Cooperative society

a ppt on cooperative society

1. CO-OPERATIVE SOCIETY MADE BY – S.GOKUL CLASS - XI-D ROLL NO - 32

2. DEFINITION A co-operative is defined as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. A cooperative society may also be defined as a business owned and controlled equally by the people who use its services or who work at it.

3. Meaning It is a VOLUNTARY group of people. They have COMMON problems. They join together to solve their problems. Main aim is to protect the members.

4. Characteristics of a co-operative society a. Voluntary association : A member can join the society as and when he likes . b . Open Membership : Membership open to all who have common interest . c . Separate Legal Entity : A cooperative society must be registered under the COOPERATIVE SOCIETIES ACT 1912 or under the cooperative Societies Act of the State government d . Source of Finance : The capital is raised from the members in the form of share capital e . Motive : Main aim is SERVICE MOTIVE f. Voting Power : Each member may hold many shares but he/she has only one vote

5. Types of co-operative societies Housing cooperative Building cooperative Retailers' cooperative Utility cooperative Worker cooperative Business and employment co-operative Social cooperative Consumers' cooperative Agricultural cooperative Cooperative banking (credit unions and cooperative savings banks) Federal or secondary cooperatives Cooperative wholesale society Cooperative Union Co-operative party

6. Societies to which the Act applies Charitable societies Military orphan funds or societies Societies established for promotion of science, literature, or for fine arts Societies established for maintenance of libraries or reading rooms for general public Societies established for Public museums and galleries for paintings or other works of art.

7. CONSUMER’S CO-OPERATIVE SOCIETY It helps the consumer. It makes consumer goods available at fair prices. Example- Apna Bazaar 'Big Bazaar.

8. Marketing Co-operative society It helps producers and manufacturers to sell their products . They collect products from the producers. Then they arrange to sell them in the market. Eg. Gujarat Co-operative Milk Marketing Federation that sell Amul milk products .

9. PRODUCER’S CO-OPERATIVE SOCIETY It helps the producer. It makes available items needed for production. like raw materials, tools, machinery etc. Example- APPCO , Haryana Handloom etc.

10. Thrift and Credit Co-operative Society It gives financial helps to its member. It accepts deposits. It provides loans at reasonable Example- Urban cooperative banks

11. Co-operative Group Housing Societies These are residential societies . They provide residential houses to members . They purchase land, construct houses and allots the houses.

12. Consumer Cooperative Society Producer Cooperative society Marketing Cooperative Society Thrift and Credit Cooperative Society Cooperative Group Housing Society Help Consumers Help Producers Helps Producers and Manufacturers Give Financial Help to members Helps Members of a Housing society Makes goods available at fair price Makes items available for production Collect products from producers and sells them in the market Accepts deposits Grants loans at reasonable rates Provides housing to members E.G. Apna Bazaar E.G. APPCO E.G. AMUL E.G. Urban Cooperative bank E.G. Any housing Society TYPES OF CO-OPERATIVE SOCIETY

13. SCOPE OF CO-OPERATIVE SOCIETY

14. ADVANTAGES Easy formation Open membership Democratic control Limited liability Elimination of middleman’s profits State control Stable life Voluntary Organisation Sources of Finance Separate Legal Entity Distribution of Surplus Self-help through mutual cooperation State control

15. LIMITATION Limited capital Problems in management Lack of motivation Lack of cooperation Dependence on government Lack in commitment Poor infrastructure Lack of awareness Lack of quality management Dormant membership Cooperatives are also unable to evolve strong communication and public relations strategies which can promote the concept of cooperation among the masses.

16. CO-OPERATIVE CREATE’S EMPLOYMENT Co-operatives provide over 100 million jobs around the world, 20% more than multinational enterprises. In Canada, co-operatives and credit unions employ over 160,000 people. The Desjardins movement (savings and credit co-operatives) is the largest employer in the province of Québec. In Colombia, the co-operative movement provides 109,000 jobs and an additional 379,000 as owner-workers in workers co-operatives. They provide 23% of jobs in the health sector, 18% of the jobs in the transport sector, 13% in the worker/industrial sector, 11% in the financial sector and 9% in the agricultural sector

17. EMPLOYMENT In Slovakia, the Co-operative Union represents more 700 co-operatives who employ nearly 75,000 individuals. In Kenya, 250,000 people are employed by co-operatives. In Slovakia, the Co-operative Union represents more than 700 co-operatives who employ nearly 75,000 individuals.

18. DEMOGRAPHIC PROFILE OF INDIA The Demographics of India are overall remarkably diverse. India's population of approximately 1.13 billion people (March 10, 2008) comprises approximately one-sixth of the world's population. India is basically an agrarian economy with 72% of its total population residing in rural areas . Due to lack of Facilities Indian villagers and labors are facing disgust unemployment this can be understood as over employed capacity or natural resources . India is having huge opportunity since it is a geographically diverse and major part of our economy is undeveloped so there is a great scope . Major problem of India is related with population in case of industry limited capacity can’t serve greater employment demand.

19. PRESENCE OF CO-OPERATIVES IN INDIA During the British rule , Nicholson a British Officer in India suggested to introduce Raiffersen model of German agricultural credit Cooperatives in India. As a follow-up of that recommendation, the first Cooperative Society Act of 1904 was enacted to enable formation of “ Agricultural Credit Cooperatives" in villages in India under Government sponsorship. With the enactment of 1904 Act, Cooperatives were to get a direct legal identity as every agricultural Cooperative was to be registered under that Act only. The National Cooperative Union of India (NCUI) was established in 1929 as an apex promotional organization for strengthening of cooperatives. National Cooperative Development and Warehousing Board was set up in 1956.

20. GROWTH OF CO-OPERATIVES IN INDIA National Cooperative Development Corporation (NCDC) was established in 1963 under NCDC Act 1962 to promote production, marketing and export of agricultural produce. Number of Cooperatives Societies increased from 35 thousand in 1965-66 to 545 thousand in 2002-03. Today, Cooperatives cover each & every village of India. Role of Cooperatives in Indian Economy During the year 2002-03, Cooperatives accounted for: 46% of Agriculture Credit disbursement. 36% of fertilizer distribution. 59% of Sugar production. 32% of Wheat procurement. 65% of Storage facility.

21. DEVELOPMENT IN INDIA In fertilizer production and distribution the Indian Farmers Fertilizer Cooperative (IFFCO) with a domestic annual capacity of producing 4.3 million tones of phosphate fertilizers and 4.2 million tones of nitrogenous fertilizers commands over 35 percent of the market with more than 50 million farmers associated with it and. In the production of sugar the cooperative share of the market is over 58 percent and in the marketing and distribution of cotton they have a share of around 60 percent. The cooperative sector accounts for 55 percent of the looms in the hand-weaving sector. Cooperatives process, market and distribute 50 percent of edible oils. Dairy cooperatives operating under the leadership of the National Dairy Development Board and through 15 state cooperative milk marketing federations has now become the largest producer of milk in the world. (operation flood)

22. GOVERNMENT POLICIES The Union Cabinet first time approved the National Cooperative Policy, aiming at: Minimizing the say of the Government in Cooperatives. Redefining the role of Registrar of Coop. Societies as a facilitator for Coop. Societies. Repatriation of the Government’s equity in the Cooperatives by infusion of equivalent cooperative shares. Cooperative Law Multi-State Cooperative Societies Act- 2002 ensures functioning of Cooperatives as autonomous Institutions on sound Cooperative Principles. The new legislation reduces the role of Government and provides professionalism in Cooperatives to withstand competition. Government participation in the equity is allowed only when requested by the Society.

23. SUGGESTIONS Large-scale enterprises in the cooperative sector require huge funds. Cooperatives should be encouraged to enter capital market and mobilize funds by means of deposits, debentures etc. The state governments can act as venture capitalists Cooperatives can evolve deposit-insurance scheme, to instill confidence among the depositors, both in urban and rural areas.  Effective deposit mobilization will help them to build their own bendable resources, for profitable and diversified lending. In order to complete in the new economic environment, it should intensify its linkages with NGOs or Self-help Groups or panchayats and promotional bodies like NCDC to attract funds and other forms of assistance from international agencies like world bank, Asian development bank, EEC, FAO, ILO, etc. for specific development projects in the cooperative sector .

24. SUGGESTIONS Recommended by Expert committee Incorporates co-op principles Ensures autonomy & independence of co-ops Specifies role of federation No Gov’t control – participation in equity Incorporates provisions for self-regulation Enables co-ops to create their support services e.g. audit HRD; consultancy, financial systems Incorporates provisions for simplifying registration; mergers; division; liquidation

25. CONCLUSION Malthusian theory suggest the relationship between population growth and food production (production of food grains in G.P. while population growth is in A.P.). So this creates disequilibrium between subsistence need and population growth in developing countries .So in this regard tendency toward primary sector can minimize this problem with proper cooperation. Cooperative Society is one of the Largest sector Provides nearly 800 million. India is Employees more employee than to any other country in the world . Being Agriculture based India’s most population is situated in rural areas nearly 2/3 of total . So this gives clear indication of scope of cooperative society also Employment opportunities in this area . Much can be done to improve efficiency in cooperative society with proper management implementation and Government policies .

26. CONCLUSION CONT…. The Corporate culture will also bring sustainable efficiency and thereby cooperatives can compete with strong private players. Professionalism in the management of the cooperative enterprises will upgrade the quality of the staff with latest developments and also develop a proper and cordial relationship between the managers and members of board of directors. There must be proper and continuous training for both cooperative leaders and profession executives. There are a number of agricultural commodities like rice, sugar, fruits, vegetables; spices etc. that have strong competitive advantage in export markets. Agricultural cooperatives can take this advantage in foreign market. The leadership with vision, dedication, commitment and above all innovative approach can help in preserving Cooperative Identity in an Era of Competition.

27. CASE STUDY Q 1) What is co-operative? The worldwide co-operative movement was established in 1844 during the Industrial Revolution. This was a time of great exploitation and hardship for working people and there was a need for fairness, honesty and support for all. Robert Owen’s ideas at New Lanark were thought to be an inspiration to the Rochdale Pioneers who set up the first co-operative society. At the heart of Fair trading co-operatives are found. They provide much need support and market access for small farmers and agricultural producers. There are lots of different types of co-operatives in different economic sectors. The most important thing is that it is an enterprise which is owned and democratically run by its member farmers.

28. Q2) How does co-operative works ? Farmers buy shares in the co-operative to become members. The co-operative buys goods from other firms (such as fertilizers and seeds) and sells these to the members at a low price. The members sell their farm produce to the co-operative society (crops like maize, cocoa, cotton, coffee, milk etc.) The co-operative tries to get a good price when it sells these products again. Some big co-operatives export goods abroad. Some co-operatives change products (like making butter and cheese out of milk or milling maize to sell flour.) The co-operative may give training to the farmers to help them grow better crops. The co-operative may also give loans to the farmers so they can buy new things and expand their farm. Co-operatives offer poor farmers a way out of poverty because they can work together to get services that they did not have before.

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