Farmers’ service cooperative societies

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 area of operation of these societies is SFDA and MFAL districts.

❑ 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.

❑ One full- time Managing Director is deputed by lead bank.

❑ 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-

❑ Sponsorship- lead bank of the district

❑ Capital structure- members, lead bank and state GOI.

❑ 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.

Important functions of FSS are:

 ➢ To supply all types of loans i.e. crop loans (ST), MT and LT loans to weaker sections.

➢ 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.

Types of cooperative farming

(a) Cooperative Joint Farming Society:

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.

(b) Cooperative Better Farming Society:

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.

(c) Cooperative Tenant Farming Society:

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.

(d) Cooperative Collective Farming 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.

The advantages of co-operative farming

(I) Reduces the cost of production

(II) Easy access to farm inputs

(III) Increased production

(IV) Increases farmers’ bargaining power

(V) Creates social links

Disadvantages of co-operative farming

Limited capital

Corruption of leaders

Sentimental attachment to their lands

Envy and jealousy

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.,

❖ (1) National Cooperative Development and Warehousing Board

❖ (2)State Warehousing Corporation(SWC) and

❖ (3) Central Warehousing Corporation (CWC).

❖ The National Cooperative Development and Warehousing Board had been changed
into National Co-operative Development Corporation by retaining co-operative
warehousing with it.

❖ Co-operative warehousing covers a big village or a group of small villages covered

by a storage capacity of 500 Mts.

Warehousing

Warehousing refers to the activities involving storage of good on a large scale in

scientifically , systematically and orderly manner and making them available conveniently
when needed. Mean holding or preserving good in huge quantities from of their purchase or
production till their actual use or sale. A warehouse is a building for storing goods.
Warehouses are used
by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
Stored goods can include any raw materials, packing materials, spare parts, components, or
finished goods associated with agriculture, manufacturing, and production. In India and Hong
Kong, a warehouse may be referred to as a "godown

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

Warehousing offers many advantages to the business community. Whether it is industry or

trade, it provides a number of benefits which are listed below.

i. Protection and Preservation of goods - Warehouse provides necessary facilities to

the businessmen for storing their goods when they are not required for sale. It provides
protection to the stocks, ensures their safety and prevents wastage. It minimises losses
from breakage, deterioration in quality, spoilage etc. Warehouses usually adopt latest
technologies to avoid losses, as far as possible.
ii. Regular flow of goods - Many commodities like rice, wheat etc. are produced during
a particular season but are consumed throughout the year. Warehousing ensures regular
supply of such seasonal commodities throughout the year.
iii. Continuity in production - Warehouse enables the manufacturers to carry on
production continuously without bothering about the storage of raw materials. It helps
to provide seasonal raw material without any break, for production of finished goods.
iv. Convenient location - Warehouses are generally located at convenient places near
road, rail or waterways to facilitate movement of goods. Convenient location reduces
the cost of transportation.
v. Easy handling - Modern warehouses are generally fitted with mechanical appliances
to handle the goods. Heavy and bulky goods can be loaded and unloaded by using
modern machines, which reduces cost of handling such goods. Mechanical handling
also minimizes wastage during loading and unloading.
vi. Useful for small businessmen - Construction of own warehouse requires heavy
capital investment, which small businessmen cannot afford. In this situation, by paying
a nominal amount as rent, they can preserve their raw materials as well as finished
products in public warehouses.
vii. Creation of employment - Warehouses create employment opportunities both for
skilled and unskilled workers in every part of the country. It is a source of income for
the people, to improve their standards of living.
viii. Facilitates sale of goods - Various steps necessary for sale of goods such as inspection
of goods by the prospective buyers, grading, branding, packaging and labelling can
be carried on by the warehouses. Ownership of goods can be easily transferred to the
buyer by transferring the warehouse keeper’s warrant.
ix. Availability of finance - Loans can be easily raised from banks and other financial
institutions against the security of the warehouse-keeper’s warrant. In some cases
warehouses also provide advance to the depositors of goods on keeping the goods
x. Reduces risk of loss - Goods in warehouses are well guarded and preserved. The
warehouses can economically employ security staff to avoid theft, use insecticides for
preservation and provide cold storage facility for perishable items. They can instal
fire-fighting equipment to avoid fire. The goods stored can also be insured for
compensation in case of loss.

NAFED

(NAFED) is an apex organization of marketing cooperatives for agricultural produce in

India. It was founded on the birthday of Mahatma Gandhi on 2 October 1958 to promote the
trade of agricultural produce and forest resources across the nation. It is registered under
Multi State Co-operative Societies Act.

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.

Chaiman of NAFED : Bijender Singh

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;

(7) to undertake manufacture of agricultural, machinery and implements, processing, packing,

etc.

(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;

(9) to arrange for the training of employees of marketing/ processing/supply cooperative

societies;

(10) to establish processing units for processing of agricultural, horticultural and forest
produce, wool and allied products;

(11) to undertake grading, packing, standardization, scientific treatment and process of

agricultural produce and other articles;

Organisation
National Cooperative Development Corporation (India)

The National Cooperative Development Corporation (NCDC) is a statutory Corporation set

up under an Act of Indian Parliament on 13 March 1963.

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.

Headquarters : New Delhi

Functions of NCDC

• Planning, promoting and financing programmes for production, processing,

marketing, storage, export and import of agricultural produce, food stuffs, certain
other notified commodities e.g. fertilisers, insecticides, agricultural machinery, lac,
soap, kerosene oil, textile, rubber etc., supply of consumer goods and collection,
processing, marketing, storage and export of minor forest produce through
cooperatives, besides income generating stream of activities such as poultry, dairy,
fishery, sericulture, handloom etc.

• 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 Management vests in 51 member widely represented General Council to give

shape to its policies and programmes and Board of Management with 12 members to
cater to day-to-day activities.

• Besides its Head Office, NCDC functions through 18 Regional/State Directorates.

• The Managing Director is the Chief Executive.

• Sources of Funds of NCDC includes market borrowings and allocations from

Government of India including International assistance.

The National Cooperative Union of India, (NCUI)

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;

✓ Organise cooperative education and training programmes and popularise the

principles and practices of cooperation;

✓ organise, conduct, collaborate and assist in carrying out research, investigations of

cooperative problems and formulation of projects for cooperative development;
✓ arrange for the production and publication of literature and audio-visual aids
including films, filmstrips on cooperation and allied subjects;

✓ give publicity to the achievements of cooperatives through periodicals, journals,

newspapers, pamphlets, brochures, books, films, broadcasts, T.V. and the like for
creating favourable atmosphere for the development of the cooperative movement;

✓ maintain an information bureau and a library;

✓ 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;

International Co-operative Alliance (ICA)

The International Co-operative Alliance (ICA) is a non-governmental co-operative

federation or, a co-operative union representing co-operatives and the co-operative
movement worldwide. The Alliance provides a global voice and forum for
knowledge, expertise and co-ordinated action for and about co-operatives.The
members of the Alliance are international and national co-operative organisations
from all sectors of the economy, including agriculture, banking, consumer, fisheries,
health, housing, insurance, and workers. It was founded in 1895

✓ Headquarters :Belgium

✓ Members : 313 federations

✓ Area served : global

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.