise because often one ignorant and illiterate farmer (as an individual) has to face well-organised mass of clever intermediaries. If the farmers join hands and for a co-operative, naturally they will be less prone to exploitation and malpractices. Instead of marketing their produce separately, they will market it together through one agency. 2. Direct dealing with final buyers In cases, the co-operatives can altogether skip the intermediaries and enter into direct relations with the final buyers. This practice will eliminate exploiters and ensure fair prices to both the producers and the consumers.

3. Provision of credit The marketing co-operative societies provide credit to the farmers to save them from the necessity of selling their produce immediately after harvesting. This ensures better returns to the farmers. 4. Easier and cheaper transport Bulk transport of agricultural produce by the societies is often easier and cheaper. Sometimes the societies have their own means of transport. This further reduces cost and botheration of transporting produce to the market. 5. Storage facilities The co-operative marketing societies generally have storage facilities. Thus the farmers can wait for better prices. Also there is no danger to their crop yield from rains, rodents and thefts.

6. Grading and standardization This task can be done more easily for a co-operative agency than for an individual farmer. For this purpose, they can seek assistance from the government or can even evolve their own grading arrangements. 7. Market intelligence The co-operatives can arrange to obtain data on market prices, demand and supply and other related information from the markets on a regular basis and can plan their activities accordingly. 8. Influencing marketing prices While previously the market prices were determined by the intermediaries and merchants and the helpless farmers were mere spectators force to accept, whatever was offered to them, the cooperative societies have changed the entire complexion of the game. Wherever strong marketing co-operative are operative, they have bargained for and have achieved, better prices for their agricultural produce. 9. Provision of inputs and consumer goods The co-operative marketing societies can easily arrange for bulk purchase of agricultural inputs, like seeds, manures fertilizers etc. and consumer goods at relatively lower price and can then distribute them to the members. 10. Processing of agricultural produce

The co-operative societies can undertake processing activities like crushing seeds, ginning 'and pressing of cotton, etc.

In addition to all these advantages, the co-operative marketing system can arouse the spirit of self-confidence and collective action in the farmers without which the programmed of agricultural development, howsoever well conceived and implemented, holds no promise to success.

Models of Marketing Cooperatives

Marketing is the process that an agricultural product goes through on its way from the producer to the consumer. Traditional marketing involves several intermediary stages within this process. The

result is, of course, that the consumer pays an exorbitant price and the producer receives a very low price for his production. Naturally, it is in the interests of both producer and consumer that the number of steps in the marketing process be reduced as much as possible. The result: the producer will earn more and the consumer will pay less. The first form of marketing is the traditional marketing circle I he peasant sells his production at a local market which is held in his village every 5 or 6 days - this is the first stage. The intermediary who buys this production transports it. Usually on overloaded small open trucks covered with a tarpaulin, to a regional market. Another intermediary will buy these goods and transport them to an urban market. The production will then be sold and distributed at the neighborhood markets where the retailers will come to get their supplies for sale to the consumers. This way agricultural produce has undergone too many stages from producer to consumer. All intermediaries have benefited -From this process, but not the producer nor the consumer. Another alternative reduces the number of steps even more. This alternative involves direct contact between the marketing cooperative owned by the farmers and the

consumer cooperative owned by the consumers. Thus, the sale of agricultural products takes place from one cooperative to another, and in principle, the profitability for the producer increases while the purchase price for the consumer decreases. This situation, though far removed from the traditional marketing circle, does not go far enough. It is still necessary to try to eliminate superfluous steps in the marketing circle. Two solutions have been found: The first consists of consumer sale centers, belonging to the marketing cooperative, an example of which is Tnuva in Israel. These sale centers link producers directly to consumers. The second solution consists in supply centers for agricultural produce,

which are owned by the consumer cooperatives, the latter belonging to the consumers. In

this example the consumers have organized themselves in order to acquire their consumer goods directly from the producers. The last marketing method, which we shall discuss, concerns the organizations which belong to the farmers and the government and which deal with the export of agricultural products . The last stage in our model is the stage at which selling takes place directly from the producer to the consumer. This is the preferable stage because it produces the best results of all, both as far as the producer is concerned, as well as for the consumer. An example of this is direct selling outlets, which have been set up by moshavim and kibbutzim at roadsides all over the country, which sell their produce directly to the public. This solution is beset with problems and is not always possible of implementation - but this is the solution we strive for.

Conclusion
The central problem to which we have been confronted was the quest to know how to establish marketing cooperative in a traditional village, existing in the traditional rural areas of any developing country. We should remember that marketing is a system designed to transfer, in the most effective way, the production from the producers to the consumers. We know that the existing marketing system in the traditional rural areas is a system, which highly exploits the producers and at the same time the consumers. This marketing system pays to the producers the lowest possible price, and at the same time, sells to consumers at the highest possible price. This system is composed of too many intermediary stages, and each of these stages takes its part from the total payment by the consumers. We find, in the traditional areas, farmers who present their merchandises on the side roads, and waiting for clients going on the road with their cars and stopping over to purchase their produces directly. We observing here a stage of marketing where the producer sells his produce directly to the consumers, without any intermediary. Both parties stand to gain here.

STRUCTURE OF COOPERATIVE MARKETING:

COOPERATIVES IN INDIA Indian Agriculture Industry

Role of cooperative marketing in agricultural produce Agriculture is basically different from manufacture .The problems faced by by it in the sale of surplus goods is quite complex and complicated. The farmers who have surplus goods have to sell these generally in un-regulated markets. They, therefore, do not get fair and reasonable price for their produce due to number of reasons. For example the goods produced by the farmers are generally perishable and cannot be stored for a longer period of time. Their is less grading of agricultural produce. No market news service is easily available to the farmers. There is a long chain of middlemen who take away about 1/8th of the hard earned income of the farmers. The transport and storage facilities are not only inadequate but also expensive. In order to help the farmers for getting a fair return of their surplus produce, establishment of cooperative sale societies are considered the best solution to help the agriculturists at the village end.

What is cooperative sale societies or cooperative marketing? Cooperative sale societies are formed on a cooperative basis. These societies arrange to sell the produce of the the member farmers and charge only a normal commission. Cooperative sale societies or cooperative marketing thus is a voluntary association of farm producers for the joint sale of their surplus products. It is the system by which a group of farmers voluntarily pool their resources and join together to carry on some or all of the processes in marketing of the agricultural produce.

Objectives of Co-operative Marketing: The main objective of establishing a co-operative marketing is to encourage the intelligent and orderly marketing of agricultural produce, to eliminate speculation and waste, to make distribution of agricultural products between producer and consumer as direct as can be efficiently done and to stabilize the marketing of agricultural productions.'' The co-operative

marketing is an alternative to private dealers with the main objective of securing a large share of profits for the producer. A co-operative marketing is thus to store, transport, process the farm goods in the form, at the time and at the place that consumers desire. At present the nucleus of co-operative marketing consists of commission shops which have been set up in the grain markets, called ''Ghala Mandies.'' These commission shops receive agricultural produce from the member and non member farmers and sell it in the local market against a commission of three percent. These co-operative shops do not undertake collection of agricultural produce at the farm. They also do not provide the transportation and processing facilities to the member farmers. The performance of the commission shops is very much like that of a private agent. It will, therefore, be not wrong to say that the idea of co-operative marketing has not yet developed.

Problem of Co-operative Marketing: A co-operative marketing society is basically a trading firm. It is faced with multiple problems. These problems are divided into three sections. (1) Economic problems (2) Technological problems (3) Sociological problems. (1) Economic Problems: (a) Scale. The co-operative marketing society due to low volume of business operates on a small scale. In the active business period, due to seasonal agricultural production, the surplus produce is short. The society is not a viable economic unit. In order to reduce the fixed cost per unit of turnover, it has to be turned into a multipurpose society. (b) Finance. The cooperative marketing society badly lacks finance. In order to increase the business volume of the society, the members are to be paid advance money before the sale proceed of the agricultural product. The society does not possess adequate marketing finance. It is therefore not in a position to increase the volume of business.

(c) Management. The small turnover in commission shops does not allow for the employment of a qualified business trained manages. The ineffective management is one of the major problems faced by the society.

(2) Technological Problems: (a) Business character: The trading activities of a marketing society are carried on in a traditional manner. The management, due to fear of loss, does not take risks. They only follow the trading practices of the commission shops run by private dealers in agricultural produce. (b) Decision making. The working of the society is affected due to inability to arrive at a quick timely decision. As the decision making of the society is done by the management committee, it takes time to call the meeting and then take decisions. The decisions of the society are mostly person oriented instead of being business oriented. (c) Lack of storage and transport facilities. The marketing societies do not usually have adequate storage and transport facilities. The facilities are indispensable for the efficient operation of the shops. (d) No outright purchase. The commission shops are not practicing any outright purchase. They do not make payments to the farmers on receipt of the produce. The farmers, therefore, hesitate to deliver the produce to these shops.

(3) Sociological Problem: The management of the co-operative marketing society is usually not co-operative minded. The executive members of the society join for political leadership. The static leadership is also a factor for inefficient working of the society. Solution to the Problem. The problems of co-operative marketing are heterogeneous. As such there cannot be a single solution to the problem. The marketing society, if is to be a viable economic unit, must switch over to multipurpose society. It should take up the work of processing the farm goods, in the form the consumers desire. The processed goods should be standardization of agricultural produce. Adequate consumers. There should be standardization of agricultural produce. Adequate arrangements shall have to be made for the transportation of goods. Storage facilities shall have to be provided in the rural areas. The control of the

cooperative marketing should be in the hands of genuine farmers who sell their produce through it.

Indian Handicrafts Industry

India is one of the important suppliers of handicrafts to the world market. The Indian handicrafts industry is highly labour intensive cottage based industry and decentralized, being spread all over the country in rural and urban areas. Numerous artisans are engaged in crafts work on part-time basis. The industry provides employment to over six million artisans

(including those in carpet trade), which include a large number of women and people belonging to the weaker sections of the society. In addition to the high potential for employment, the sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country. The export earnings from Indian

handicrafts industry for the period 1998-99 amounted to US$ 1.2 billion. Although exports of handicrafts appear to be sizeable, Indias share in world imports is miniscule. It is a sector that is still not completely explored from the point of view of hidden potential areas. India, a country with 26 states and 18 languages and more than 1500 dialects offers an enormous range of handicrafts from each of the states. Major centres in Uttar Pradesh are Moradabad also known as the "Peetalnagari" (City of Brass), Saharanpur for its wooden articles, Ferozabad for Glass. The North Western state of Rajasthan has to offer the famous Jaipuri quilts, Bagru and Sanganer printed textiles and wooden and wrought iron furniture from Jodhpur. The coastal state of Gujarat comes with embroidered articles from Kutch. Narsapur in Andhra Pradesh is famous for its Lace and Lace goods. But this is only a small part of the total product range. India offers much more. Handicrafts are classified into two categories: 1. Articles of everyday use 2. Decorative items

The craftsmen use different media to express their originality. The diversity of the handicrafts is expressed on textiles, metals precious and semi-precious, wood, precious and semi-precious stones, ceramic and glass.

Textile based handicrafts: Hand printed textiles including block and screen printing, batik, kalamkari (hand printing by pen) and bandhani (tie and die) are used in products ranging from bed-covers to sheets, dress material to upholstery and tapestry. The famous embroidered articles of silk and cotton, often embellished with mirrors, shells, beads, and metallic pieces are also found in India. Embroidery is done too on leather, felt and velvet etc. This segment of the industry accounts for almost half a million strong employment in addition to a large number of designers, block makers, weavers and packers involved in the trade.

Clay, Metal and Jewellery: Brass, copper, bronze, bell metal are used for a variety of wares and in a variety of finishes. Scintillating ornaments are available in a wide range of patterns, styles and compositions. Made from precious metals, base metals, precious and semi-precious stones; these ornaments have traditional as well as modern styles. Woodwork: Wooden articles in India range from the ornately carved to the absolutely simple. One can find toys, furniture, decorative articles, etc. bearing the art and individuality of the craftsman. India is known particularly for its lacquered wood articles. Stone Craft: The intricately carved stoneware made of marble, alabaster or soapstone, etc., inlaid with semiprecious stones carry on the heritage of Indian stone crafts. Glass and Ceramic: Glass and ceramic products are a fast upcoming segment in the handicrafts from India. The age-old production process of mouth-blowing the glass instills a nostalgic feeling. The

varied shapes of ceramic and glass in a number of colours, would appeal to Western aesthetics while retaining the Indian touch. Craft concentration Areas: A wide range of handicrafts are produced all over Indian artmetalware / EPNS ware, wood carvings and other wooden artwares, imitation jewellery, handprinted textiles, shawls as artwares, embroidered goods, lace and lace goods, toys, dolls, crafts made of leather, lacquerware, marble crafts etc. Although it is difficult to limit a specific place for the particular craft, the following places are listed for their particular crafts.

Artmetalware

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras, Mandap,

Beedar, Kerala & Jagadhari, Jaselmer Wooden Artwares : Saharanpur, Nagina, Hoshiarpor, Srinagar,

Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala &

Behrampur (WB) Handprinted & Scarves Embroidered goods : Textiles : Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & Srinagar Marble & Soft Stone : Crafts Agra, Madras, Baster, Jodhpur

Papier Mache Crafts Terracotta Zari & Zari Goods Imitation Jewellery:

: : : :

Kashmir, Jaipur Agra, Madras, Baster, Jodhpur Rajasthan, Madras, Baster Delhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal)

Artistic Leather Goods

lndore, Kolhapur, Shanti Niketan (WB)

Selected crafts pockets for achieving export goal:

Although each crafts pockets has its particular problems, a few selected craft pockets are identified based on their past performance for immediate remedial attention to stimulate a quantum in exports of handicrafts in the coming years.

Moradabad(UP) Saharanpur (UP) Jodhpur (Raj.) Narsapur (A.P.)

: : : :

For Artmetalwares and imitation jewellery For Wooden handicrafts & Wrought iron handicrafts For Wooden, Wrought Iron and Sea Shell handicrafts For Lace and Lace goods

COUNTRY-WISE EXPORTS OF HANDICRAFTS

The major buyers for handicrafts (other than carpets) are as under: Art Metalwares Wood Wares : : U.S.A., Germany, U.K. & Italy U.S.A., U.K., Germany & France U.S.A., U.K. , Germany & Canada

Hand Printed & Textiles :

& Scarves Embroidered Crochetted Goods Shawls as Artwares Zari & Zari goods Imitation Jewellery Miscellaneous Handicrafts In the changing world scenario, craft products exported to various countries form a part of lifestyle products in international market. The impact is due to the changing consumer taste and trends. In view of this it is high time that the Indian handicraft industry went into the details of changing designs, patterns, product development, requisite change in production facilities for a variety of materials, production techniques, related expertise to achieve a leadership position in the fast growing competitiveness with other countries. The 6 million craft persons who are the backbone of Indian Handicraft Industry as provided with inherent skill, technique, traditional craftsmanship but that is quite sufficient for primary platform. However, in changing world market these craft persons need an institutional support, at their places i.e. craft pockets for value addition and for the edge with other competitors like China, Korea, Thailand etc. : : : : Saudi Arabia, U.S.A. Japan & U.K U.K. U.S.A., Japan & Saudi Arabia U.S.A., U.K., Saudi Arabia & Germany U.S.A., Germany, U.K. & France & : U.S.A., Saudi Arabia, U.K., Germany

Competitive Situation

German giftware and handicrafts consumption is growing more or less in line with the relatively slow growth rate of income during the last years. Thus, expectations for additional growth are not very high. Annual growth rates of between 1.5-2 percent are forecast for the next few years for the overall giftware and handicrafts market. In general the market shows good business opportunities if prices and quality are competitive and delivery schedules are fulfilled. Apart from its own producers, Germany is supplied by giftware and handicrafts from nearly all of the European countries. German firms often import specific product groups from a particular country. Major suppliers of pottery are, for example, Spain and Portugal; fine

exclusive stationery comes from Italy, France and Switzerland; candles from Poland, China and Portugal; dried flowers from the Netherlands etc. Fierce price competition in Germany is intensified by the increasing quantity of Chinese and Asian made products on the market. For India this situation coupled with the relatively strong Indian rupee which means that firms proving to be most successful in the recent past have offered niche market giftware and handicrafts, i.e., exclusive to Indian handicrafts items or newto-market products. Product Standards In view of the wide field of products that could be considered as giftware and handicrafts, it is difficult to name standards. Compliance with EU standards and regulations is strongly suggested. There are, however, only few product groups in the giftware and handicrafts field that have to follow standards. It is essential that CE-labelling be observed where required. The CE-mark (including conformity statement and technical documentation) is mainly required for toys (88/378/EEC standard). While the quality regulations for candles are obligatory assuring a certain level of quality, the toy regulation and the electronic standards have to be observed because of safety considerations:

Major Distribution Channels

In Germany, giftware and handicrafts is distributed through five major channels: 1. Wholesalers 2. Importers/distributors 3. Commission agents/sales representatives

4. Department stores 5. Mail-order 6. Internet sales 7. Tele-shopping

1. Wholesalers: Besides offering wide range of goods to retailers for direct sales, this channel also supplies large quantities of individual articles. They are very particular in maintaining consistency in the kind of products and their quality. One of the distinguishing features of wholesalers is to provide distribution and storage facilities. Specialised wholesalers deal in sales to retailers as well as to final consumers. They maintain high quality standards and but have a narrower and in-depth range of arts and crafts.

2. Importers/distributors: Most Indian giftware and handicrafts companies use importers/distributors to market and sell their giftware and handicrafts lines. They buy and sell on their own account. Thus, the

companies take advantage of the distributor's expertise, his sales force and his existing distribution channels. Distributors call on giftware and handicrafts retailers, purchasing groups and supermarkets. The distributors' mark-up varies depending on the giftware and handicrafts item, but at least 50 percent. While the mark-ups vary according to the distributor; they usually also depend on the exclusivity of a product and on its competitiveness in the overall giftware and handicrafts market.

Germany hosts more than 45,000 giftware and handicrafts retailers. Several retailers import directly from the United States and sell to the German customer. Usually these are small companies looking for items new to the market and handling small orders only.

3. Commission agents: Commission agents provide Indian companies with direct access to the German market and direct control. Independent commercial agents are normally working on a 15 percent

commission and operate on a regional basis. They concentrate on specialist retailers, purchasing

groups and department stores. Commission agent contracts are based on stringent EU and German regulations. An Indian firm wishing to appoint an agent should make sure that such standard contracts meet its expectations. In order to facilitate market entry efforts by the agents their initial commission is often a few percent higher than the "usual" commission. These additional payments are to reimburse the agent for substantial advertising and any special efforts facilitating the new product's market entry.

4. Department Stores: Indian companies interested in establishing business contacts with major department stores, mailorder houses and retailers may also choose the direct approach. Department stores in particular, prefer to deal directly with manufacturers. Their buyers are very specialized and only handle a limited range of products. At some occasions department stores also buy through independent commercial agents. Quite often they have their own buyers as well as a few agents that usually work with them and who know their assortments. If a department store decides to import a particular giftware and handicrafts item, it places bulk rather than small orders.

5. Mail Order: On an average, each German consumer buys products totaling to DM 500 each year from mailorder houses. There are about 200 mail order companies in Germany. In Europe, Germany is the largest mail order market, followed by Great Britain and France. The total European market volume for mail order products is estimated at approximately DM 90 billion. Of the 20 major mail order companies in Europe, 12 have their headquarters located in Germany. Among them are the world's largest mail order companies: Otto Versand in Hamburg and Quelle Schickedanz AG & Co. in Fuerth. In addition, several German mail order companies operate in other European countries, as well.

6. Internet Sales: Germany will become market leader among the EU countries with regard to sales over the Internet by the year 2000. It is anticipated that by then German electronic sales, which are estimated to reach a volume of DM 500 billion worldwide in 2000, become second in the worldwide ranking after the United States and before Japan. A typical German Internet user and

a major German mail-order publication is between 20-39 years old, is highly educated and earns more money than the average German consumer. This age group consists of about 4.5 million Germans. Seventy percent of these consumers are male. Already today, the Internet is a major sales channel for German mail-order houses.

7. Teleshopping: QVC and HOT are the two tele-shopping channels in Germany. They operate all over Germany and offer various types of giftware and handicrafts; jewellery, fashion, health, beauty; household consumer goods; collectibles and home accessories.

Indian Fishery Industry

Introduction
Development of fishing industry offers big opportunity for exploitation of fishery resources of coastal as well as land waters. Although the potential for fish production in the country is estimated to be 10 million tonnes annually, the present level of production is less than 2 million tonnes. The importance of fishery co-operatives lies in rendering economic assistance to the dispersed and disorganized fisher men, whose dependence on merchant and middlemen is even greater than that of farmers.

Fishery Industry in India

Fisheries in India, as elsewhere, are broadly classified into 'Inland' and 'Marine'. The former covers rivers, canals, lakes and fresh water tanks, the estuaries having semi-saltish water and the brackish water areas. India has a vast potential of resources viz. (1) Rivers -27,359 km, (2) Canals -112.645 km, (3) Reservoirs -2.7 million hectares, (4) Tanks and ponds -1.6 million hectares, (5) Brackish water -1.42 million hectares.

A. Riverine Fisheries The total length of rivers in India is estimated to be about 27,360 km and water area of roughly 1,12,650 sq km, affording a wide variety of habitats for the fish. Riverine fisheries have a high biomass production and high standing stock of fish. They are characterized by short water residence time, low nutrient retention, low sedimentation rates and low transparency. Because of absence of water impoundments, rivers are not fit for fish culture and, therefore, suffer from scientific neglect. For a variety of reasons, estimation of riverine fish resources, either in varietal or quantitative term has rarely been attempted. Rivers are, however the largest source of fish seed of various sizes, fish breeding under artificial conditions being nominal in India. Most of the quantity of fish seed liberated in the land water is retrieved from riverine sources during the monsoon season.

B. Irrigation channels India has an extensive network of irrigation canals with an approximate length of 1.13 lakh kilometers. Only a few of them have been identified as fit for fishing and relevant lengths have been leased out for catching fish. In any case, very little attention has been paid to the development of these canals for fishing purposes. C. Reservoir fisheries Reservoirs comprise some sort of formation on a stream or a river leading to impoundment of water. There are at present about 50 large and 475 medium and small reservoirs in India covering a surface water area of about 27 lakh hectares. The function of these darns being irrigation and production of electricity, they are used for fish production only incidentally. So fish production in these reservoirs is very low. Average production was estimated to be only 2.6 kg per hectare during 1972-73. It has increased to 7 kg per hectare during 1981-82. In spite of various studies made, a clear cut package of cultural practices in these reservoirs has still to be worked out.

In large reservoirs as also in natural lakes, the responsibility of fish culture, including liberation of fingerlings and fertilizers as well as watch and ward arrangement is undertaken by the Government fisheries departments or some other central agencies, it being impossible for the fishermen community to undertake this work unless they are organized into co-operatives. D. Tanks and ponds Smaller tanks and ponds getting water from rivers, reservoirs and rain are another source of fresh water fish culture. Most of them are constructed by putting earthen it embankment upon extensive low land on the side of the tidal canals, and are usually protected through wooden slices from the high levels of adjacent canals or rivers. Some of them have got permanently disconnected from the sea water flow, and have turned into fresh water fisheries. The tanks being of manageable size, they provide ideal condition for fish culture and have a very high potential for introduction of selective production-oriented technology. These tanks need a regular maintenance of embankment and desilting operations. E. Brackish water fisheries Brackish water fish farms are being developed at places having sufficient potential for ground brackish water or sufficient and tide influence in a nearby canal. A centrally sponsored scheme has been recently sanctioned for the development of 1,500 ha of brackish water ponds with an outlay of Rs 50 crores. Progress is still to be watched. .

Fish Production in India

The vast potential for marine fisheries along the Indian coastline is well recognized. Against an estimated 4.5 million tonnes (mt) of potential conventional resources, production has been stagnating around 1.4 -1.7 mt. The one million tonne mark was reached in 1971 and the Seventh Plan target of 2 mt was never achieved. Combined with inland fisheries, the production was around 2.8 mt.

The ushering in of the new Ocean Regime resulted in the declaration of an Exclusive Economic Zone (EEZ) bringing in two lakh sq km under India's extended jurisdiction, but this has in no way led to a quantum leap in marine fish production as anticipated. There is misconception that the living resources of the ocean are inexhaustible. Nearly 95% of the conventional resources occur in the continental shelf water, especially in depth of less than 75 metres along the coasts. Fish production in India for the past few years is shown in table 1. As of today, India holds the eighth position in the world in terms of total fish production and is the first among Commonwealth countries, but it is the 136th among 162 countries in terms of per capita consumption of fish. Our average per capita consumption is very disappointing i.e 3.5 kg, against 70 kg in Japan, 13 kg in Myanmar (Burma), 11 kg in Sri Lanka and 10 kg in Bangladesh. However, in Kerala the consumption is 4 times the national average.

Export of marine products

Export of marine production increased from Rs 2.46 ; crores in 1950-51 to Rs. 234. 84 crores in 1980-81 and to Rs 597.85 crores in 1988-89. This increase partly reflects the high average unit value realization of shrimp which was Rs 82.8 per kg in 1988-89 as against Rs 33.50 in 1976, though there has been no significant increase in the total export volume of frozen shrimp. However, this item alone accounts for nearly 80% of the marine exports. The trend in market preference especially of the biggest buyer, Japan, is for cultured shrimp, accounting for nearly 35-40% of its intake (1988) of about 2.81akh tonnes from countries such as Taiwan, China, Indonesia, the Philippines and Thailand. India's contribution of cultured shrimp export is hardly 3,800 tonnes (1988) as against 30,000 tonnes from China which in 1985 exported only 6,000 tonnes. This preference for aquaculture products needs serious consideration while formulating the development strategies.

Need of Fishery Co-operatives

A co-operative structure would be suitable for this business, especially in a developing country like India, since the conditions prevailing in fisheries sector are almost comparable to those of agriculture sector viz. poverty and illiteracy of fishermen and perishability of produce. They would, thus, need guidance, at all stages in their operations. But this is possible only if they are provided with institutional structure adequately modem and responsive to their needs. A cooperative would be their own organization. Since activities involved in fishing are complex in nature it requires collective action. Following are the factors responsible for establishing co-operative structure in fisheries. 1. Fishing is restricted to on-shore areas up to 20 metres. The off-shore and deep sea areas beyond 20 metres and 80 metres have not been exploited. 2. The crafts and implements used are of rudimentary type which cannot stand the rigours and requirements of off shore or deep sea fishing. 3. The fishermen are poor, heavily indebted, or work for contractors, who take as much as 50% of the net sales proceeds from them as charges for hire of boats, net and other fishing equipments. 4. Fish is one of the most perishable commodity. Coupled with the fact that the climate is subtropical, most of the catch is consumed in areas located near the coast or in the neighborhood of the landing places. 5. Marketing of fish is mostly in the hands of middle men/traders, who dominate the scene to the disadvantage of the fishermen and the consumers. They exploit them because control over marketing is exercised through financing. The cost of finance is very high and disproportionate to the risk involved. All these factors have adversely affected the fishing industry and the economic condition of the fishermen. In the absence of institution or organization, the fishermen have remained financially weak and poor because of their continued exploitation by the money lenders, traders

and contractors. Thus, a co-operative organization at the primary level for the fishermen is absolutely essential.

Growth and Development of Fishermen's Society

Fishery co-operatives have their genesis in the report of the Royal Commission on Agriculture which suggested that fisheries should be put on sound lines. In 1944, the Fish Subcommittee of Agricultural Policy Committee recommended that like Japan, both direct and indirect assistance should be given to the industry. In 1946, the Co-operative Planning Committee recommended that state aid for the development of fishing industry should be given largely through co-operative societies. These societies should give financial assistance to their members, and stock and sell fishing craft at a fair price. They should also undertake marketing functions i.e. functions involving proper arrangement for handling, assembling, reservation, transport and distribution of fish. The societies should be grouped together under the central societies which should have their headquarters in towns. By 1948, there were 1,599 societies with 1.71 lath members with capital of Rs 50 laths. The progress of fishery co-operatives since 1960 is given in table 5. Presently the organizational structure of fishery co-operative in India consists of 7950 primary fishermen co- operatives with a membership of 8 lakhs. There are nearly 68 state and central district federations of these societies. The total business done in 1907 was Rs 45 crores. They had an uneven development. Maharashtra, Gujarat. and Karnataka federations accounted for 82% of the total turnover. In recent years the programme is being developed on a "project basis". Its main features are: 1. intensification of fleshing production through introduction of mechanised boats; 2. supply of mechanised boat on credit to groups of members of co-operatives;

3. supply of oils, nets and other requisites to the fishermen. 4. provision of common facilities and services like boat building yards, ice plant for, cold storages, canning plants, transport vehicle etc. 5. marketing of fish and fish product ; and 6. recovery of loan from sale price of fish and fish products. These integrated projects are being assisted and financed by NABARD and NCDC. The Fishing Farmers Development Agency set up in 1973-74 is intended to coordinate the function of different agencies connected with the inland fisheries and to popularize and promote intensive and integrated fish culture in tanks and ponds. The number of FFDA was 184 in 1984. By 1987, NCDC sanctioned seven projects of Andhra Pradesh, Kerala, West Bengal, Karnataka and Gujarat.

Structure of Fishery Co-operatives

Fishery co-operatives follow the three-tier pattern, though in some states it is two-tier. The tiers are (A) Primary Co-operative for a village or group of villages, at primary level; (B) District or Regional Federation between the Apex Body and Primary Co-operative (C) State level Co-operative Federation as the Apex Body. (D) National federation A. Primary fishermen co-operative Fishermen societies at the primary level are more complex than their counterparts in the agricultural sector. Good working fishermen primary societies combine in them a number of functions viz. advancement of credit for development of fisheries, culturing and production of fish, supply of fishing and household requisites, establishment of ice-plants, cold storages, transport and marketing of fish, members' education, supervising, utilization of loans and

extension programmes in collaboration with other concerned agencies. In the fisheries sector a multipurpose approach has to be developed because combination of variety of functions in the primary co-operatives are very important. This approach seems to be appropriate and practical. B. District or regional federation This federation acts as an intermediate agency between the Apex Body and the Primary Co-operatives. They provide assistance to the members and primary co-operatives with regard to provision of supplies, preservation, transportation, marketing and processing. These societies are organized at district level only. In fact, there should be federation of fishermen societies in every district having sizeable number of marine and inland fisheries. These federations should be pure type organizations having only primary fishermen societies as their members. No individual should be admitted by them even j as nominal members. The objective of these federations should be to co-ordinate the activities of .the afflicted primary societies and render them all necessary assistance in the development and exploitation of the fisheries held by them. The federation should not undertake any of the i functions of primary nature as is being undertaken by many of the central societies at present. They may provide common services of residuary nature which cannot conveniently or profitably be taken up by the primary societies individually. C. State level federation The apex body should be considered as the most important unit in the fishery cooperatives structure because of its location, size, capacity to command resources of men, money, material and market. It should be organised in each of the states having coastal/inland fisheries. The object of these federations would be to serve as vital link between the entire fishermen's cooperative sector on the one hand and the State Government and concerned semi-government organization on the other. They should also provide liaison between the fisheries co-operatives and the rest of the co-operative sector in the state as well as the concerned commercial and trading organizations. These federations should in consultation with the State Government frame , policies and give policy guidance to the structure below. They could also take up some residuary business operations and give technical guidance in matters like culturing of fish,

establishment of cold store, freezing facilities, boat build- ing/repair facilities. They may undertake interstate trade and export business. Training and educational work may also be taken up by them.

The State Level Federation has to function as a mouth -piece of the entire structure in regard to the policies pertaining to organization and development of fishery sector on cooperatives. This function, would do well vis-a-vis the official and non official areas concerned with fishery industries. Internally, the federation should act as a balancing centre, both for business and development. Thus it would help in reallocation of resources of men, money, material and, development of marketing and processing (including canning utilization of by products export etc.) can be planned on most modem lines by apex federation. In recent years vast potential for fishing and fish-products export has been revealed for this country and the federation should be enabled to exploit these avenues for the benefit of fishermen at the primary level as also to contribute their might to earning foreign exchange for the country. D. National federation The objective of the national federation is to facilitate, co-ordinate and promote fishing industry in the country through co-operatives and for this purpose to promote and undertake activities like inter-state and export trade, supply of fishing vessels, storage, transport, processing of fish, insurance business, training and education, consultancy work, advancement of loans etc. Its byelaws provide for a wide range of activities. It has, however, to be selective in taking; up activities for actual implementation. The federation also undertakes to provide expert services for planning project , preparation, monitoring, guidance etc.

Fish Fanners development agency (FFDA)

In 1971, the Technical Committee on Inland Fisheries suggested that in order to popularize the composite fish culture in inland fisheries in a systematic way, fish farmers development agencies. may be set up at suitable places in the country. To start with, five such

agencies were sanctioned in 1973-74. By 1982-83, 50 districts in 18 states had been covered by FFDA's under a centrally sponsored scheme with an outlay of Rs 500 crores by way of Central Government share. Another 58, FFDA's were operating in 5 states of West Bengal, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh under the Inland Fisheries Projects with World Bank assistance. Its objectives are:

-to arrange leasing of public water areas to the fish farmers; -to reclaim all culturable water areas in the district under the scheme; -to organize the work of the agency in such a way that it serves as a nucleus for further spread; -to create a new cadre of fish farmers who will be raising fish as distinct from fish catching, by imparting necessary training and supply of inputs; and -to popularize the new avocation and provide increased employment to rural people.

Functions of Fishery Co-operative

Fisheries co-operatives are the organization of fishermen formed with specific purpose of improving their economic conditions through improved collection, rationalization of the distribution system and stabilization of prices. In other words, such co-operatives render comprehensive economic assistance to the vast unorganized community of fishermen who have long been exploited by the middlemen and traders. They undertake grading, preservation, storage, trans- port and processing of fish and thereby ensure them a reasonable margin of profit to the fishermen. They also supply necessary inputs like nets, ropes, oil and other requirements to the members on economical terms so that the capacity of the fishermen to secure larger catches IS Improved. They may also regulate fish markets where fair prices could be through action and regulation of marketing and long -term contracts with organized buying institutions.

Though the main and central objectives of a fisher men's co-operative is considered to be the production catching and marketing of fish, it was noticed that many of these co-operatives have diversified their operations and have taken up a variety of connected and ancillary activities. These activities are broadly classified as under. 1. Supply of fishing requirements such as nylon yarn nets and gears, coal tar and paints, spare parts of vessels, floats, engine oil and lubricants etc. 2. Construction and repair of boats and its subsequent sale to members and/or sometimes to others. 3. Ice plants and cold storages had been set up by many societies. Since the marketing business is not yet fully developed, major part of the ice produced is being sold to the milk production sector. 4. Supply of household requirement to members is another activity of many fishermen cooperatives. As on 30th June 1979, fishery co-operatives in the country supplied to their members fishery requisites and consumer articles worth Rs 12.44 crores. 5. Some societies have undertaken mixed farming activities. The Captain Bheery Society in West Bengal has some spare land on the banks of the fishing tanks, on which they have been growing vegetables. The vegetables so grown are distributed among members as a welfare activity. It has also recently set up a poultry farm at a cost of Rs 34,328. It has reared 200 birds in this farm. About 500 trees have also been planted by the society on the banks of the tanks which have added to the scenic beauty of the area, apart from being a source of income in the years to come.

Management and Administration

Co-operative is democratic organization, guided and managed by elected representatives of members with the help of necessary paid functionaries. In all co-operatives the non-official elected leader plays a crucial role in decision making.

Problems of Fisherman Societies

Despite the increase in membership which is reported to have constituted nearly one third of the working fishermen in the country, the volume of fish handled by them was estimated to be only 5% of the total catch. This can be attributed to the following causes. 1. Fishery co-operatives are organizationally weak and lack in adequate finance and technical support in activities like productions, storage, marketing and processing. All these reflect poor turn over of the societies and the control of vested interests. 2. The initiative for these organizations generally comes from the middle men and the prominent members of the village, rather than from the fishermen. Hence, the interest and loyalty of the fishermen members slackens. 3. Most of the societies are not functioning properly and many of them exist on paper only. 4. These co-operatives are scattered and often situated in remote villages with lack of communication facilities, so that in the absence of suitable cold storage and transportations fresh fish cannot be speedily brought to the consuming markets. 5. Not only these co-operatives suffer from financial debility, but since credit is not linked with market- ing even recoveries of loans has been a laborious process. 6. It has been reported that a sizeable proportion of membership comprises of non-working fishermen and the general public. 7. The most outstanding factor responsible for inadequate exploitation of fishery resources in India has been the primitive methods of conducting fishing operations. Along the coast line barring a few places, by and large harbour facilities do not exist. All these factors have contributed all along to deterioration in seafood activity. It is time a comprehensive and well integrated institutional structure is set up which can take care of various facts of the seafood activity in India.

Suggestions for Improvement

A study group on fishery co-operatives set up by the Ministry of Food and Agriculture has recommended the following for the development of the fisheries co-operatives. 1. The first step in planning intensive development of fisheries cooperatives should be to undertake a comprehensive survey in each state to identify viable and non-viable units and strengthen them financially and organizationally. 2. The organization of co-operatives among fishermen should involve primary fishermen's cooperative society, co- operative fish marketing federation, and apex fisheries co- operative federation. 3. As a rule, it should be for a single primary society to cover most of the activities connected with inland fisheries so as to ensure viability of the units. However, where a specific function could not be carried out by primary societies, special societies for special purposes may be organized, provided there are prospects of their becoming viable units in due course. a. Normally, there should be one society for one village. b. The membership of the primary fishermen's society should range between 100 and 150 working fishermen. c. The members of the society should be under obligation to sell their entire catch of fish through the society. d. The members should allow the society to adjust from the sale proceedings such amounts as may be due from the members. e. The primary society should handle the catch of their members on an agency basis only. f. The necessary equipment for fishing should be owned by the societies and made available to individuals or groups of members on hire. g. The societies may collect thrift deposits from the members at the rate of 5% the sale proceeds and invest them outside their business preferably with Central Bank.

h. Each society sh9uld have a full time paid secretary. 4. Marketing federation should cover 10-15 primary societies situated in compact area. These federations should be located at places where marketing potential exit. Individual membership should not be allowed in the marketing federations. 5. The membership of the Apex Market Federation should comprise fish marketing federation only. 6. Financial assistance to primary societies should be on the specific recommendation of the marketing federations. 7. Special efforts should be made to organize co-operatives in and around the fishing harbours as far as marine fisheries are concerned and around large water areas like reservoirs, lakes, irrigation tank, etc. in the inland sector. 8. There should be a master plan for each continuous area so that fisheries societies can be organized and operated on a viable basis and each unit consisting of production as well as marketing societies should cater to the entire economic need of the fishermen's community in the area without leaving any gap for the fishermen to stay away form the co-operative fold. 9. It is essential that state government should lease out available tanks for a minimum period of 5 years to the co- operative societies to enable the latter to develop and exploit the fisheries on scientific and economic basis. 10. Small scale industries could be set up for the production of dried and cured fish, fish fillets and mince based products like sausages, wafers and fish flavourings. 11. Technical support could be provided for production of good-quality fish meal, fish ensilage, fish feed etc. from fishery waste and low value fish. 12. The State Bank of India and the central financing agencies should be induced to provide short-term loans to co-operatives on government guarantee. In case institutional finance is not available, the government should make short term loans available to the co-operatives through the banking institutions with guarantee against loss.

13. Keeping in view the policy of the Government to help the weaker section, it is essential to immediately introduce the scheme of compulsory crew insurance to be operated by the All India Fishermen Co-operative Federation. This will provide sufficient on high seas and deep waters resulting in substantial increases both for domestic consumption and export as well as provide insurance cover to support their families in case of any mishap.

India: Dairy
Dairying is a state subject in India and considerable diversity exists within the country. It is therefore extremely difficult to draw a uniform pattern for the country as a whole. Incentives, taxes and subsidies, to a great extent vary from state to state. Another important aspect is that, GOI is now giving more focus on decentralized planning involving democratic institutions at village level called Panchayat development. The dairy sector in India is predominantly smallholder and unorganized in nature. The unorganized sector accounts for >50% of total production and handles >77% of the milk marketed (2005 - 06). ( Total house hold in Prod->67 m out of this 11 m can be characterized as cattle farmers with av.2-3 animals ) 17% of small or marginal farmers and landless laborers are grouped into cooperatives (~110000 in numbers) which handles around 15% of the surplus. (About 20.33 million producer house holds forming about 30% of the total are covered by the organized sector milk marketing) Encouraging post liberalization growth of organized private sector which handles ~ 14% of the surplus1. There is presence of multinationals with promising investment plan. E.g. Nestle ( Swiss ), Fonterra ( New Zealand ), Bongrain ( France Brand Debon) and they are going to play increasing roles in dairy

The sector is closely linked / complementary to agriculture providing income, employment and nutrition to a society with high prevalence of vegetarianism. USDA Oct07 report forecasted milk production in MY 2008/09 in India to increase by 3% to 102 million tons. The leadership in production (~15% of world production) is largely due to the number of animals. The per animal productivity in Indian dairy animal is the lowest in the world. Dairy animals are largely fed on crop residues and high producing animals are supplemented with mostly home mixed concentrate feed. Recorded incidence of exports impacting domestic prices during early part of 2007 forcing government to ban export of certain milk products till 30 Sept of that year. There are cases of increasing export of oil meal resulting in high cattle feed price. Buffaloes population of which is showing a growing trend than cows, contribute more than 57% of milk production. The preference is largely due to fat based pricing system (buffalo milk is high in fat content) and its ability to convert coarse feed and thrive under adverse climatic and feed conditions. Contribution of buffalo in Milk production also puts India in to a disadvantageous position more particularly against nations who are positioning cow milk as more healthy than buffalo milk. Tariff and sanitary restrictions imposed on the import /export of dairy products effectively restrict trade in dairy products. Dairy cooperatives cover around 15% of milk animal owning household and procure around 9% of milk production. Milk is primarily produced in countries west region. Punjab one of the highest producing state is a role model for contract farming. Of Indias total production, no less than 65% is consumed unpasteurised. Out of this 44% is consumed in the rural areas where it is produced and 21% is sold to urban consumers. Quality, pasteurized milk is sold in barely 778 out of 3700 cities and towns in India. ( National Milk Grid cover 700+ towns only ) At the backdrop of hardly any subsidy, 20 cents a liter (Av.Cost of Production 14.75US$ per 100 kg) farm gate price of milk in India is one of the lowest in the world.

Consumer demand for dairy products in India is estimated to be worth EUR 13.54 billion. This demand grew by an average 7.6% per year between 1996-2002. (Against the per capita availability: 241gm (05-06). Dairy products have considerable symbolic value in Hindu religious and social life. There is emergence of new markets viz. Food service institutional market, Parlour market, Ingredient market etc. In terms of livestock service delivery, India has robust government network of 26,717 Polyclinics/Hospitals/ Dispensaries and 28,195 Veterinary aid centers (including Stockmen Centres/mobile dispensaries). These are supported by about 250 disease diagnostic laboratories. Dairy cow herd in India is decreasing by an average of 1% per year mainly because of economic reasons. Increasing meat demand is leading to increase in mostly unauthorized slaughter of productive dairy animals. Milk production is increasingly becoming a major objective of bovine rearing in India. There is marked replacement of animal power with mechanical power. Out of 18million people who are employed by dairy industry in India (excluding employment in secondary market level), 70% are woman and 67% have no access to land, credit or technology. In India, at least 9 ministries have the power to legislate on milk products (Production, recipe, Labeling etc.). Many states have different line departments that look after Dairy, Animal Husbandry and Agriculture separately. Quality of milk produced in India is not particularly high; the infrastructure of laboratories to study aspects other than standard constituents is inadequate. Increasing FDI in value added sectors indicates milk procurement based on fat is likely to shift to procurement based on microbial load.

BIBLIOGRAPHY:
1. MANAGING COOPERATIVE MARKETING by G.S. Kamat 2. www.wikipedia.org/cooperative_india 3. www. Cooperative/cooperative-marketing.php