Co-operative Structure in India

The National Cooperative Union of India (NCUI), established in 1929, is the apex organisation of the Indian Cooperative Movement. Its primary objective is to promote and develop the movement, by educating, guiding& assisting inter-cooperative relations and coordination to enable the functioning of the sector as a whole.

The consumer co-operative structure in the country has four tiers. The National Co-operative Consumers Federation of India Ltd. (NCCF) at the national level oversees State Co-operative Consumers Organisations affiliated to it. At the Wholesale level, there are Consumer Co-operative Stores which further source the Primary level stores. In the villages, Primary Agricultural Credit Societies and Marketing Societies undertake the distribution of consumer goods along with their normal business. While in urban and semi-urban areas, consumer co-operative societies operate retail outlets to meet the requirements of the consumers.

The main objective of the NCCF is to provide supply support to consumer co-operatives and other distributing agencies for distribution of consumer goods at reasonable and affordable rates besides rendering technical guidance and assistance for strengthening consumer co-operative societies engaged in retail activities. It further has 24 branches/sub-branches located in various parts of the country.

The Federation takes active participation in promoting the following sectors:

• Agri-Inputs & Infra-structure
• Coal
  
• Grocery
• General Merchandise
• Textiles
• Import/Export
• Real Estate/Civil Construction

Advantages of the Co-operative System

Over the years, co-operative institutions have played a large role in providing institutional credit to the agricultural and rural sectors across India. Co-operatives support efforts at the grass root level to mobilize resources with the aim of achieving better working results and improvements for it members.

The advantage of functioning under a co-operative is that it is neither a public nor a profit seeking organization. Its principal objective is to eliminate economic exploitation as it is controlled by members only.

It provides its members control over all the operations of the organization as it promotes a high degree of participatory involvement, making co-operatives more responsive to market & member requirements. They also generate a sense of responsibility amongst members towards the maintenance of the organization; promotes cost efficiency & keeps overheads to a minimum.

A cooperative is a small community by itself and hence can undertake several social activities such as organizing special programmes, arranging health services, improving the ecology of its area, etc. Even loans can be arranged by the co-operatives for their members, for which the members have a collective responsibility for its repayment.

Co-operative Organisations:

A Co-operative is an organisation which focuses on the promotion of the interests of its members in accordance with the principles of co-operation. It is a voluntary association of ten or more members residing or working in the same locality, who join together on the basis of equality for the fulfilment of their economic or business interest. The basic feature which differentiates co-operatives from other forms of business ownership is that its primary motive is service to the members rather than making profits.

But the objectives of a co-operative are primarily economic. It could be seen as a private business organisation that is jointly owned and controlled by its members, who also use its services.

Procedure for Registration of a Multi-State Cooperative Society

Taxation of Cooperative Societies

A co-operative is a legally established association which is owned and democratically controlled by its members. Co-operatives are based on the values of mutual help, self responsibility, democracy, equality, equity and solidarity. Co-operatives promote honesty, openness, social responsibility and caring for others.

The activities of co-operatives in various States are regulated through respective Co-operative Societies Act and Co-operative Societies Rules administered by the Registrar of Co-operative Societies appointed by the Government.

List of co-operative departments:

• Department of Registrar Co-operative Society, Delhi
• Office of Registrar of Co-operative Societies, Goa
  
• Registrar of Co-operative Societies, Gujarat
  
• Department of Co-operation, Andhra Pradesh
  
• Department of Co-operation, Meghalaya
• Sahakaar, Maharashtra
• Sahakara Sindhu, Department of Co-operation, Karnataka
  
• Co-operative Department, Tamil Nadu
  
• Department of Co-operation, Kerala
  
• Co-operatives Department, Rajasthan
  
• Department of Co-operation, Chhattisgarh
  
• Registrar of Co-operative Societies, Orissa
• Co-operative Department, Bihar
  
• Department of Co-operatives, Jharkhand
  
• Co-operatives Department, Uttar Pradesh
  
• Department of Co-operation, Madhya Pradesh
  
• Department of Co-operation, Punjab
• Co-operative Department, Himachal Pradesh
  
• Department of Co-operation, West Bengal
  
• Co-operative Department, Jammu & Kashmir
  
• Co-operation Department, Mizoram
  
• Co-operatives Department, Puducherry
  
• Department of Co-operation, Lakshadweep
  
• Co-operative Department, Tripura

Challenges in the Sector:

It is widely understood that co-operatives are a typical instrument for developing the poor. In fact co-operatives are not the most suitable institutions for the development of the poorest farmers. This is because these people are often the least able to finance and organise a co-operative. Usually medium and somewhat larger farmers take the initiative for developing a co-operative in order to overcome certain deficiencies in the market. However, once the co-operative has passed its pioneering phase, the smallholders and poorest farmers can join and reap the benefits from this affiliation.

In some areas of activity like dairying, sugar, handlooms, urban banking and housing, co-operatives have achieved great success, but there are larger areas where they have not been so productive. The failure of co-operatives in the country is mainly attributable to dormant membership and lack of active participation of members in the management of co-operatives. Mounting overdue in co-operative credit institutions, lack of mobilization of internal resources and over-dependence on Government assistance, lack of professional management, bureaucratic control & interference in the management along with political interference have proved harmful to their growth.

The potential of independent and genuine co-operatives as a tool for rural development is increasingly recognised by many governments, donors and non-governmental organisations. They should however refrain from interfering with the development of co-operatives, except by creating and facilitating a supportive legal and economic environment.

Major Co-operatives in India:

The co-operative movement in India is amongst the largest in the world, with strong links across the country's vast geographical expanses and varied cultural traditions. The Co-operative sector plays a crucial role in agro-processing, fertilizer and cash crop production in the country. In fact, operations of dairy co-operatives have propelled India to attain the top position in milk production in the world. Additionally, edible oil marketed through co-operatives and handloom co-operatives are being recognized around the world now, for their efficiency & social empowerment.

• Andhra Pradesh State Handloom Weavers Co-operative Society Limited
  
• AP State Co-operative Marketing Federation
• Anand Milk Union Limited (AMUL)
• Gujarat State Fertilizers Co-operative Limited (GSFC)
  
• Haryana State Co-operative Supply and Federation Limited (HAFED)
  
• Indian Farmers Fertilizers Co-operative Limited (IFFCO)
• Kerala Co-operative Milk Marketing Federation Limited (MILMA)
  
• Kerala State Co-operative Coir Marketing Federation Limited (COIRFED)
• Krishak Bharati Co-operative Limited (KRIBHCO)
  
• Madhya Pradesh State Co-operative Marketing Federation Limited (MPMARKFED)
• Maharashtra State Co-operative Sugar Factories Federation Limited
  
• National Agricultural Co-operative Marketing Federation of India (NAFED)
• Orissa State Co-Operative Milk Producers Federation
• Punjab State Co-operative Milk Producers Federation Limited (MILKFED)
  
• Tamil Nadu Handloom Weavers Co-operative Society (Co-optex)