discuss the role of cooperatives in rural areas
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India is mainly an agrarian society with more than half of its population still residing in the villages. Rural sector is the major contributor to the overall GDP of the nation and hence lack of development in villages means lack of development in India. Cooperative societies are playing significant role in this and share a major credit in the growth of rural sector which along with government and private sectors contribute to the overall economy of India. Cooperatives cover more than 97%of Indian villages, some run by its members and some by the government
Needs of rural people are served by different forms of private and government organizations including partnership firms, co-operatives, companies and charitable trust. Government each year spends lakhs to crores of rupees on rural development. But co-operatives working in rural areas are playing noteworthy role in this. Gujurat’s Dairy co-operative and Maharashtra’s sugar co-operative prove their contribution.
Cooperatives originated in the West during the middle of the last century and from there these came to India. Formally co-operatives were introduced to India in 1904 when the Indian Co-operative Societies Act was promulgated. Moreover rural indebtedness was the major force behind the initiation of chit funds and cooperatives in India. Initially these were just to provide credits to the farmers in the form of credit societies and gradually these start working in other fields such as banking, processing and marketing. The meager funds of farmers were pooled in to run cooperative and it was an attractive way to solve their financial problems. After independence role of cooperative societies grew to encompass socio-economic development and eradication of poverty in rural India. It became an integral part of five year plan. With this co-operative societies became a fundamental part of our economy
Needs of rural people are served by different forms of private and government organizations including partnership firms, co-operatives, companies and charitable trust. Government each year spends lakhs to crores of rupees on rural development. But co-operatives working in rural areas are playing noteworthy role in this. Gujurat’s Dairy co-operative and Maharashtra’s sugar co-operative prove their contribution.
Cooperatives originated in the West during the middle of the last century and from there these came to India. Formally co-operatives were introduced to India in 1904 when the Indian Co-operative Societies Act was promulgated. Moreover rural indebtedness was the major force behind the initiation of chit funds and cooperatives in India. Initially these were just to provide credits to the farmers in the form of credit societies and gradually these start working in other fields such as banking, processing and marketing. The meager funds of farmers were pooled in to run cooperative and it was an attractive way to solve their financial problems. After independence role of cooperative societies grew to encompass socio-economic development and eradication of poverty in rural India. It became an integral part of five year plan. With this co-operative societies became a fundamental part of our economy
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