Question

types of cooperative organisation​

Answer 1

QUESTION

types of cooperative organisation

ANSWER

Types of Cooperatives:

Cooperatives may be formed in all walks of life. Some of them are concerned with the moral and social uplift of a weak section of the people, while many of them combine some business activ­ity with service to members.

ADVERTISEMENTS:

The principal types of business cooperatives are:

1. Cooperative Credit Societies:

Cooperative Credit Societies are voluntary associations of peo­ple with moderate means formed with the object of extending short-term financial accommodation to them and developing the habit of thrift among them.

Germany is the birth place of credit coopera­tion. Credit cooperation was born in the middle of the 19th century. Rural credit cooperative societies were started in the villages to solve the problem of agricultural finance.

The village societies were fed­erated into central cooperative banks and central cooperative banks federated into the apex of state cooperative banks. Thus rural cooperative finance has a federal structure like a pyramid. The primary society is the base. The central bank in the middle and the apex bank in the top of the structure. The members of the primary society are villagers.

In the similar manner urban cooperative credit societies were started in India. These urban coop­erative banks look after the financial needs of arti­sans and labour population of the towns. These urban cooperative banks are based on limited li­ability while the village cooperative societies are based on unlimited liability.

National Bank for Agriculture and Rural De­velopment (NABARD) has been established with an Authorised Capital of Rs. 500 crores. It will act as an Apex Agricultural Bank for disbursement of agricultural credit and for implementation of the programme of integrated rural development. It is jointly owned by the Central Govt. and the Reserve Bank of India..

2. Consumers’ Cooperative Societies:

28 Rochedale Pioneers in Manchester in UK laid the foundation for the Consumers’ Cooperative Move­ment in 1844 and paved the way for a peaceful revo­lution. The Rochedale Pioneers who were mainly weavers, set an example by collective purchasing and distribution of consumer goods at bazar rates and for cash price and by declaration of bonus at the end of the year on the purchase made.

Their example has brought a revolution in the purchase and sale of consumer goods by eliminating profit motive and introducing in its place service motive. In India, consumers’ cooperatives have re­ceived impetus from the govt, attempts to check rise in prices of consumer goods.

3. Producers’ Cooperatives:

It is said that the birth of Producers’ Cooperatives took place in France in the middle of 19th century. But it did not make satisfactory progress.

Producers’ Cooperatives, also known as indus­trial cooperatives, are voluntary associations of small producers formed with the object of elimi­nating the capitalist class from the system of in­dustrial production. These societies produce goods for meeting the requirements of consumers. Some­times their production may be sold to outsiders at a profit.

There are two types of producers’ cooperatives. In the first type, producer-members produce indi­vidually and not as employees of the society. The society supplies raw materials, chemicals, tools and equipment’s to the members. The members are sup­posed to sell their individual products to the soci­ety.

In the second type of such societies, the member-producers are treated as employees of the soci­ety and are paid wages for their work.

4. Housing Cooperatives:

Housing coopera­tives are formed by persons who are interested in making houses of their own. Such societies are formed mostly in urban areas. Through these soci­eties persons who want to have their own houses secure financial assistance.

5. Cooperative Farming Societies:

The coop­erative farming societies are basically agricultural cooperatives formed for the purpose of achieving the benefits of large scale farming and maximizing agricultural output. Such societies are encouraged in India to overcome the difficulties of subdivision and fragmentation of holdings in the country.

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