CO-OPERATIVES

DEFINITION OF CO-OPERATIVES

The International Labour Organization (I.L.O) has defined co-operatio as an association of persons usually of limited means, who have voluntarily joinedtogether to achievea common end, through the formation of a democratically controlled business organization, making equitable contribution to the capital required and accepting a fair share of the risks and the benefits of the undertaking V. L. Mehta has defined co-operatives as only one aspect of the vast movement which promotes voluntary association of individuals having common needs who combine towards the achievement of common economic ends.

OBJECTIVES

Service to the people Equal distribution of Income and Wealth Monopoly in Control To increase the income of the people, thereby improving their economic conditions Reduction in the cost of production Protection of consumers Self-help and mutual help Development of certain economic activities Prevention of exploitation of working class To develop the backward classes and the under-privileged

Economic Development

Co-opeatives acts a backbone for economic development Played an active role in the empowerment of the rural areas Contributed in the development of economies all over the world In India co-operative played a major role in filling the gap left by the public and private sectors. The co-operative movement was strengthened by the combined efforts of Sardar Vallabhbhai Patel, Jawaharlal Nehru and Lal Bahadur Shastri

DEVELOPMENT OF INDIAN CO- OPERATIVE MOVEMENT 1st Stage (1904 1911):- Agriculture sector was affected due to famines and drought. Poverty Huge amount of debit taken from the local money lenders Co-operatives came into existence in 1904 to fight evils of the society and nation as a whole. The introduction of the co-operative credit society in 1904 provided legal base for the formation of credit society. It focused only on the credit provision for the agri-sector. 2nd Stage (1912 1918) :- Introduction of co-operative act of 1912. It focused not only on the credit aspects of co-operatives but all the other functions of the co-operatives. It gave a broad lay out for the formation of all types of co-operatives.

3rd Stage (1919 - 1929) :- Number of provisional committees were formed in order to regulate the cooperatives in their respective provinces. The committee played a major role in watching over the growth and development of the co-opeartives, and acting as a governing body. Oakeden Committee of Uttar Pradesh King Committee of Central Provinces and Bihar Townsend Committee of Madras Calvert Committee of Madras Royal Commission in 1928 for examining problems related to agriculture. 4th Stage (1929 1939) :- : Great depression hit the world. Sudden change in world economy. The prices of agriculture products fell and also the returns to the farmers. The growth of co-operatives was hampered RBI was created in 1934 and in 1935 Rural Credit Department was created in the bank which gave new life to the co-operative movement.

5th Stage (1939 1946): Impact of second world war. Much attention was paid to the non-credit societies Industrial co-opeartives assumed importance

6th Stage (1946 1970): After independence stress was given on co-operative. Nehru and Shastri stressed importance on the co-opeartives included in the 5year plans. Co-operatives were ecnouraged to enter into new sectors of rural economy. Their activities in the field of dairy, food processing, agro processing etc., 7th Stage (1970 2000) :- The government emphasized that the cooperatives have to develop the rural banking sector. Formation of NABARD as APEX Bank. Initiatives in replicating the Anand Pattern model for dairy co-operatives across the country. 8th Stage (2000 onwards):- WTO restrictions and threat from global competition Government provided adequate support and helped the co-operatives in building brands, distribution network and also in exporting the products to the global market.

Problems of co-operatives

Poor performance and loss of financial viability Lack of professionalism in management Excessive government control and political interference Lack of good leadership Loss focus on the prime objective and growing alienation Poor board management relations Lack of performance based reward systems and poor work environment Unlimited and limited liability

Needs to strengthen the co-operative movement in India

Forging a link among apex institutions supporting co-operatives Political interference should be reduced Co-operation among co-operatives Lack of education among members Vested interests among the members Lack of professional approach Increasing role of government to support co-operatives Replicating successful models Lack of proper planning and diversification

Sugar Co-operative

Sugar Industry in India is well maintained and is growing at a steady pace Maharashtra Sugar Industry is one of the most notable and large-scale sugar manufacturing sectors in the country. The Sugar industry in Maharashtra is highly popular in the cooperative sector, as farmers own a portion in the sugar factories. The Maharashtra sugar industry has been contributing nearly 40% of India's total sugar production. With innovative technologies being implemented in the Maharashtra sugar industry, the potential can be fully realized. Before Independence it remained mainly in the hands of joint stock companies & private industrialists

After Independence the Government of India, accepted co-operation as an end and means of economic planning
PRAVARA SUGAR FACTORY The first sugar cooperative of India was started in Maharashtra

Why were Sugar Co-ops started? Significance

The national sugar consumption was growing at the rate of 5 to per cent per annum but the land under sugarcane cannot expand at this rate. This target could be achieved by the cooperative sugar factories, as they are farmer oriented organizations. Play a crucial role during in the development of a country from the primary agricultural produce to an industrial economy.

Objectives of Sugar Co-operative

To cut and process the sugar cane produce of members and nonmembers in the area of operation. To manufacture sugar and supply to the government as per government directives. To enable modernization of farming and processing techniques, and empower the farmers to produce better quality sugar cane by providing them with various techniques to increase the yield. To conduct research and development in order to provide better quality of sugar cane and thus, a higher productivity for sugar. To carry out various welfare and social activities for the benefit of the members such as health facilities credit facilities, transport facilities (for transporting the produce) education, cultural activities etc.,

Leaders

Pravara Sahakari Sakhar Karkhana in 1949 was started by Padmashree Vithalrao Vikhe Patil with the support of Dr. D.R . Gadgil & V. L . Mehta heralded a real revolution in the sugar cooperative movement in Maharashtra. Y. B. Chavan & later Vasantdada Patil gave a thrust to the cooperative sugar industry as part of the governments industrial policy, as an instrument of regional development and dispersal of economic activities.

How are Sugar Co-ops linked with politics?- Political links

According to Prof S. S. Baviskar - The establishment of the first sugar cooperative in Maharashtra proved to be the beginning of economic development through politics The sugar industry is subject to economic, technological and political pressures. Each sugar cooperative in rural Maharashtra today is a powerful empire by itself.

How are Sugar Co-ops beneficial? - Benefits

Employment Generation Rural Development Favourable Economic Issues Exports & India in the World Market

CASE STUDY 1 The Vaidyanath Sahakari Sakhar Karkhana Ltd

Origin (1996 1999): The Vaidyanath Sugar Cooperative pledged to bring out socio-economic transformations in the industrially backward Parali and Ambajogai talukas of Beed district in the backyards of Marathwada. This is largely a drought-prone region of Maharashtra. Objectives : To serve as a centre for all round development of cane growers, peasants and workers in 145 villages of economically backward Parali and Ambajogai tehsils of Beed district in Maharashtra's Marathwada To strive upon bringing the factory's region on par with the developed of Western Maharashtra To utilise natural resources to improve the quality of life in the Beed region To create opportunities for the educated unemployed technicians through this industrial centre.

Achievements :- Crushed all the 2.6 lakh tonne cane from 4666 hectare registered in the jurisdiction of Vaidyanath factory Rushed to the rescue of growers in Renapur, Ahmedpur, Kej, Gangakhed, Sonpeth and Vadvani outside the jurisdiction of the factory, by crushing 2.5 lakh tonne Helped cane growers in keeping with the government's policies and social commitment, by crushing 1.1 lakh tonnes over and above the season's target of 4 lakh tonne cane Target for crushing exceeded even in absence of experienced technicians and efficient system of harvesting and transportation A national record of cane crushing and sugar production in a trial season, with crushing of 5.1 lakh tonne cane and production of 6.01 lakh quintal sugar in 220 days. Projects Undertaken 100 residential quarters were built for the factory employees. C type quarters: 6, d type quarters 30, e type quarters 84, f type quarters 40 Nursery school has been started since August 15, 1999 To fulfil the various needs of the factory employees, they are registered in the pathsanstha and loans are made available to them from Vaidyanath Urban Cooperative Bank Ltd To encourage reading and hence increase knowledge of the employees a library was started A hospital was set up in the factory premises On the occasion of the birthday of Honourable Gopinathrao Munde Saheb the following events were organized: blood donation, essay writing competition - 'Sakhar Karkhana Pragati Sathi Upaya Yojana' & rangoli competition. Failures: Lack of professionalism: Being a record breaker in sugarcane produce, but has a little lack of professionalism This Sugar cooperative sector is vulnerable to a lot of political interest It is seen there is an unhealthy competition between members of the society

CASE STUDY 2 The Yashwantrao Mohite Krishna Sahakari Sakhar Karkhana

Origin
It is an outcome of visionary and inspiring leadership of Honble Dr. Shri: Yashwantrao Mohite, an eminent leader, Social Worker and well known philosopher of this area along with his other pattrons. In 1936, efforts to start a co-operative sugar factory in this area were made by some local leaders to safe guard to the sugar cane producer farmers from exploitation in jaggaries and over all declining situation in Agricultural produce, prominent amongst them was late Shri: Madhavrao Mohite. However due to either or the reason, in fact the karkhana could come in to an existence in1957.

Karkhana within very short span of time has become a nucleus of integrated rural development in this area. Widely spread over Irrigation, Construction of bridges, dams and roads, industrilisation, education and health care are amongst the various objectives achieved under this rural development programme.
During the year 2006, Krishna Sahakari Sakhar Karkhana Ltd., Rethare Bk., Tal. Karad, Dist. Satara re-named as Yashwantrao Mohite Krishna Sahakari Sakhar Karkhana Ltd. It is an effort to express the gratitude and honour to Yashwantrao Mohite for his utmost devotion, towards the public Life and their well being throughout his life. At present Yashwantrao Mohite Krishna S.S.K.Ltd., Rethare ( Bk., ) is well known as closely knit well establishment since last more than 50 years.

Objectives:
Our aim is to put continuous efforts to improve socioeconomic status of share holders, employees and society in command area of factory by creating employment providing education and health service, through adoption of modern technology to improve efficiency of karkhana and production of quality products. Growing to Serve, Serving to Grow To utilise limited sugar cane produce with an favourable outcome

Projects undertaken:
For the convenience of senior and high school students studying in Parali provision of school buses is made at concessional rates Cultural and entertainment programs are conducted for the factory members Sports activities are held.

Failures:
As it is a very small sugar coop in Maharashtra they find difficult to pay for the sugar cane supplied by the farmers Its an old cooperative and is still using the old technology low installed production capacity leads to the decrease in production and losses

Problems faced by Sugar Co-operatives

Political Influence and interference Corruption De-zoning Shortage of Cane Losses

Sugar Lobby in Maharashtra

One of the most powerful most pampered lobbies, 110 sugar barons can make or mar Maharashtra politics. This lobby is both a vote-bank and a money-bank. In western Maharashtra, the Congress had a virtual stranglehold in districts like Kolhapur, Satara and Sangli. That changed when the BJP-Shiv Sena combine came to power. Moreover, Sharad Pawara product of the sugar lobbyturned towards the Centre, and the local Congress did not keep in touch. In return for supporting politicians, the lobby gets sweet returns. The establishment of the first sugar cooperative in Maharashtra proved to be the beginning of economic development through politics and leadership, according to Prof S. S. Baviskar. Sugar cooperatives mushroomed due to the encouragement given by the central and State Governments. The Central Government offered priority of cooperative sugar factories, while the State Government also provides guarantee against loans taken by the sugar factories from terms lending institutions and banks. Since the establishment of the Pravara Cooperative, Sugar Cooperatives have been used in Maharashtra by the Government and the political leaders as instruments of rural development. They soon developed as centre of struggle for power. All sugar cooperatives came to be permeated with politics and became immerse in local-level politics. Politics was intimately related to the politics of the taluka and the district. The direct fall out of this political move was the strengthening of the Congress over a large number of sugar cooperatives.