AGRICULTURAL
COOPERATION
AND ITS
HISTORY
• Meaning of
cooperation
• Cooperation is a voluntary association
of persons for achieving a common
goal. It generally means working
together for a common goal.
• It indicates joint effort and coordinated
action of all members of the association
.
CO-OPERATION Your Logo or Name Here 2
Definition
• According to Sir. Horace Plunkett .
• Cooperation is self –help made effective by organization.
• Cooperation hepls in protecting the weak, providing equal
justice to all and promotes welfare of the society.
• The motto of cooperation is:
‘Each for all and all for each’.
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The origin and
history of
cooperative
movement in India
It is divided into two
eras.
1. Pre-independence
Era.
2. Post-independence
Era.
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Pre-Independence Era
• The cooperative movement in India during pre- independence era can be
divided into 4 phases:-
1. Initiation phase (1904-1911)
2. Modification phase (1912-1918)
3. Expansion phase(1919-1929)
4. Restructuring phase (1930-1946)
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Initiation Phase
• In older days credit service was dominated by non- institutional
financial agencies( i.e private money lenders) charging maximum
interest rate from farmers.
• In extreme conditions or out of disterss the poor farmers have to
sell their field’s to clear their debts.
• This hazardous situation triggered revolts by the farmers against
the private money lenders in certain areas like Pune and
Ahemadanagar of Maharashtra attracted the attention of
government.
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Immediately the government passed three
acts:-
1. Deccan Agriculture Relief Act.
2. Land Improvement Loan Act.
3. Agriculturist Loan Act.
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Modification phase(1912-1918)
• It provided legal protection to all types of cooperatives.
• Liability is limited in the case of primary societies and
unlimited for Central societies.
• As this act of 1912 gave provision for registration of all
types of cooperative societies it led to the emergence of
rural cooperatives both on credit and non credit
fonds.But this growth was uneven spatially i.e. localized
in some areas only.
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Expansion phase(1919-1929)
• This phase was considered as “golden era "for the cooperative
movement in India.
• Cooperative movement got momentum as the
cooperatives became provincial subject under Montague
Chelmsford Act 1919.
• The economic prosperity during the period 1920-1929
also contributed to the growth of cooperative
movement.
• During the same period,The birth of Land Mortgage
Banks(LMB) took place first in Punjab(1924) subsequently in
Madras(1925) and in Bombay(1926). 9
Restructing Phase(1930-1946)
• In the year 1932,Indian Central Banking Enquiry Committee also
emphasized shortcomings with reference to undue delays in advancing
loans and inadequacy of credit
• In 1932,Madras Cooperative Societies Act came into existence aiming at
the growth of the cooperative movement
• Madras Cooperative Land Mortgage Banks Act(1934) came into force
for the development of long-term credit
• Excessive and abnormal fall in prices of agricultural commodities and the
economic depression of early thirties lead to the collapse of the cooperative
movement
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2. Post-Independence Era:
-
Planning commission was established in March, 1950, prepared first five year
plan in (1951-1956)main objectives with regard to cooperatives were
*Involvement of cooperatives in rural development
programmes.
• Development of well organized credit system.
• Extending cooperatives to the fields of farming, industry, housing,
marketing etc.
• Training of higher level personnel engaged in cooperatives. 11
. During the year 1951, All India Rural Credit Survey
Committee (AIRCSC) appointed under the chairmanship
of Sri. A.D. Gorwala .
. He pointed out two main drawbacks of cooperative
credit. They were:-
1.Cooperative credit was unevenly distributed.
2.Cooperative credit was inadequate and mostly lent to
the asset-oriented large cultivators rather than small and 12
marginal farmers.
The recommendations of AIRCSC were: -
• State govt. partnership in cooperatives at all levels.
• There should be coordination between cooperative
credit, marketing and processing.
• Development of adequate warehousing.
• Giving adequate training for cooperative personnel
engaged at all levels
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Second five year plan (1956-1961)
. on the recommendations of All India Rural Credit
Survey Committee during the year 1956, National
Cooperative Development and Warehousing Board
(NCDWB) was established.
.Apart from this, the second five year plan initiated the
setting up of producers' cooperatives and processing
cooperatives.
During the year 1959, the Committee on Cooperative
Credit under the chairmanship of Sri. V. L. Mehtha opined
that the membership in a cooperative should not be too
large and each village falling under the service area of 14
the cooperative should be at a distance of less than 3-4
Third five year plan (1961-
1966): -
● The emphasis was placed on the revitalization of dormant societies
apart from increased emphasis on cooperative credit and
cooperative farming.
● During this period National Cooperative Development Corporation
(NCDC) was established in 1963 and also National Federation of
Cooperative Sugar Factories (NFCSF).
● All India Rural Credit Review Committee (AIRCRC) was constituted
during July, 1966 under the chairmanship of Sri. B. Venkatappaiah.
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Tenth five year plan ( 2002 -2007)
The following initiatives were taken with respect of cooperatives during
tenth five year plan:-
● To study the regional disparity in the development of cooperatives,
identify the factors inhibiting the development of cooperatives in the
states and suggest suitable programmes for encouraging
cooperatives in the cooperatively underdeveloped states.
● To suggest measures for human resource development in the
cooperatives.
● To review the role and functioning of consumer cooperatives and
suggest suitable measures for their improvement 16
Submitted by:-
123339780072
123339780074
123339780075
123339780076
123339780077 17
Thank
you
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