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CO-OPERATIVES: A BOON IN INDIA

CO-OPERATIVES: A BOON IN INDIA

Discuss CO-OPERATIVES: A BOON IN INDIA within the Management Of Co-operatives ( MOC ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; CO-OPERATIVES: A BOON IN INDIA Co-operatives pursue multiple, i.e. economic and social, goals and their members participate in decision-making. In ...

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CO-OPERATIVES: A BOON IN INDIA
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Sunanda K. Chavan
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CO-OPERATIVES: A BOON IN INDIA - September 28th, 2010

CO-OPERATIVES: A BOON IN INDIA



Co-operatives pursue multiple, i.e. economic and social, goals and their members participate in decision-making. In an ILO-study identified several characteristics of the cooperative structure: discretionary power of the members, open communication, management suggests rather than instructs, risk and uncertainty are divided, motivational potential.





In India, cooperatives are numerous and an important part of the national development strategy. As such these cooperatives are embedded in an institutional environment. In the five-year development plans the central government paid considerable attention to the cooperative movement and incentives to promote it.




In fact, it was considered as the basis of planned growth and social development.




In 1997 32.9% of the employment in the organised sector was in the cooperative sector, whereas the public sector employed 46.5% and the private sector only 20.6% (Vision 2005).




Co-operatives have to face global market competition as well as other enterprises have to. The institutional embeddedness should not interfere with the sustainable competitiveness of the cooperatives. However, as tools in the development process of the country, cooperatives deserve support.




The cooperatives in India have made remarkable progress in the various segments of Indian Economy.




There are 5.03 lakh cooperative societies with a membership of more than 20.9 crores and working capital of more than Rs.227111.8 crores. In many segment of Indian economy, cooperatives are contributing predominant role in the credit sector despite of keen competition from nationalized and private sector banks. Cooperatives are disbursing nearly 46% of total agricultural credit. They are distributing 36% of total fertilizers in the country.





The share of cooperatives in sugar production is nearly 55%, in spindlege 10%, in yarn production 22.1% and in coverage of handlooms 55%. The cooperatives are playing a very important role in the public distribution system to serve the weaker sections of the community.




Nearly 28% of the rural fair price shops are within the cooperative fold. Cooperatives have also played an effective role in exports. The economic reforms which have been introduced since 1991 have given new dimensions to precepts and practices of economic development.



The co-operatives sector in India has many advantages. It has added a lot to different sections of the society. Basically, the advantages can be divided into three parts, i.e. Economic, Social & Educational.
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