WHAT IS A COOPERATIVE SOCIETY?

 

A cooperative society is defined as a voluntary organization formed by the weaker sections .

Such a society is free and voluntary association that aims at the betterment of its members. This kind of body is formed by like minded people driven by common goals.

IN INDIA

• India is an agrarian nation .
• India has the world's largest cooperative movement.
• Dairies, sugar mills , spinning mills and other cooperative enterprises in agriculture are created using the combined resources of farmers who want to process their produce.
• India has 1,94,195 cooperative dairy societies and 330 sugar mill operations.
• Around 35% of sugar produced in the country is accounted to  cooperative sugar mills.
• They have an important role in banking and finance.
• They are present in rural as well as urban areas.
• Primary Agricultural Societies ( PACs) established by farmer associations at the village level is the best illustration of credit flow at local level.
• Credit requests from these organisations are send to district central cooperative banks in advance of village's need.
• State Cooperative banks are the apex lending structure of rural cooperative system.

HISTORY; POST INDEPENDENCE

• The first cooperative established in Europe to help the region's credit starved citizens as an independent, self- managed people's movement with no involvement from government.
• British India imitated the cooperative movement in India to lessen the suffering of the poor farmers, especially the harassment by money lenders.
• The term " Cooperative Society " was coined when the farmers of Ahmednagar led a protest against money lenders.
• The first credit cooperative society was formed in Banking year 1903 with the support of government of Bengal.
• In 1904 the cooperative credit societies act of India was enacted.
• To rectify the drawbacks of earlier law another cooperative societies act was passed in 1912.
• In 1919 Cooperation became a state subject.
• Land Mortgage Cooperative Banks were established in 1938 to provide loans initially for debt relief and land improvement.
• In 1939 Cooperatives for seasonal agricultural operations were refinanced by RBI.
• The Multi Unit Cooperative Societies  Act was passed by British India in 1942 to address cooperative societies with members from more than one province.