UNIT 6converted
UNIT 6converted
When various farmers in a village pool there land together and agree to treat the pooled piece
of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the
cultivation, and market the crops jointly, they are assumed to have formed a cooperative
farming society. Such a society, for its proper working elects its office bearers on the basis of
one member-one-vote.
Farmers Service Societies are well organized and registered units functioning on the
principles of cooperation. As many cooperatives are rendering their services only to affluent
farmers, the National Commission on Agriculture (NCA) strongly felt that separate societies
for meeting the needs of weaker sections in rural areas are envisaged. Hence with the
recommendations of NCA, the FSS were organized in the year 1971, on cooperative lines to
provide integrated credit services to weaker sections of rural areas viz., small farmers,
marginal farmers and agricultural labourers and rural artisans.
Area of Operation:
❑ The sponsorship of these societies is done by lead bank of the respective district.
❑ The number of directors in the board of management varies from 9 to 13 based on the
size of the society.
❑ Of the nine members, five will be elected members (3 from SF and MF category and
2 from LF category) and four will be representatives of financial institutions,
Department of Agriculture and cooperative societies besides Block Development
Officer (BDO).
❑ Area of operation-
❑ Management- depends upon the size of the society. The numbers of directors in the
board varies from 9-13. one full time managing director is deputed by the lead bank.
➢ To provide adequate supplies of requisite inputs and technical guidance for their
development.
➢ To encourage dairy, poultry, fisheries, farm forestry and other occupations in rural
areas.
Cooperative farming
When various farmers in a village pool there land together and agree to treat the pooled piece
of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the
cultivation, and market the crops jointly, they are assumed to have formed a cooperative
farming society. Such a society, for its proper working elects its office bearers on the basis of
one member-one-vote.
The society represents the most comprehensive type of cooperative farming society. A joint
cooperative farming society comes into existence when the members pool their land and
other productive assets and carry on all the pre-sowing the pooling and post harvesting
functions besides the cultivation of the pooled land on cooperative basis.
In cooperative better farming society, the members do not cultivate their land jointly. Each
member cultivates his own land. However, they co-operate with each other for pre-sowing
and post harvesting operation. For instance, they purchase various agricultural inputs like
seeds, fertilizers, insecticides, services of machinery etc. on cooperative basis.
This is a society which purchase or leases in land from the Government or some private
persons and then in turn leases out the land to its members. The members cultivate the land
and pay the rent falling to their share, to the society.
This type of society involves pooling of their land by the members on a permanent basis. A
member who joins this society cannot ever withdraw his land from the society. He can only
transfer his land to some other person who will now become a substitute member of the
society.
Limited capital
Corruption of leaders
Cooperative warehousing:
❖ The parliament had passed the Agricultural Produce (Development and warehousing)
Corporation Act 1956. This act resulted in the initiation of three organization viz.,
❖ The National Cooperative Development and Warehousing Board had been changed
into National Co-operative Development Corporation by retaining co-operative
warehousing with it.
Warehousing
Co-operative Warehouses:
As the very name implies, these warehouses are owned, managed and controlled by co-
operative societies. These societies provide storage facilities on the most economical rates to
their members only. The basic purpose to run such warehouses is not to earn profit but to help
their members.
Advantages of Warehousing
NAFED
NAFED is now one of the largest procurement as well as marketing agencies for agricultural
products in India. With its headquarters in New Delhi, NAFED has four regional offices at
Delhi, Mumbai, Chennai and Kolkata, apart from 28 zonal offices in capitals of states and
important cities.
Objectives of NAFED
(1) to facilitate, coordinate and promote the marketing and trading activities of the
cooperative institutions, partners and associates in agricultural, other commodities, articles
and goods;
(2) to undertake or promote sale, purchase, import, export and distribution of agricultural
commodities, horticultural and forest produce.
(3) to undertake purchase, sale and supply of agricultural, marketing and processing
requisites, such as manure, seeds, fertilizer, agricultural implements and machinery, packing
machinery, construction requisites, processing machinery for agricultural commodities, forest
produce, dairy, wool and other animal products;
(4) to act as warehouseman under the Warehousing Act and own and construct its own
godowns and cold storages;
(5) to act as agent of any Government agency or cooperative institution, for the purchase,
sale, storage and distribution of agricultural, horticultural, forest and animal husbandry
produce, wool, agricultural requisites and other consumer goods;
(6) to organize consultancy work in various fields for the benefit of the cooperative
institutions in general and for its members in particular;
(8) to set up storage units for storing various commodities and goods, by itself or in
collaboration with any other agency in India or abroad;
(10) to establish processing units for processing of agricultural, horticultural and forest
produce, wool and allied products;
Organisation
National Cooperative Development Corporation (India)
NCDC are planning and promoting programmes for production, processing, marketing,
storage, export and import of agricultural produce, foodstuffs, industrial goods, livestock and
certain other notified commodities and services on cooperative principles and for matters
concerned therewith or incidental thereto.
Functions of NCDC
• NCDC will now be able to finance projects in the rural industrial cooperative sectors
and for certain notified services in rural areas like water conservation, irrigation and
micro irrigation, agri-insurance, agro-credit, rural sanitation, animal health, etc.
• Loans and grants are advanced to State Governments for financing primary and
secondary level cooperative societies and direct to the national level and other
societies having objects extending beyond one State.
The Corporation can also go in for direct funding of projects under its various
schemes of assistance on fulfilment of stipulated conditions
Organisation
The National Cooperative Union of India, (NCUI) is the apex organisation representing the
entire cooperative movement in the country. NCUI was established in 1929 as All India Co-
operative Institutes Association and was re-named National Co-operative Union of India in
1961. NCUI is the apex in India which represents all sectors of the Indian Co-operative
Movement. Its objectives are to promote and develop the co-operative movement in
India; The National Cooperative Union of India has travelled a long way since then to now
emerged as the sole representative of the Cooperative movement in the country. Being the
apex organisation of the Indian cooperative movement in the country.
Objectives
Express opinion on matters of cooperative policy and act as the accredited representative of
the Indian Cooperative Movement in the national and international spheres;
✓ convene and hold the National Cooperative Congress and Cooperative Seminars,
Meetings, Conferences, Exhibitions etc.;
✓ select delegates, representative and observes on behalf of the Union for participation
in the International, National and State Conferences;
✓ facilitate the promotion of cooperative institutions and assist the member societies in
resolving their problems and difficulties and formulation of programmes and their
implementation and preserve and safeguard the democratic character of the
cooperative movement in the country;
✓ Headquarters :Belgium
In 2006 the ICA published the first major index of the world's largest co-operative and
mutual enterprises, On the first Saturday of July each year, the ICA coordinates
celebrations of International Co-operative Day.