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INDUSTRIAL CO-OPERATIVES

TY B.M.S

INTRODUCTION Industries are the drivers of economy of a country. They provide goods & services, employment opportunities & provide for the growth of the nation’s economy. Since ancient times, especially from the days of Britisher’s, the emphasis on industrial development has been very significant. Mahatma Gandhi encouraged the domestic industry by launching the swadeshi movement. Industries like handloom, khadi, coir, pottery, handicrafts etc. have been there for a long time in our history. India is a country with lakhs of village & an economy based on rural earning. Therefore, the development of these villages was considered very important, especially during post independence period. Hence, special attention was paid to the growth &development of industries located in village. This growth could be achieved only through the development of the cottage & handloom industries &other villages based industries. Hence, the need for co-operative organization was realized which would help bring all people together to achieve their common objective of self-development. Thus, industrial cooperative were formed. An industrial co-operative is an association of workers & craftsmen involved in cottage or village industries, who come together to undertake collective production, processing & marketing of goods manufactured by the members & provide them with the necessary services & assistance.

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Industrial co-operative can be defined as ‘A co-operative organized by workers, controlled by worker & managed by workers for meeting their common purpose’. Thus, an industrial co-operative is an association of workers, wherein all activities are undertaken by the workers and is formed purely to benefit them, socially and economically.  Role of Industrial Co-operatives The role of co-operatives in the sphere of industrial development has been recognised. An average industrial worker, particularly in rural areas, does not possess sufficient capital for installing improved type of machinery. Apart from this, he requires raw material and working capital for running his unit. After production of goods, their sale at such prices as can bring adequate return to the worker, is equally essential. In short, credit, raw material and marketing of finished gods are three important requirements of an industrial worker. The best solution of these difficulties seems to be organisation of co-operatives of industrial workers. It provides two distinct advantages : requisite facilities by the Government and the pooling of capital and skill. The industrial co-operative movement has made considerable progress in the district. The industrial co-operatives governing hosiery goods are the most organised and 90 per cent of the

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production of hosiery co-operatives in the country is from Ludhiana. The other co-operative of note cover cycle-parts, sewing-machine parts, etc.

 Aims and Objectives The main objectives of forming a cooperative can be classified into two main types, i.e., the social and economic objectives. While forming an industrial co-operative, the members will have certain social and economic objectives. These objectives are: 1.

Social Aim: Social Aim is to safeguard workers interest and to protect them from exploitation by the capitalist and the traders. Thus the social aim is to render services to the members as well as the society.

2.

Economic Aim: The second aim is Economical, which focuses mainly on creation of employment. There is lot of disguised unemployment and many layoff stages for the worker in a year. This spare time can be made productive due to the industrial co-operatives.

INDUSTRIAL CO-OPERATIVES

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 Objectives of Industrial Co-operatives: 1. To develop self-reliance, co-operation and selfrespect among the members. 2. To purchase and supply raw materials, tools and equipments needed by the workers. 3. To obtain contracts from the government and other organization. 4. To purchase machinery and other equipments required by members and to hire them to the members for quality production. 5. To grant advances if needed by member workers against the securities of raw materials and finished products. 6. To construct take on rents godowns for storage of finished products and raw materials. 7.

To undertake all such activities needed for the welfare and well being of the member and the society.

 Role of Industrial Co-operatives in India The earliest attempt to introduce the cooperative method for solving rural economic problems was made in 1904 when the then

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British Government passed the Co-operative Credit Societies Act. The object of the Act was to encourage thrift, self-help and co-operation amongst agriculturists, artisans and persons of limited means. However, in the industrial field also the principle of co-operation has been accepted as a method to help small industrialists, artisans, craftsmen, etc. in increasing their productive capacity and financial resources. Industrial co-operatives are generally formed by artisans, craftsmen, industrial workers and small industrialists. These are limited liability concerns, the liability normally extending to the value of the shares. During the first two FiveYear Plans, 1951-56 and 1956-61, the industrial co-operatives made a definite progress. Weavers co-operatives have been established on a firm footing under the guidance of the All-India Handloom Board. The latter provides the cooperatives with Government grants and loans and helps in strengthening the marketing organization. It further helps the movement in building up its internal resources by increasing the share capital. Most of the funds for industrial co-operative societies are available from co-operative banks. Credit facilities are also given by private entrepreneurs. The co-operative societies also get subsidies, grants-in-aid and loans from

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Government for the purchase of machinery, equipment, raw materials, etc. Considerable attention is being paid to the introduction of improved tools and techniques amongst industrial co-operative societies by different all-India and State organizations. Cooperative Industrial Estates are also being development where sites are made available to members with common facilities like workshops, exhibition houses, industrial museums, quality marking units, testing and finishing units, godowns, sample rooms and similar services. Thus, the industrial co-operative play a vital role in the development of village industries.

TYPES OF INDUSTRIAL CO-OPERATIVE SOCIETIES 1.

Industrial Production Society: Under the production co-operatives the societies undertake production of goods in their workshops by

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employing member workers. eg. The Bhavani Metal Industrial Co-operative Society located at Gulkekadi in Pune City. The workers in the society are paid wages on daily basis while the entire responsibility of production and marketing is undertaken by the society. 2.

Industrial service co-operative society: In this type the production activities such as providing raw materials, handling of tools and equipments, technical guidance are done by the members. In certain societies even the marketing of products are done by the members.

3.

Common facility workshop society: Certain industrial co-operatives have established common facility workshop for the use of their members. The members produce the goods and make use of the workshop for finishing work and other technical work. They have to pay a rent for the use of the facility. E.g. the Hupari Silver Workers Co-operative Society in Kolhapur district.

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 Other Co-operatives 1. Workers co-operatives These are businesses that are owned exclusively by the employees. Some are set up as new ventures, some are conversions from existing businesses, and others are viable replacements for failed companies. 2. Community co-operatives Social responsibility and concern for the community are fundamental co-operative values. Many organisations that provide care for elderly, ill or disabled people, child care or other beneficial local services choose a co-operative structure that allows employees, clients and community representatives to become members. 3. Secondary co-operatives Often groups of self-employed people or businesses can benefit from sharing facilities, equipment or marketing costs. A co-operative provides the ideal legal framework for this. Example of secondary co-operatives includes taxi drivers. 4. Credit unions These are financial co-operatives that are directly owned and controlled by their members, who are the savers and borrowers. Most credit unions have a community common bond, which

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means that they serve a specific geographic area. Some credit unions are based at the member’s place of work and therefore have a workplace common bond.

 Organization Structure 5. Co-operative 1. 2. 3. 4. National State Central Level and Federation Federations Primary Industrial of Industrial Industrial Specific EstatesCoType Cooperatives of operative Industrial Societies Co-operatives

 National Federation of Industrial Cooperatives NFIC was established in the year 1966 with the objective of studying industrial co-operatives in

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relation to the problems they face and to suggest solutions. The NFIC also plays a major role in formulating and implementing programs relating to the development of industrial cooperatives. It also undertakes import, purchase and distribution of raw materials, equipments and components to the industrial co-operatives. It also helps in rendering marketing services to the members. The head quarters of NFIC is situated in New Delhi.

 National Federation of Specific type of Industrial Co-operatives These federations are national level institutions catering to the needs of specific industrial cooperatives. They mainly look after the marketing problems of the co-operatives.  State Level Federations State level institutions for industries like khadi, handloom, handicrafts, etc. have been set up for supporting the rural artisans and weavers by providing product design, distribution and promotional support.  Central and Primary Industrial Cooperative Societies The central level co-operatives are present in certain states and function at the district level. The primary industrial co-operatives also function at the district level. These institutions

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function at the grass roots level in close coordination with the industrial co-operatives.  Co-operative Industrial Estates Co-operative industrial estates are basically industrial areas, developed in order to allow members to set up workshops, small factories etc. to undertake industrial activities.

BENEFITS OF INDUSTRIAL CO-OPERATIVES 1. The society provides better opportunities to the members.

employment

2. Training and knowledge is given to the members to develop their skills and be more productive. 3. The workers can procure the necessary raw materials and equipment through the cooperatives. 4. Marketing and sale of the goods may be handled by he co-operative, thus ensuring the right returns to the members.

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5. The most important reason for set-up is that industrial co-operatives are very beneficial to the society as a whole because of the benefits it transfers to the members in the form of higher income, better employment opportunities and social security.

PROBLEMS OF INDUSTRIAL CO-OPERATIVES 1.

Problem of Human Resource: Most industrial co-operatives are situated in rural areas and also are scattered all over the country. They are financially weak and thus it is not possible for them to appoint trained personnel to look after the management, thus they have to manage with unskilled and inefficient staff, which leads to deterioration in quality.

2.

Problem of production: Co-operatives face a major production problem due to raw materials as its supply is very unstable and inadequate. Co-operatives get the least

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preference when it comes to raw materials, thus hindering constant production. These fluctuations lead to increase in the price. 3.

Problem of Marketing: Industrial cooperatives are extremely weak in marketing and sales promotion. They lack the finance and the capability to undertake aggressive marketing activities, due to which they are unable to increase sales.

4.

Lack of member education: Members lack the knowledge and education about working in co-operatives. Thus, they are unable to understand the principles and methodology of the co-operatives.

5.

Lack of support from higher institution: Industrial co-operatives lack adequate support from the higher institutions and are unable to render much help and guidance to the primary and grass roots level co-operatives.

6.

Lack of loyalty of members: Many cooperatives have failed mainly due to the selfish objectives of the members, who use the co-operative for meeting their own needs rather than the objectives of the cooperatives.

7. There are also some more problems such asInadequate supervision and inspection

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8. Lack of proper planning 9. Lack of audit controls 10.Problem of Finance 11.Vested interest  Kinds of Industrial Co-operative 1. Handloom 2. Handicraft society 3. Leather co-operative 4. Oil-crushing 5. Coir co-operatives 6. Other industrial co-operative  Handloom co- operatives: The Handloom sector plays a very important role in the country’s economy. It is the largest economic activity after agriculture providing direct and indirect employment to more than 30 lacs weavers. The average annual production of various handloom products through this handloom weavers is around Rs.500crore. Handloom sector is largely dependent on the organized mill sector for supply of its principal raw material, namely, yarn. This sector uses the bulk of its yarn in the form of hanks. The Central Government has been making efforts to ensure regular supply of yarn to the handloom sector at reasonable prices through-(a) Hank Yarn

INDUSTRIAL CO-OPERATIVES

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Obligation Scheme; (b) Loan assistance to the National Cooperative Development Corporation (NCDC) for setting up of new/expansion/modernization of weavers’ cooperative spinning mills; and (c) scheme for supply of yarn to handloom weavers at mill-gate prices. Out of which 35% production is being procured by Co-optex, a State Level Handloom Cooperative Marketing Organization through its various showrooms in the country and the rest production of about 65% is being sold by weavers’ societies through other means. Handloom Weavers' Cooperative Society Ltd. popularly known as CO-OPTEX. Due to effective State Government intervention through financial assistance and implementation of various developmental and welfare schemes, this sector has been able to withstand the competition from the powerloom and mill sectors. As a result of these measures the production of handloom fabrics registered more than ten-fold increase from a level of 500 million sq. meters in the early fifties to 7862 million sq. meters in 1997-98. The anticipated production for 1998-99 is 7170 million square metres. This sector contributes nearly 22 per cent of the total cloth produced in the country and also contributes substantially to the export income of the country. Handlooms form a part of the heritage of India and exemplify the richness and diversity

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of our country and the artistry of the weavers. The office of the Development Commissioner for Handlooms has been implementing, since its inception in the year 1976, various schemes for the promotion and development of the handloom sector and has been providing assistance to the handloom weavers in a variety of ways. Co-operative coverage is limited to only 30 per cent of the total weavers. inadequate enforcement of and the challenging of the Handloom Act of 1985 in several High Courts and the stays granted to the powerloom operators by these Courts has rendered the Law ineffective and encroachment on handloom products still continues. The inherent weeknesses of the handloom industry like weak organisation, officialisation of handloom cooperatives, inadequate marketing infrastructure etc. have made it more vulnerable to competition from the organised mills and the decentralised powerloom sector. Steep increase in cotton yarn prices, build up of unsold stock and delayed payments to primary societies by apex societies, etc. further deteriorated weavers' condition.  Handicrafts: No special type of handicrafts exists in the Gurdaspur District. Phulkari and baag making was an important handicraft in the past, but gradually, with the advancement of mechanism, this work has almost been neglected by the

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village women. Hand knitting and embroidery work is, however, still carried on. This is also called topa work. During the Second Five-Year Plan (1956-61), industrial training institutes were established at various places in the district to impart training to women in embroidery, tailoring, knitting, etc. The dealers from Amritsar and Ludhiana supply cloth through their middlemen and get the work done from the village women. Remuneration being not attractive, the industry is on the decay.

 Oil-crushing: Oilseeds occupy a prominent position in the agricultural economy. India is one of the leading oilseed producing countries, being perhaps the only country in the world, having the largest number of commercial varieties of oilseeds. Oilseeds and edible oils are two of the most sensitive agricultural commodities in the country. India contributes about 9% of the world oilseeds production, about 7% of the global production of protein meal and is the 4th largest edible oil economy in the world. The total area under oilseed cultivation in the country stood at 22.78 million ha. in 2001-02. The corresponding production was 22.80 million tonnes. Madhya Pradesh is the leading oilseed producing state in the country and accounts for 21.36% of the total oilseed production in the country. The other

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leading oilseed producing states are Gujarat (17.79%), Rajasthan (15.03%), Maharashtra (10.70%), and Andhra Pradesh (7.76%). The rest of the states account for the remaining 27.36% of the total production. Oilseeds, edible and non edible oil play an important role in the agricultural economy of the country. Groundnut, rapeseed/ mustard, soybean, sunflower, sesame, nigerseed, safflower, castor and linseed are the nine major oilseeds sources for obtaining edible and non edible grade oils. The secondary sources are coconut, cottonseed, rice bran, solvent extracted oils from tree and forest origin. Apart from oilseeds, the byproducts obtained during the processing operation viz. deoiled cakes, oilmeals and other minor oil products are also of high economic value. India is one of the leading oilmeal exporter in the world. Its share in the world oilmeal export market is about 7%. The export of oilmeals, oilseeds and minor oils for the financial year 2000-2001 stood at 29.07 lakh tons. In terms of value, realisation it stood at Rs. 3393 crore.  Flaying/Leather Tanning: This traditional industry, though important and beneficial for the country, was neglected by the people and very useful national resources had been allowed to be wasted by using old methods. The industry is carried on by the

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Chamar (Scheduled Caste) community. In 197172, 154 units were engaged in it in the district. These employed 399 persons and produced goods worth Rs 99,050.  Shoe-Making: It is an old traditional industry. The partition of the country in 1947 adversely affected it as the Muslim artisans migrated to Pakistan. Their place was, however, taken up by refugee artisans from Pakistan. The shoe-makers in rural areas generally produce shoes for local needs. To encourage the industry, the cooperative Department has set up shoe-making co-operative societies at some places. Besides, training centres are functioning at various places for imparting training to artisans. A Rural Industrial Centre for Leather Goods is functioning at Dhariwal. In 1971-72, 1,535 units were manufacturing leather goods including shoes in the district. These employed 1,778 persons and produced goods worth Rs 7,36,100.

 Carpentry and Black smithy:

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These are also traditional industries carried on in the rural areas. Blacksmith acts as useful link in the rural economy like the carpenter. He undertakes repairs of agricultural implements besides doing household jobs. The goods produced by such artisans are khurpas, sickles, wooden ploughs, etc. The payment of wages in some cases is made in kind during the crop seasons.  Ban and Rope Making Ban and rope making is also one of the traditional industries carried on by the villagers on primitive basis. The products are manufactured from sunn-hemp, munj and kai, which are mostly available near the bet areas of the rivers Beas and Ravi. The village folk have mostly been doing the job on part-time basis by hand process. It was during the First Five-Year Plan (1951-56) when ban and rope manufacturing machines (both operated by hand an power) were introduced and the Industries Department as well as the Punjab Khadi and Village Board extended financial help with a view to unlifting the artisans engaged in the line. The State Co-operative Department has also helped the industry by organising cooperative societies at some places in the district. In 1971-72, 510 units were engaged in the industry which employed 625 persons and produced goods worth Rs 3,50,000.

INDUSTRIAL CO-OPERATIVES

 Rice Husking, Extracting:

Flour

Milling

TY B.M.S

and

Oil

These industries received a serious set-back at the time of partition of the country in 1947 when Muslim artisans, known as telis, etc. migrated to Pakistan. The water logging, which adversely affected the production of oil seeds, caused further set-back to the oil industry. However, the All India Khadi and Village Industries Board is taking keen interest in the revival of the industry by setting up oil industrial co-operative societies at various places in the district, by imparting training and by providing financial facilities. Besides, modern type machinery (Wardha type kohlus ) is distributed in villages and facilities are provided for construction of sheds and godowns. In 1971-72, 45 units were engaged in the village oil industry in the district. These employed 90 persons and their production was worth Rs 1,15,000. Originally, flour milling was done on handdriven domestic chakkies, bullock-driven kharases and water operated gharats, but, with the advent of diesel engine and electric power, composite units for flour milling, rice husking,

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cotton ginning, cotton carding, etc. came into existence. Due to water logging in the district, paddy is grown in abundance, with the result tha t about 17 rice shellers, each with a capacity of 1 to 4 metric tones per day of eight hours, are functioning at Pathankot, Dinanagar, Gurdaspur, Batala, Dhariwal and Dera Baba Nanak. For the facility of rice shellers, run with the aid of electric power, at various places of the district, some units in the engineering industry have taken up the manufacture of rubber rolled rice huskers and paddy driers which have attracted orders from the rice shellers of other places too.



Baskets, Chicks and Straw Bottle Covers Making: These are also traditional industries, carried on in most of the villages in the district. Bamboo and mulberry sticks are the main raw materials used in the manufacture of chicks and baskets, respectively. These are available in plenty in Tahsil Pathankot. The demand for articles like cycle baskets, waste paper baskets, vegetable baskets and even articles of furniture made from bamboo is

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on the increase. There is, therefore, considerable scope for further development of the industry, provided adequate financial assistance is afforded to the manufacturers engaged in it. Straw covers for bottles are manufactured at Dinanagar and its surrounding villages and in the villages near Pathankot. These are supplied mostly to the breweries for packing purposes.  Sericulture: Sericulture is a useful part-time occupation for the tillers of land. This industry is mainly concentrated in Pathankot Tahsil and the surrounding areas where mulberry trees are available in abundance and rearing of silk seed on these trees is facilitated. The Industries Department has set up a sericulture organisation and a sericulture experiment laboratory at Sujanpur. At Dinanagar, the department has set up a big sericulture farm where mulberry trees have been grown. Training is imparted in rearing of silk worms and cocoons. The Government provides cocoons to the silk rearers at subsidised is also provided by the Government. 

Gur and Khandsari Making The industry exists almost in every village where sugarcane is grown. This is a seasonal

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industry and is mostly adopted by the cultivators. With the establishment of the Batala Co-operative Sugar Mills Ltd., Batala in 1956, restrictions were khandsari In 1971-72, 17 units were engaged in the production of gur and khandsari. These gave employment to 70 persons and produced goods worth Rs 1,50,000. 

Pottery: Pottery is an important village industry. It received a serious set-back on the partition of the country in 1947 when the Muslim artisans migrated to Pakistan and there was low influx of refugee potters in this district. However, in course of time, the industry got re-established.

 Ivory and Inlay Goods: Only one unit is engaged in the production of ivory and inlay goods in the district at Qila Darshan Singh, Tahsil Batala. In 1971-72, it gave employment to 10 persons and produced goods worth Rs 12,380. Besides, one unit in the small-scale sector manufactures plastic novelties and consumer goods.

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 Jail Industries The industries carried on in the District Jail, Gurdaspur, are : carpentry, munj and hemp, ban, cane, chick making, niwar making, basket, tat (sack-cloth), gur, cotton-testing, bookbinding, poultry, etc. The production and gross profit of these industries is given in the section on ‘Jails and Lock-ups’ of chapter XII, ‘Law and Order and Justice.’  Coir co-operatives: Traditional uses for the resilient and durable coir fiber include rope and twine, brooms and brushes, doormats, rugs, mattresses and other upholstery, often in the form of rubberized coir pads. In the 1980s and 90s, global exports of coir fiber fell by almost half, as Western consumers shifted to synthetic foam and fibers. Then, since 1990, rapidly growing domestic demand in India more than doubled global production benefiting exclusively the Indian coir industry. Finally, since 2001, a rising Chinese demand for coir, an expanding market for coirbased erosion control products, and the spread of coir pith as a peat moss substitute in horticulture has further pushed up global production and prices. In turn, other coconut growing countries, including Philippines, Thailand and Vietnam are now expanding their production and export of coir fiber. These changes are also reflected in the international trade in coir.

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With a view to assist the State Governments in their efforts to encourage the cooperatives in the coir industry by providing the share capital assistance, Managerial and marketing assistance apart from assistance for modernization, the Central Government had evolved a scheme for assisting the coir industry which aims at the formation of viable coir co-operatives and revitalization of the potentially viable, dormant societies and bringing the coir workers into the cooperative fold, so that the quality and quantity of production improves, the workers get better wages and full employment and the growth of the coir industry is put on a sound footing. The Centrally Sponsored scheme for the cooperativisation of the coir industry come into force with effect from 21st August, 1982 The scheme provides for:1. Share Capital assistance : To enable the Coir Cooperatives to draw adequate working capital from institutional sources to meet funding requirements for full scale production, share capital assistance/capital per member of primary cooperatives (engaged in retting coir extraction and spinning coir yarn) and product societies. 2.

Managerial Subsidy: Annual Managerial subsidy for placement of competent persons in supervisory/Management positions in the Primary Coir Cooperatives engaged in the production of coir fibre and coir yarn and

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weavers cooperative societies engaged in production of coir products, for five years and the Cooperatives should function on their own without any support from Government after the first five years. 3. Assistance for acquisition/modernization of equipments, improved machinery, looms by the primary coir cooperatives in the yarn sector and weavers cooperative societies engaged in the production of coir products, by way of loans and subsidy; and 4. Assistance to Integrated Coir Development Project of the Government of Kerala and similar schemes when received from other State Governments. The modalities with regard to Integrated Coir Development Project will be issued separately.

INSTITUTIONAL SUPPORT FOR CO-OPERATIVES 1. National Co-operative Development Corporation (NCDC) NCDC was set up in 1963, with the purpose of the development of the co-operative movement and to increase the scope of it at the national level.

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In 1962, the National Development Corporation Act was passed and it began its functioning in March 1963.  Role and Functions of NCDC: 1. To provide Loans and Grants to various cooperative societies. 2. To

provide

latest

technical

facilities

to

agricultural co-operative society through the respective state governments. 3. To participate in the share capital of the different co-operatives societies working at the National level. 4. To

utilize

the

National

Co-operative

Development Fund for various development activities of co-operative societies. 5. To prepare annual programs and to facilitate the implementation nation wide. 6. To

develop

co-operative

fields

like

processing, warehousing, import-export of agricultural commodities etc.

INDUSTRIAL CO-OPERATIVES

7. To

assist

state

TY B.M.S

government

in

Human

Resource Development. 8. To

assist

the

marketing

federation

for

establishment of promotional cells in order to provide financial and technical support in installation

of

processing

units

and

marketing activities. 2. Khadi And Village Industries Commission (KVIC) KVIC was setup in 1957.  Objective of setting up this commission was: a. To reduce the unemployment problem in India. b. To boost the Rural Economic Development through promotion of small village industries. c. To create awareness about the hidden struggle through promotion of Gandhian Values.  Activities of KVIC:

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a. To prepare programs on promotion of Khadi and Village Industries and implement those on a National scale. b. To help in training and development of village artisans and managers involved in this industry. c. To make arrangement for raw-material storage and to facilitate in the distribution of finished goods. d. To study the problems of village economies and to suggest recommendations. e. The commission provides assistance to industries like Tanning, Pottery, Paddy, Processing, Khadi Sari, Sugar and Jaggery. 3. National Dairy Development Board (NDDB) The successful program undertaken by Anand Milk Producer Union Ltd. encouraged the government of India to setup a National Level Board. Thus NDDB was setup in 1965. The main objective of the board is to replicate the Anand type all over the country. The World Food Program in 1970 helped the board with financial assistance of Rs120crores. This fund was for the development of Milk Supply Cooperatives. Finally this program was named ‘Operation Flood’.  Objectives

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a. To introduce the development program for development of dairy operation and also prepare program for agro-based industries by providing financial and technical aids. b. To assist setting up of Milk Societies under the Co-operative Sector. c. To conduct research on development agriculture and horticulture.

of

d. To provide necessary technical support for societies collecting, storing, selling milk and also producing various milk products. e. NDDB helps in construction of buildings, provision of machinery etc. in respect to dairy development. f. To provide consultancy services for management of co-operative milk producers societies. g. To advice the Government of India on Rural Development Programs. h. To help in export of dairy products and also to import technical goods. 4. National Bank for Agricultural And Rural Development (NABARD)

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NABARD is an apex institution accredited with all matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India. The committee to review arrangements for institutional credit for agriculture and rural development was setup by RBI under the chairmanship of Shri. Sivaraman to study the scope of rural finance. It recommend the establishment of a national bank which will deal exclusively for agriculture and rural development. Thus the Indian Parliament through the act 61 of 1981 approved the setting up of NABARD. The bank came into existence on 12th July 1982 and it was dedicated to the nation by the then Prime Minister Mrs. Indira Gandhi on 5th November 1982. NABARD took over the function of the erstwhile Agriculture Credit Department and Rural Planning and Credit Cell (RPCC) of RBI and the Agricultural Refinance and Development Corporation (ARDC). Its subscribed and paid up capital was Rs. 100 crores which was enhanced to Rs. 500 crores which was contributed by the Government of India and RBI in equal proportion. Today the subscribed and paid up capital is Rs. 2000 crore.

INDUSTRIAL CO-OPERATIVES

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a. NABARD is an apex institution, which performs the refinance function for the institution providing investment and production credit for promoting the various departmental activities in rural areas. b. It takes measures towards institution building for improving capacity of the credit delivery system, monetary, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel etc. It coordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with the Government of India, RBI and other national level institutions concerning with policy formulation. c. It prepares on annual basis, rural credit plans for all districts in the country. d. It promotes research in the fields of rural banking, agriculture and rural development.  Mission Promoting sustainable and equitable agriculture and rural development through effective credit

INDUSTRIAL CO-OPERATIVES

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support, related services, institution building and other innovative initiatives. 

Functions: a. To develop policy and plans with respect to matters relating to agriculture and allied activities. b. To undertake developmental activities in the rural areas. c. To

undertake

programs

for

training,

consultancy, research in respect to credit of agriculture and rural development. d. To provide refinance facilities to the RRB (Regional

Rural

Bank)

and

various

co-

operatives. e. Inspection of Banks. f. Coordination. 5. National Co-operative Federation (NCCF)

Consumer

The National Co-operative Consumer Federation is the highest body of consumer co-operative in India. It was formed in the year 1966.Its

INDUSTRIAL CO-OPERATIVES

TY B.M.S

headquarters are located in Delhi with branches in various cities such as Mumbai, Chennai, Kolkatta, Nagpur etc.



Chief Functions: a. To help and guide state federations in their operations. b. To act as the chief spokesman of consumer co-operative in India. c. To procure and distribute consumer products such as: (i)Pulses, spices, food grains, tea and other agricultural goods. (ii)Controlled cloth. (iii)Non-controlled

textiles

and

readymade

garments. (iv)Imported and confiscated goods. The federation maintains a consultancy and promotional cell, which is entrusted with the responsibility of farming operational and business procedures, administrative norms etc. It also publishes a monthly news bulletin, which

INDUSTRIAL CO-OPERATIVES

TY B.M.S

contains information on the market rates of goods supplied by the consumer co-operatives. 6. National Co-operative Housing Federation (NCHF) The National Co-operative Housing Federation (NCHF) was formed in the year 1969 as per the recommendations of a study group on cooperative housing. The state level and district level housing societies as well as the state level institution financing the housing societies can become a member of the National Co-operative Housing Federation (NCHF).

 Objectives: a. Publicity and propaganda of co-operative housing movement by publishing books, brochures etc. b. To undertake research and development work for reduction in the construction cost. c. To establish financial institution at state level to help the primary co-operative housing in getting loans at lower rate of interest. d. To involve institution like LIC and other central level financing institution in the co-operative housing movement. 6. National Federation Of Industrial Cooperatives (NFIC)

INDUSTRIAL CO-OPERATIVES

TY B.M.S

NFIC was established in the year 1966 with the objective of studying industrial co-operatives in relation to the problems they face and to suggest solutions. The NFIC also plays a major role in formulating and implementing programs relating to the development of industrial cooperatives. It also undertakes import, purchase and distribution of raw materials, equipments and components to the industrial co-operatives. It also helps in rendering marketing services to the members. The head quarters of NFIC is situated in New Delhi. 7. International Co-operative Alliance (ICA): International Co-operative Alliance is an independent non-governmental association which unites, represents and serves cooperatives worldwide. The ICA was founded in London in 1895. Its members are National and International Co-operative Organization in all sectors of activity including agriculture, banking, energy, industry, fisheries, housing, tourism and consumer co-operatives: ICA has more than 230 member organization from over 100 countries representing more than 730 million individuals worldwide. In 1946, the ICA was one of the 1st Nongovernmental organisations to be accorded UN’s Consultative Status. Today it is one of the 41 holding-holding category of consultative status with the UN’s economic and social council.  Aims of ICA:

INDUSTRIAL CO-OPERATIVES

TY B.M.S

The major objective of ICA is to promote and strengthen autonomous co-operatives throughout the world. ICA seeks to: a. Promote and Protect Co-operative Values and Principles. b. Facilitate the development of economic and other mutually beneficial relations between its member organisations. c. The economic and social progress of its members and their communities.  Specialized Organization under ICA a. International Co-operative Agricultural Organization (ICAO) b. International Co-operative Banking Association (ICBA) c. Consumer Co-operative International (CCI) d. International

Co-operative

Organization (ICEO)

Conclusion

Energy

INDUSTRIAL CO-OPERATIVES

TY B.M.S

India’s major population that is almost 70 percent still resides in the villages, thus it becomes imperative that the rural industry should develop for the overall development of our country. It is amazing to see that where government help cannot reach, the co-operatives had been formed by the masses due to common needs and difficulties. Industrial co-operatives essentially deals with handlooms, handicraft and other village industries. Industrial co-operatives not only provide employment but they offer an opportunity for the rural masses to start something on their own. With little seed capital, assistance and guidance from the Co-ops, people can become self sufficient. But these rural industries not only provide assistance but their products such as handloom cloth, handicraft, beautiful intricate potteries, hand made jewelry, paintings etc are in great demand overseas. Thus the small scale industries are have a huge potential of earning foreign currency. It is a common phenomenon that loans are given to people who already have money but there is little or no source of gaining capital for a poor entrepreneur or a person from village having no assets. The irony hits home hard when we realize that the situation is affecting 70 of our productive population, ie untapped source of income. As a result the government has taken certain steps to form institutions that give financial support to rural industries. NABARD, KVIC have been playing a vital role for hydrating the rural industries but still cooperatives need help and assistance.

INDUSTRIAL CO-OPERATIVES

TY B.M.S

Unless and until the importance of rural industry is realized progress of the entire country shall remain as a dream unfulfilled.

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