The Co-operative Centenary in India

The Co-operative Centenary in India

This year marks the centenary of the co-operative movement in India. Co-operatives of all sizes have geared themselves up for the big occasion. A people’s movement totalling 100 years of success signifies the strength of Indian democracy. The seeds of co-operation in India were sown in 1904 when the first Co-operative Societies Act was passed. Since then, the co-operative movement has made rapid progress. Co-operatives have extended across the entire country in India and there are currently an estimated 230 million members nationwide. The co-operative credit system has the largest network in the world and co-operatives have advanced more credit in the Indian agricultural sector than commercial banks.
In fertiliser distribution, the share of co-operatives is significant at 35.2%. In production of sugar their share is 58.73% and in marketing and distribution of cotton they have a share of 59.5%. The co-operative sector accounts for 55% of the looms in handloom sector. Co-operatives process, market and distribute 50% of edible oils. Dairy co-operatives have excelled in their areas of operations. India is the largest producer of milk in the world. Operation Flood, the world’s largest dairy development programme was launched in 1970. Operation Flood has ushered in milk revolution in the country through a strong chain of dairy co-operatives located all over the country.

Democratic: With rapid growth of the co-operative sector, a congenial climate has been created for the development of co-operatives as democratic and autonomous entities providing them opportunities for diversification. The co-operatives have long been demanding democratic reforms in their functioning. With the persistent efforts of National Co-operative Union of India, the Central Government recently passed the Multi-State Co-operative Societies Act and also formulated a national co-operative policy that provides greater autonomy to co-operatives.
The National Co-operative Union of India is the apex organisation promoting the co-operative movement in the country. With the passage of the Insurance Act, co-operatives have been allowed entry into insurance business. Insurance is a field where immense potential of co-operatives still remains untapped. Indian Farmers Fertilizer Co-operative Ltd, a major co-operative involved in production of fertilizers, has recently teamed up with a Japanese company and formed a joint venture for undertaking general insurance business in India. This signifies that Indian co-operatives have come of age in formulating strategic alliances. In the new economic environment, co-operatives at all levels are making efforts to reorient their functioning according to the market demands. The failure of public sector in several cases is a worrisome trend.

Privatization has also failed to make an impact in the rural areas. The government has pinned all hopes on the co-operative sector. As compared to step-motherly treatment to co-operatives as in the past, co-operatives are now considered an important plank of development. Policy and legislative initiatives now favour co-operatives. The government is committed to co-operative development and it wants co-operatives to succeed. The government knows that co-operatives have inherent advantages in tackling the problems of poverty alleviation, food security and employment generation. Co-operatives are also considered to have immense potential to deliver the goods in areas where other sectors have failed.