The term co-operation is derived from the Latin word co-operari, where the word ‘co’ means ‘with’ and ‘operari’ means ‘to work’. The International Cooperative Alliance (ICA) defines cooperatives as enterprises owned, controlled, and run by and for their members, emphasizing their role in meeting common economic, social, and cultural needs. Cooperatives, prioritizing people over capital, play a crucial role in fostering community business sense, enhancing social bonds, and contributing to inclusive economic growth. In 1995, International Cooperative Alliance (ICA), adopted the Revised Statement on Cooperative Identity which contains the definition of a Cooperative, the values of Cooperatives and the Seven Cooperative Principles. These Principles have been accepted universally.
The 7 Cooperative Principles are:
1. Voluntary and Open Membership
2. Democratic Member Control
3. Member’s Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Cooperation among Cooperatives
7. Concern for Community
Followings are some types of co-operative societies:
1. Consumers’ Co-operative Society: These societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution.
2. Producers’ and Processing Co-operative Society: These societies are formed to protect the interest of small producers by producing and processing the goods and services of their members. They aim to realize economies of scale by making available items of their need for production like raw materials, tools and equipment, machinery, etc. and supplying value-added products and services.
3. Co-operative Marketing Society: These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling and marketing those products in the market.
4. Co-operative Credit Society: These societies are formed to provide financial support to the members. The society provide loans at a reasonable rate of interest and flexible repayment tenure to its members in times of need and protect them against high rates of interest that are charged by private money lenders.
5. Co-operative Farming Society: These societies are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming.
6. Housing Co-operative Society: These societies are formed to provide housing facilities to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies also provide loans at low rate of interest to members to construct their own houses.
ADMINISTRATIVE & REGULATORY FRAMEWORK FOR COOPERATIVES IN INDIA
The Constitution (Ninety-seventh Amendment) Act, 2011 amended the Constitution of India and granted constitutional status to cooperative societies in India and made the following provisions:
(i) Right to form cooperative societies was included as a Fundamental Right by insertionof the words “cooperative societies” in Article 19(1)(c) in Part III (Fundamental Rights) of the Constitution of India.
(ii) Article 43B was inserted in Part IV (Directive Principles of State Policy) of the Constitution of India for promotion of cooperative societies which states “The State shall endeavor to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies”.
(iii) Part IX B titled ‘The Cooperative Societies’, was inserted in the Constitution of India, containing provisions for incorporation, regulation and winding up of co-operative societies.
The Seventh Schedule to the Constitution of India lays down the distribution of powers between the Union and State governments with respect to certain matters. Cooperative societies with objects confined to a single State fall under Entry 32 of List II (State list) of Seventh schedule of the Constitution of India for which states are competent to legislate. Accordingly, such societies are governed by respective State Cooperative Acts. Cooperative Societies with objects not confined to one State fall under entry 44 of List I (Union list) of Seventh schedule of the Constitution of India, for which the Parliament is empowered to make laws and accordingly Parliament has enacted Multi-State Cooperative Societies Act, 2002.
Presently, India has 29 primary cooperatives, namely:
1. Agriculture & Allied Cooperative
2. Agro-Processing/Industrial Cooperatives,
3. Bee Farming Cooperatives,
4. Consumer Cooperatives,
5. Credit and Thrift Society
6. Dairy Cooperative
7. Educational and Training Cooperatives
8. Farmer Service Societies (FSS)
9. Fishery Cooperatives
10. Handicraft Cooperatives
11. Handloom Textile and Weavers Cooperatives
12. Housing Cooperative Society
13. Jute and Coir Cooperative
14. Labour Cooperatives
15. Large Area Multi-Purpose Society (LAMPS)
16. Livestock & Poultry Cooperatives
17. Marketing Cooperatives,
18. Miscellaneous Credit Cooperatives
19. Miscellaneous Non-Credit Cooperatives,
20. Multipurpose Cooperatives
21. Primary Agricultural Credit Societies (PACS)
22. Sericulture Cooperatives
23. Social Welfare & Cultural Cooperatives
24. Sugar Mills Cooperatives
25. Tourism Cooperatives
26. Transport Cooperatives
27. Tribal-SC/ST Cooperatives
28. Urban Cooperative Banks (UCB)
29. Women’s Welfare Cooperatives
According to Second Schedule to the MSCS Act 2002 (read with section 3(r) and section 116 of the Act), the following are the National Cooperative Societies in India:
1. National Co-operative Agriculture & Rural Development Banks’ Federation Ltd., Mumbai
2. National Federation of State Cooperative Bank Limited, Mumbai
3. National Cooperative Union of India Limited, New Delhi
4. National Agriculture Cooperative Marketing Federation of India Limited, New Delhi
5. National Cooperative Consumer’s Federation of India Limited, New Delhi
6. National Federation of Cooperative Sugar Factories Limited, New Delhi
7. National Cooperative Housing Federation Limited, New Delhi
8. Indian Farmer’s Fertilizer Cooperative Limited, New Delhi
9. All India Federation of Cooperative Spinning Mills Limited, Mumbai
10. National Cooperative Dairy Federation of India Limited, Anand
11. All India Handloom Fabrics Marketing Cooperative Society Limited, New Delhi
12. National Federation of Urban Cooperative Banks and Credit Societies Limited, New Delhi
13. Krishak Bharati Cooperative Limited, New Delhi
14. National Federation of Fishermen’s Cooperative Limited, New Delhi
15. National Labour Cooperatives Federation of Limited, New Delhi
16. Tribal Cooperative Marketing Development Federation of India Limited, New Delhi
17. National Cooperative Organics Limited, Anand, Gujarat
18. Bhartiya Beej Sahakari Samiti Limited, New Delhi
19. National Cooperative Exports Limited, New Delhi
Author Bio
