Agricultural Cooperation
Meaning
Agricultural cooperation refers to the voluntary collaboration of farmers to achieve mutual economic goals. Farmers come together to pool resources, share inputs, and access financial and technical support. This collective effort empowers especially small and marginal farmers to become self-reliant, productive, and market-efficient.
Brief History of Cooperative Development in India
- In 1904, the Cooperative Credit Societies Act was enacted to curb rural indebtedness by providing affordable institutional credit to farmers.
- The Cooperative Societies Act of 1912 expanded the scope beyond credit to include all kinds of cooperatives.
- Post-Independence, the Five-Year Plans emphasized the cooperative model for rural development.
- The National Cooperative Development Corporation (NCDC) was set up in 1963 to promote cooperatives across sectors.
- In 1984, the Multi-State Cooperative Societies Act allowed cooperatives to operate across state boundaries.
- The 97th Constitutional Amendment in 2011 gave cooperatives constitutional status, reinforcing democratic functioning and autonomy.
Objectives of Agricultural Cooperatives
- To provide accessible and timely credit to farmers.
- To supply high-quality seeds, fertilizers, and inputs at fair prices.
- To facilitate collective marketing, storage, and processing.
- To reduce dependency on exploitative moneylenders.
- To promote thrift and savings among rural populations.
- To support skill development, awareness, and adoption of modern technology.
- To uplift rural livelihoods through employment generation and inclusive development.
Principles of Cooperation
- Voluntary and Open Membership: Cooperatives are open to all without discrimination.
- Democratic Member Control: One member, one vote ensures equality in decision-making.
- Member Economic Participation: Members contribute and control capital democratically.
- Autonomy and Independence: Cooperatives are self-governed and free from external interference.
- Education and Training: Members and employees receive training to improve efficiency.
- Cooperation Among Cooperatives: They work together at various levels to strengthen the movement.
- Concern for Community: They promote sustainable and inclusive development.
Significance of Cooperatives in Indian Agriculture
- Empower small and marginal farmers by increasing their bargaining power.
- Ensure fair prices through collective procurement and marketing.
- Enhance rural credit delivery through decentralized mechanisms.
- Promote technology adoption and infrastructure creation.
- Enable integrated rural development and poverty reduction.
- Boost agricultural productivity and rural employment.
- Foster financial inclusion and reduce regional disparities.
Types of Agricultural Cooperative Societies in India
1. Credit Cooperative Societies
These societies provide credit facilities to farmers at affordable rates. They operate at three levels:
- Primary Agricultural Credit Societies (PACS) – Operate at the village level and serve individual farmers.
- Central Cooperative Banks (CCBs) – Work at the district level and finance PACS.
- State Cooperative Banks (SCBs) – Apex bodies at the state level.
2. Marketing Cooperative Societies
These societies help farmers to sell their produce at better prices by eliminating middlemen. They offer grading, standardization, warehousing, transport, and direct linkage with buyers or government procurement agencies.
3. Consumer Cooperative Societies
These societies procure consumer goods in bulk and sell them at reasonable rates, especially in rural areas. They ensure availability of daily essentials and agricultural inputs, thus curbing inflation and profiteering.
4. Multi-purpose Cooperative Societies
These are integrated cooperatives that offer multiple services like credit, input supply, marketing, warehousing, and extension services. They help in the holistic development of agriculture and reduce the need for multiple institutions.
5. Farmers' Service Societies (FSS)
FSS are established to meet the integrated needs of small and marginal farmers. They provide credit, supply of inputs, extension, mechanization, marketing, and training. They play a key role in empowering rural communities and ensuring inclusive growth.
6. Processing Cooperatives
These cooperatives process raw agricultural produce into finished goods, adding value and enhancing income. Examples include sugar cooperatives, dairy cooperatives (like AMUL), oilseed processing units, and rice mills. They promote agro-industrial development and employment.
7. Farming Cooperatives
In farming cooperatives, members pool their land and other resources to cultivate crops collectively. This helps in efficient use of land, water, machinery, and labor. It also allows the adoption of scientific farming practices and better economies of scale.
8. Warehousing Cooperatives
These cooperatives offer storage facilities to farmers, helping them avoid distress sales and ensuring better price realization. They also provide loans against stored produce and facilitate safe storage, grading, and packaging.