ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Management Of Co-operatives ( MOC )

BANE OF CO-OPERATIVES IN INDIA

BANE OF CO-OPERATIVES IN INDIA

Discuss BANE OF CO-OPERATIVES IN INDIA within the Management Of Co-operatives ( MOC ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; BANE OF CO-OPERATIVES IN INDIA The major problem of cooperatives in India is the Government .plus there are some other ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
BANE OF CO-OPERATIVES IN INDIA
Old
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
 
sunandaC
Management Paradise Guru
 
Status: Offline
Posts: 6,685
Join Date: Jul 2010
BANE OF CO-OPERATIVES IN INDIA - September 28th, 2010

BANE OF CO-OPERATIVES IN INDIA


The major problem of cooperatives in India is the Government .plus there are some other problems they are explained as given below


1) Non-accountability:


It is like if a child when given too many benefits it gets spoiled.
The same is the case with cooperatives in India. The government gave too many benefits to cooperatives like reservation of items extra benefits like finance facilities so also it was also provided with other support this was a good thing to do, but then there was no further accountability which led to these cooperatives becoming more and more lethargic.


Besides as there was no competition they became more and more costly they were not at all efficient and the worst part was that the government allowed them to function like this and pass on the burden of costs to consumers.



2) Vested interest of some people:

A lot of times people who are in position in control of cooperatives are actually people who have joined cooperatives for personal gains. One of the major problems this causes is conflicting of personal interests with the interest of the cooperatives now this affects the performance of the cooperatives in a negative way.



3) Lack of coordination:

Generally what happens in cooperatives is that different cooperatives at different level don’t coordinate this makes the work of cooperatives difficult. Coordination is the key to success of any organization. The best example for this is AMUL which works best because of coordination


4) The Internal Free Rider Problem:


This problem arises when:


a) New members who provide very little capital enjoy the same benefits as long-standing or founding members who have major investments in the cooperative in fixed assets (plant, machinery, equipment) and working capital;



b) When the patronage of new members does not make the cooperative much more efficient or competitive by producing significant economies of scale. New members get a “free ride” on the investments and other efforts of existing members, thereby diluting the returns to existing members.


In this situation, new members do not have much incentive to provide capital because it will not appreciate in value and existing members have little incentive to provide capital that will disproportionately benefit new members.


6) No Balanced Growth:

The cooperatives in northeast areas and in areas like West Bengal, Bihar, Orissa are not as well developed as the ones in Maharashtra and the ones in Gujarat. There is a lot of friction due to competition between different states, this friction affects the working of cooperatives.


7) Political Interference:

Now this is the biggest problem faced by Sugar cooperatives in Maharashtra. The Politicians use the sugar coops as if they are their personal property and also they use it to their political advantage. This is the biggest problem of cooperatives as they use them to increase their vote bank. They also get their own favorites on the boards of such boards so they are on control these cooperatives.
Advertisements
Friends: (0)
Reply With Quote
Related to BANE OF CO-OPERATIVES IN INDIA
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
SEZ -boon or bane? Deepak Narayanan HOT Debates - The Big Fight 39 May 11th, 2011 07:39 AM
CO-OPERATIVES: A BOON IN INDIA Sunanda K. Chavan Management Of Co-operatives ( MOC ) 0 September 28th, 2010 11:02 AM
mncs boom or bane in india? Madhuri Patil General Talks 2 February 7th, 2010 06:48 PM
role of co-operatives in dairy development in india Rishabh Jiwani Management Of Co-operatives 3 October 22nd, 2008 06:35 PM
GD--5 --> Mobile a Boon or Bane?? nick18_in Group Discussions Online Archive ( GD ) 5 May 16th, 2008 12:58 PM
 

Reply

Bookmarks

Tags
bane of co-operatives, co-operatives in india, lack of coordination, management-co-operatives, political interference

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

Global concerns drag...
Last post by Drashti Saxena
3 Hours Ago 05:46 PM
0 Replies
MBA Colleges in Karungal
Last post by Ashish Paul
3 Hours Ago 05:31 PM
0 Replies
MBA Colleges in Kartarpur
Last post by Ashish Paul
3 Hours Ago 05:29 PM
0 Replies
MBA Colleges in Karoran
Last post by Ashish Paul
3 Hours Ago 05:27 PM
0 Replies
MBA Colleges in Kaarkala
Last post by Ashish Paul
4 Hours Ago 05:26 PM
0 Replies
MBA Colleges in Karur
Last post by Ashish Paul
4 Hours Ago 05:25 PM
0 Replies
MBA Colleges in Karnal
Last post by Ashish Paul
4 Hours Ago 05:24 PM
0 Replies
MBA Colleges in karjat
Last post by Ashish Paul
4 Hours Ago 05:22 PM
0 Replies
MBA Colleges in Karjan
Last post by Ashish Paul
4 Hours Ago 05:21 PM
0 Replies
MBA Colleges in Karimganj
Last post by Ashish Paul
4 Hours Ago 05:20 PM
0 Replies
MBA Colleges in Karanjia
Last post by Ashish Paul
4 Hours Ago 05:18 PM
0 Replies
MBA Colleges in...
Last post by Ashish Paul
4 Hours Ago 05:17 PM
0 Replies
MBA Colleges in Karaikudi
Last post by Ashish Paul
4 Hours Ago 05:15 PM
0 Replies
MBA Colleges in Karaikal
Last post by Ashish Paul
4 Hours Ago 05:14 PM
0 Replies
MBA Colleges in Karad
Last post by Ashish Paul
4 Hours Ago 05:13 PM
0 Replies

» Projects Helpline

Summer Internship...
Last post by Reena Dapat
2 Days Ago 05:33 PM
topics related to 100...
Last post by Dharmik Moni
3 Days Ago 05:33 PM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in