Cooperative Societies in India: Definition, History, Top 10 list-UPSC Notes

Cooperative society in India simply defines a society formed by a group of people who have a common need. They unify to support one another. It is a system that encourages common assistance, parity and democracy. It is not about making profits but service. Cooperative society in India was launched to help the rural and poor population. It assists farmers, minor traders and laborers. These are societies which operate on principles of trust, fairness and joint ownership. Cooperative society in India has evolved to be a good constituent of economy and rural development over the years. Now it is time to cover the history and types of cooperative societies and their examples.

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Cooperative society in India is one of the most important topics for the UPSC IAS exam. It covers a significant part of the Economics subject in the General Studies Paper-1 syllabus and General Studies Paper II of the UPSC Prelims syllabus. Join the UPSC coaching today. It falls under the subject Governance and Social Justice, focusing on government policies, development processes, and institutions. It is important for understanding rural development, inclusive growth, and self-governance. This topic also holds significance in Prelims, Mains (GS2, Essay), and Current Affairs, especially after the formation of the Ministry of Cooperation.

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What are Cooperative Societies in India?

UN members are known as Cooperative societies in India which are voluntary association of persons or organizations established in pursuit of shared economic, social, and cultural goals. These societies are functioning according to the ideas of cooperation, mutual welfare, and democratic governance and these societies are very important in Indian development. In this case, we explore various areas in cooperative societies in India each covering various dimensions of this socio-economic concept.

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The First Cooperative Society in India

It was in the year 1904 that first cooperative society was established in India and was named as the Cooperative Credit Societies Act. It was set to support the rural farmers with money and encourage farming. This is one of the pioneering efforts that brought up the cooperative movement in the nation.

Top 10 Multi-State Cooperative Societies in India

Multi-state cooperative societies are special organizations, which extends across states. They play an important role in the economic integration and support bigger scale cooperative activities. Top 10 MiscSocIn India are as under:

India has a wide variety of cooperative societies which serve different sectors and needs of its people. This explains some of the prominent types of cooperative societies in India as below:

• Agricultural Cooperative Societies: these societies are mainly concerned with farming activities and ensure access to credit facility, seeds and latest farming methods to the farmers.
• Credit Cooperative Societies: These play the major role of advancing financial help and credit services to the members particularly to those in the rural regions.
• Housing Cooperative Societies: These are organizations, which afford members better deals on housing by pooling funds together to achieve affordable housing.
• Consumer Cooperative Societies: Consumer cooperatives are aimed towards providing limited goods and services to members at acceptable prices such as enhancing consumer welfare.
• Marketing Cooperative Societies: These are societies, which assist the farms and producers in marketing their produce effectively, so as to get better returns.
• Fishermen Cooperative Societies: Its location is on coastal areas and they aid the fishing community by furnishing them resources and markets.
• Women Cooperative Societies: The societies are employed to empower the women economically as well as give them self empowerment by developing entrepreneurship in women.
• Urban Co-Operative Banks: Urban Co-Operative Banks basically serve the financial requirements of the urban and semi-urban locales by providing banking facilities to people residing in these areas.

Also Read Understanding Cooperative Society!

Example of Cooperative Society in India

One remarkable example of a cooperative society in India is the Amul Cooperative in Anand, Gujarat. Amul, known for its dairy products, was founded in 1946 and has since transformed the lives of countless milk-producing farmers. Through collective efforts, Amul has not only ensured fair prices for milk but also established a brand known worldwide for its quality.

Also Read All About Cooperative Banks in India!

History of Cooperative Society in India

The history of cooperative societies in India is connected with the rest of the world of cooperators. The collaborative process in India could be sorted into a few major stages:

Precursory Efforts (1904-1947):

• The Cooperative Credit Societies Act, 1904 established the base of cooperative credit in India.
• Co-operative marketing societies came in to solve the marketing problems experienced by farmers.
• In 1918, the Indian Cooperative Union was constituted to propagate the principle of cooperative.

Post-Independence Period (1947-1991):

• Cooperatives financial assistance is funded by National Cooperative Development Corporation (NCDC) that was founded in 1963.
• The 1960s and 1970s saw the rise of cooperative across different sectors in dairy, textile and fisheries to mention a few.
• The 1951-52 All India Rural Credit Survey brought to the fore the role of the cooperatives in the development of the rural economy.

Liberalization of Economy (Since 1991):

• Economic liberality led to the shift that occurred in the cooperative sector where there was focus on the autonomy and professionalism.
• The Indian government continued looking after the cooperative sector as well as promoting changes towards effective governance.

Also Read Is Cooperative Society a Constitutional Body?

The Father of Cooperative Society in India

Sir Frederick Nicholson is regarded as the father of the cooperative movement in India because of his pioneering activities that made the cooperative movement successful. He has been widely recognized as the Father of Cooperative Movement in India because he played a key role in propagation of cooperative credit societies especially in the rural regions.

The role of Cooperative Society in India

The functions of cooperative societies in India are many and they include the following:

• Provision of Credit: It should offer cheap credit and financial aid to the members, particularly the rural members.
• Marketing/ Distribution: Promoting marketing and distribution of agricultural and industrial produce.
• Sharing Resources: Pooling Resources: This will enable members to share their resources to run joint economic activities.
• Self-Help promotions: Developing self-help and entrepreneurship amongst members.
• Consumer Welfare: Safety and accessibility to quality services and goods at affordable prices.

Working of Cooperative Society in India

The cooperative societies are run on a democratic platform where a board of directors is elected by members in order to run its business. The major procedures that are entailed in the operations of a cooperative society are:

• Formation: Individuals that have an interest get together and build a society and then register it according to the Cooperative Societies Act.
• Membership: Members are registered and they make contributions to the capital of the society.
• The Management is elected: The management is chosen by the members, which is empowered to make decisions.
• Operations: In this, the society undertakes its preferred mode of economic activity i.e. credit, marketing, or any other activity.
• Sharing of Surplus: They share any surplus that is created according to how they control.

Conclusion

India has a powerful growth and equality tool, which is the cooperative society. It supports small traders, farmers and workers. It has more than 100 years of history, still defining rural and urban India. The structure, laws, and practical cases of cooperative society in India should be comprehended by students going to UPSC. Having information on the way these societies operate will make the economy and the society of India easy to understand.

In India, the cooperative societies are very old, and the societies remain extremely important to the Indian economy and social fabric. These societies are inclusive since they support communities by following the principle of cooperation, mutual benefit, and democratic control. The Amul success story or the grassroots initiatives of credit societies, cooperative institutions, play a critical role in creating a more equitable and strong India. In India, the history of cooperative societies is so rich and still significant to the economy and the social life in the country. With reference to the principles of cooperation, mutual benefit and democratic control, these communities will empower communities, and this will contribute to inclusive development. It could be the impressive success story of Amul or the grassroots movement of the credit societies; there cannot be a stronger or more equitable India without the cooperative institutions.

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