COOPERATION 


   

Overview 

The Cooperatives have been playing an important role in our agricultural and rural economy.  They are engaged in several economic activities such as disbursement of credit, distribution of agricultural inputs like seeds, fertilizers, agro-chemicals and in  arranging storage, processing and marketing of farm produce.  Cooperatives enable farmers in getting good quality inputs at a reasonable price as well as in getting remunerative returns for their farm produce when marketed through cooperatives.  The cooperative agro-processing units add value to their precious farm produce such as milk, sugarcane, cotton, fruits and vegetables and thus facilitate better returns.           

The cooperative sector in India has emerged as one of the largest in the world with more than 5.28 lakh societies of various types with a membership of more than 22.88 crore and working capital of Rs.2856433500 thousand as on 31^st March 2002. Almost 100 percent villages have been covered under the cooperative fold and about 67 percent of the rural household are the members of the cooperative institutions. 

The  Department of Agriculture & Cooperation, Govt. of India is implementing various Central Sector and Centrally Sponsored Schemes to promote the cooperatives in the country.  The Plan Schemes for the year 2002-2003 are given below:

(Rs. thousand)

Cooperative Education and Training 

The Government of India has been implementing a Central Sector Scheme for Cooperative Education and Training through the National Cooperative Union of India (NCUI) and National Council for Cooperative Training (NCCT). The Government of India is providing 100% grants-in-aid to NCCT for conducting Cooperative Training Programme in the country. NCUI is getting 100% grants-in aid for implementing the special scheme for Intensification of cooperative education in the cooperatively under developed States and 20% for approved activities. 

NCCT operates through the Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM), Pune, 5 Regional Institutes of Cooperative Management (RICMs) and 14 Institutes of Cooperative Management (ICMs) located in various states. VAMNICOM, Pune imparts training to the senior level personnel in Cooperative Departments and Organizations. The training requirements of middle level personnel in the cooperative sector are being met by the RICMs and ICMs. Training to the lower level cooperative functionaries is being provided by the Junior Cooperative Training Centres run by the State Governments/ State Cooperative Unions. During the year 2002-03, up to 30^th November, 2002, VAMNICOM, Pune conducted 55 programmes with the participation of 1804 persons while RICMs and ICMs put together trained 20670 persons under 792 programmes up to 30^th November, 2002. 

NCUI is implementing a Special Scheme for Intensification of Cooperative Education through 48 Cooperative Education Field Projects located in 26 cooperatively underdeveloped States/ Union Territories. Besides, NCUI is monitoring the education programmes being implemented by the State Cooperative Unions. During the year 2002-03, up to 31^st December, 2002, 868909 persons have been educated by the NCUI under various programmes. The outlay earmarked for implementing the Cooperative Education and Training programmes during the year 2002-2003 is Rs.40,95,00 thousand including Rs.2,25,00 thousand for the N.E. region. 

Cooperative Education and Training Activities in the North Eastern Region   

Under the special scheme for intensification of cooperative education in cooperatively under-developed states, Government of India through NCUI provides 100% financial assistance to these States which include the North Eastern region. NCUI has established 6 field projects for such purpose in the North-Eastern region. These projects have made tangible impact in improving the income of members of self-help groups and cooperatives. Out of 20 training institutes under NCCT, to train intermediate level personnel in cooperative departments and organizations, two Institutes of Cooperative Management (ICMs) are located in the North Eastern Region, at Imphal (Manipur) and at Guwahati (Assam). The outlay earmarked for implementing Cooperative Education and Training Programmes in the NE Region during the year 2002-03 is Rs.2,25,00 thousand. 

Women Developmental Activities

With the overall objective of bringing women in the cooperative fold from grass root levels by informal approach and to revitalize and promote women participation in group activities ; and to improve the socio-economic condition of women of selected blocks, NCUI is now running 4 exclusive women development projects located at Shimoga (Karnataka), Berhampur (Orissa), Manipur (Imphal) and Bhopal (MP) under the Special Scheme of Intensification of Cooperative Education in the cooperatively under-developed States. These 4 exclusive women developmental projects have formed 502 self-help groups with membership of 8010 as on 31.12.2002. Besides, each field project has got a special women development component. Under this component, women are organized into self-help groups and are helped to develop thrift habits. Women are also given training to undertake income-generating activities with the help of their own resources or by borrowing from cooperatives. The projects personnel help them in marketing their produce in the local market and by organizing melas /exhibitions.  

National Cooperative Development Corporation (NCDC) 

NCDC was established in March, 1963 under an act of Parliament as successor organisation to the National Cooperative Development and Warehousing Board set up in 1956, in pursuance of the recommendations of the All India Rural Credit Survey Committee (1954) under the aegis of the Reserve Bank of India. 

NCDC has emerged as a national development financing institution for the Cooperative Sector in the country.  A major objective of the corporation is to promote, strengthen and develop the institution of farmers’ cooperatives for increasing production and productivity and instituting post harvest facilities for augmenting income.  The Corporation’s focus is on programmes of agricultural inputs, processing, storage and marketing of agricultural produce and supply of consumer goods in rural areas.  In the non-farm sector, the Corporation’s endeavor is to equip cooperatives with facilities to promote income generating streams of activities with special focus on weaker sections of the community/rural poor, such as handlooms, sericulture, poultry, fisheries, etc. 

The Government of India implements its cooperative development programmes through the NCDC.  During the year 2002-2003 (as on 31.12.2002), the Corporation disbursed an assistance of Rs.3497100 thousand  towards this. The main programmes implemented through NCDC are Integrated Cooperative Development Project, Development of Cooperative Rural Growth Centres in Bihar (EEC assisted), Assistance to Cooperative Marketing, Processing and Storage programmes in Cooperatively Under-developed States/Union Territories, Share Capital participation in Cooperative Sugar Mills and Share Capital Participation in Cooperative Spinning Mills. 

(i) Sugar Factories 

During the year 2001-2002, NCDC has released an amount of Rs.566600 thousand to the cooperative sugar factories under various programmes. Cumulatively, as on 31.12.2002, the Corporation had released an assistance of Rs.14741500 thousand for the development of sugar industry. 

(ii) Spinning Mills 

In order to improve the economic condition of the cotton growers as well as handloom and powerloom weavers and to consolidate the gains achieved so far, NCDC continued to provide financial assistance to the spinning mills and cotton ginning and pressing units in the cooperative sector.  During the year 2002-2003 (as on 31.12.2002), NCDC released financial assistance of Rs.38000 thousand under the scheme.   

(iii) Cooperative Storage 

NCDC has been making systematic and sustained efforts to assist cooperatives for creation of additional storage capacity for facilitating expanded operations of cooperatives in the marketing of outputs, distribution of inputs and sale of consumer articles.  The storage capacity assisted by the Corporation and owned by cooperatives has increased from 11 lakh tonne in 1962-63 to 139.32 lakh tonne by the end of March, 2002. 

During 2002-2003 (as on 31.12.2002), NCDC has released a total amount of Rs.104100 thousand for cooperative storage and cold storage purposes under various programmes. 

(iv) Integrated Cooperative Development Projects 

NCDC is implementing the scheme of Integrated Cooperative Development Projects in the rural backdrop in selected districts.  An amount of Rs.107500 thousand was released for implementation of various Integrated Cooperative Development Projects during 2002-2003 (as on 31.12.2002).  The cumulative assistance released by NCDC to State Government for ICD Projects stood at Rs.6013700 thousand  up to 31.12.2002. 

(v) Cooperatives in Under-Developed States 

Promotion of programmes and their funding in cooperatively under-developed states viz. States in the entire East and North-Eastern Region, Himachal Pradesh, Jammu & Kashmir, Rajasthan and Union Territories of Lakshadweep and Andaman & Nicobar Islands remained a major thrust area of NCDC during the year under report.  The financing pattern of the Corporation is to provide more assistance on softer terms including an element of subsidy.  Further in order to accelerate the pace of cooperative development in North-Eastern Region and Sikkim, NCDC has categorized this group of States as “Cooperatively Least-Developed States” which are provided assistance upto 95 percent of the cost of each project. 

During the year 2002-2003 (as on 31.12.2002), the Corporation disbursed an amount of Rs.117500 thousand  for various cooperative development programmes in these states under its various schemes.   

(vi) Development of Cooperative Rural Growth Centres (EAP) 

This is an on-going scheme being assisted by EEC.  On the recommendation of the EEC’s Monitoring and Evaluation Mission, the Project Implementation activities were carried out from January, 1998 to March, 2001 for processing of payments and evaluation related to project closure with additional components i.e. additional margin money, PACS Banking facility, PACS Manager Subsidy, Women income Generating Unit/Programmes, training and maintenance of project cell.  During the extended period of project, an assistance of Rs.161870 thousand was released to State Govt. of Bihar for funding of activities thereby taking the cumulative releases to Rs.556120 thousand as on 31.3.2002.  

Strengthening of National Level Federations 

The Progressive expansion and diversification of Cooperative Movement has led to organisation of National Level Cooperative institutions in different fields of economic activities with a view to accelerate the pace of cooperative development in various directions and also to strengthen the cooperatives in their economic activities in a coordinated manner.  National level cooperative federations have been playing a significant leadership role.  These federations mostly are promotional in nature excepting a few which are involved in commercial activities. Government of India has been providing both policy and financial support to these federations.   The objective of scheme is to assist the national level federations to undertake in an extensive manner, promotion and research activities, improvement in infrastructure facilities and also to assist in building up their equity base.  During the year 2002-03, as assistance of Rs.15000 thousand would be provided to these federations out of which Rs.4000 thousand has been released up to 31.12.2002. 

Revitalisation of Cooperatives 

With phenomenal expansion of cooperatives in almost all the sectors, signs of structural weaknesses and regional imbalances have also become apparent.  The reason for such weaknesses would be attributed to the large percentage of dormant membership, heavy dependence on Government assistance, poor deposit mobilization of members, lack of professional management, mounting overdues, etc. Concrete steps have now been initiated to revitalize the cooperatives to make them vibrant democratic organisations with economic viability and active participation of members. 

National Policy on Cooperatives has been formulated in consultation with States/Union Territories. The objective of the National Policy is to facilitate all round development of the cooperatives in the country.  Under this policy, cooperatives would be provided necessary support, encouragement and assistance, so as to ensure that they work as autonomous, self-reliant and democratically managed institutions accountable to their members and make a significant contribution to the national economy, particularly in areas which require people's participation and community efforts. This is all the more important in view of the fact that still a sizeable segment of the population in the country is below poverty line and the cooperatives are the only appropriate mechanism to lend support to this segment of the people. 

In order to provide greater functional autonomy to cooperatives and to reduce bureaucratic interference and to professionalise the management of these institutions, based on the recommendations of Ch.Brahm Prakash Committee and Mirdha Committee, the Multi-State Cooperative Societies Act, 2002 was enacted and came into force with effect from 19^th August 2002 repealing the Multi-State Cooperative Societies Act, 1984.   Multi State Cooperative Societies, Rules 2002 has been notified vide Gazette Notification dated 2.12.2002. 

National Agricultural Cooperative Marketing Federation 

National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) is the apex level organisation of Marketing Cooperatives in India set up on 2.10.1958.  The main objectives of NAFED are to organise, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs and to undertake inter-state import and  export of agricultural produce.  Being an apex body for the cooperative marketing structure, it  extends  marketing  support to the farmers  in collaboration  with  state level cooperative marketing federations and primary cooperative marketing societies through its headquarters at Delhi,  four regional offices at Delhi, Calcutta and Chennai and 29 branches located in the State Capitals and other important cities, five Agro-service Centres, for sales outlets of processed foods and five Industrial Units. 

NAFED continues to be the central nodal agency for procurement of oilseeds and pulses, under price Support Scheme (PSS) at the Minimum Support Price declared by the Government of India on the basis of the recommendation made by the Commission for Agricultural Cost & Prices (CACP) and for procurement of horticultural commodities under Market Intervention Scheme (MIS). NAFED also undertakes buffer stocking of onions and pulses on behalf of Central Government for checking price rise in the consumer markets.  It has opened NAFED Bazar for making available various consumer items of daily use at a reasonable price. 

Price Support Scheme

In order to give remunerative prices to the farmers of oilseeds and pulses, this Department is implementing Price Support Scheme through NAFED by procuring the notified oilseeds and pulses at the Minimum Support Price fixed by the Government for each crop season.  NAFED undertakes procurement of oilseeds and pulses as and when prices fall below the MSP level. 

During 2002-03 (up to 15.01.2003), NAFED has procured 4,69,536 MTs of mustard seed valuing Rs.6714400 thousand, 2020 MT sunflower seed valuing Rs.28700 thousand and 3955 MTs copra valuing Rs.231800 thousand under the Price Support Scheme in the states of Rajasthan, Haryana, Gujarat, Uttar Pradesh, Madhya Pradesh, Delhi, Maharashtra, Karnataka, Goa, Lakshdweep, A&N Islands thereby helping the farmers in getting remunerative prices for their produce.  NAFED has also targetted procurement of 15,000 MTs urad valuing Rs.225500 thousand and 10,000 MTs arhar valuing Rs.149200 thouand under Price Support Scheme upto Feb., 2003. 

Market Intervention Scheme

On the request of State /UT Government horticultural commodities are purchased through NAFED and the concerned State agencies under Market Intervention Scheme to the benefit of farmers when the prices of that horticultural commodities fall below the economic level. 

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Last Updated On - 01 April, 2005