Co-operative societies are known by the names of public corporation co-operative undertaking etc. A cooperative society is an association of people who cooperate voluntarily for their mutual benefit. There are many benefits and limitations in Co-operative societies. So in this article let’s know more about Co-operative societies in India.
What Is Co-operative Society?
The literal meaning of the word cooperative is to work together, that is, such people who work together for the same economic purpose can form a cooperative society, this is called a cooperative society.
A cooperative society means working together, The purpose of forming this society is that the people who participate in it establish a cooperative society for a common purpose.
We can assume that a cooperative society is like a bank, in which the collective savings are kept and they get loans at low concessional rates. The people who form these committees do not save for their own benefit but for the collective benefit. In this, similar people come together and build it with a view to expand their business and earn profit.
As a result of the economic and social crisis caused by the industrial revolution, in India in the year 1960, under the chairmanship of Edward Law, the organization of cooperative society was arranged on the basis of a proposal, on the basis of the proposal, the Cooperative Credit Act was passed in 1904, many capitalists In countries like the United States of America and Japan, cooperatives have brought progress in the country.
Features of Cooperative Societies:
The features of cooperative societies are…
It is a voluntary organization in which any person can become a member at any time and can voluntarily leave the membership.
The membership of a co-operative society is open to all persons having similar interests and objectives, besides membership is not restricted on the basis of gender, race, caste, and religion.
A legal entity:
It is mandatory for a cooperative undertaking to be registered under the Co-operative Societies Act, 1912 or the Co-operative Societies
Act of the State Government:
A cooperative society has a separate and distinct legal entity from its members.
The capital is contributed by all the members of the cooperative society and if the organization is registered then it can take loans as well and grants can also be obtained from the government.
The main objective of a cooperative society is to serve although it may also generate reasonable profits and a member has only one vote no matter how many shares he holds.
Types of Co-operative Societies:
There are different types of cooperative societies. These are…
Consumer Co-operative Societies:
These societies have been formed with the aim of protecting the interests of the consumers. They eliminate middlemen from the distribution process by purchasing goods directly from producers and manufacturers, thus the goods reach the consumers directly from the producers at a lower price. Like central store and state store etc.
Producer Co-operative Societies:
These committees help the producers of small and medium-scale industries by supplying raw materials, machinery, equipment, etc. Like Bionica, Haryana Handloom etc.
Marketing Co-operative Society:
These societies are made up of small producers and manufacturers who cannot sell their products themselves. The cooperative society takes the responsibility of collecting goods from all these members and selling them in the market. Like Amul milk, Sanchi milk, etc.
Cooperative Financial Committees:
This type of cooperative society provides financial assistance to the members and assistants. The society collects capital from the members and in case of being registered, from the state government and provides loans at appropriate interest rates in times of need. Like Village Service Cooperative Society and Cooperative Society etc.
Vegetarian Housing Cooperative Society:
These housing societies are formed with the aim of providing residential houses to their members. These societies purchase land, arrange houses and plots, and allot them to their members.
Benefits of Co-operative Society:
Co-operative societies have many benefits. These benefits are…
It is a voluntary organization. Any member can join it voluntarily and can also leave the membership at any time. It is found in both capitalist and socialist economic sectors.
Elimination of profit of middlemen:
Consumer members of the cooperative society have their own control over the supply of their goods. The goods are purchased by the members directly from the producers, thus the middlemen are eliminated.
In a cooperative society, the liability is limited to the capital invested by them. Unlike sole proprietorship and partnership firms, the personal assets of the members of cooperative societies are not exposed to business liabilities.
The office of the co-operative society is permanent. There is no difference in the existence of the society even in the event of death, bankruptcy, insanity, or resignation from membership of any member.
Co-operative society is operated in a democratic manner, its management is democratic and is based on the unanimity of one person’s ideology.
Limitations of Cooperative Society:
There are some limitations of a Cooperative society. See below the limitations of operative societies.
Lack of motivation:
Sir, the objective of a cooperative society is not to earn profit but to do service work, due to which the members are not able to work with great enthusiasm and full spirit.
The members of the cooperative society in the organization are only people from a particular section of the society, hence the capital invested by them is also limited.
Co-operatives pay less wages to their employees as they have a limited amount of capital due to which the organization faces management-related problems.
Lack of mutual harmony:
Co-operative societies are formed with the spirit of mutual harmony, but circumstances change with time, as a result, differences, arrogance, fighting, and tension remain among the members of the organization. Due to this attitude of the members, the organization is closed. become
No member can be forced to do any work in a cooperative organization. The success of the cooperative society depends on the loyalty and working style of its members.
6 Top and Best Co-Operative Societies in India:
Agriculture and allied sectors: National Cooperative Development Corporation (NCDC), National Agricultural Cooperative Marketing Federation of India (NAFED), Indian Farmers Fertilizer Cooperative Limited (IFFCO), AMUL and Cooperative Rural Development Trust (CORDET).
Banking Sector: Punjab and Maharashtra Cooperative (PMC) Bank, Bharat Cooperative Bank and Saraswat Cooperative Bank.
Amul is a cooperative milk products company. The full name of AMUL is Anand Milk Union Limited. It was established in 1946 with the help of freedom fighter Tribhuvandas Patel. This is one of the primary dairy cooperative societies.
From North India to South India and from West to East, the one thing that you will find in the kitchen of every home is Amul butter. The story of the formation of Amul Dairy, which produces Amul butter, is also full of inspiration. This dairy started in a small village. The Amul company was established in view of the exploitation of farmers before independence. It also faced tough competition from other brands, but even today Amul products are used in almost every household in the country.
Horticultural Producers’ Cooperative Marketing and Processing Society (HOPCOMS):
Horticultural Producers’ Cooperative Marketing and Processing Society or HOPCOMS is one of the important cooperative societies in India. This a cooperative society for farmers. In the year 1965 HOPCOMS is founded. The headquarters of this society is in Lalbagh, Bengaluru. This society operates in Bangalore, Mangalore, Mysore, Kolar, Mandya, and Tumkur, districts. The main activity of this society is to maintain a marketing system that ensures the farmer gets the right prices for their products and also the consumers get good quality things. This society also has a fruit juice processing industry. This is one of the cooperative marketing societies
Anyonya Co-operative Bank Limited:
One of the co-operative banks in India is Anyonya Co-operative Bank Limited. The headquarters of this bank is in Vadodara, Gujrat. The bank was founded in 1889 under the name Anyonya Sahayakari Mandali Co-operative Bank Limited. The main objective of the bank is to provide the residents of Baroda funds to stop exploitation by moneylenders. This cooperative bank started with 23 members. By 2006, it had grown to more than 23,000 shareholders.
Indian Farmers Fertiliser Cooperative Limited (IFFCO):
The Indian Farmers Fertilizer Cooperative Limited (IFFCO), the world’s largest cooperative, may have started exporting Nano Urea, but two Danish scientists have questioned the efficacy of the product as claimed by the manufacturer. On the domestic front, questions have been raised at many places on Nano Urea, but for the first time, at the international level, someone has given rise to controversy regarding it.
Kerala Dinesh Beedi Workers’ Central Co-op Society:
Kerala Dinesh Beedi Workers’ Central Co-op Society was founded in 1969. This cooperative society is the result of the worker’s movement against the exploitation of private capital. The Kerala Dinesh Beedi Workers’ Central Co-op Society is based o Kannur and the region of Kerala.
The Kerala Dinesh Beedi Workers’ Central Co-op Society products are Dinesh Umbrella, Dinesh Apparels, Dinesh Software, KERA milk, Dinesh Beedi, and Dinesh Foods.
Orissa State Cooperative Milk Producers’ Federation
The Odisha State Cooperative Milk Producers Federation is a state government cooperative under the ownership of the Ministry of Cooperation, Government of Odisha. It is an apex-level Milk Producers’ Federation in Odisha registered under the Cooperative Society Act – 1962. The main objective of the Odisha State Cooperative Milk Producers Federation is to promote the production processing and marketing of milk & milk products. This is one of the top Indian dairy cooperative societies.
A cooperative society is a type of organization in which individuals collect and maximize their resources for economic benefit on the basis of their will and get benefits and distribute them among themselves. This is a self-service organization of such persons who work for the protection of their economic interests. This committee works on the principle of self and mutual help. No person on this committee works for the purpose of personal gain.
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