All India Cooperative Week 2024: A Celebration of Cooperation and Rural Development

Every year, All India Cooperative Week is celebrated from 14th to 20th November to recognize the efforts and contributions of cooperative societies in India. The year 2024 marks the 71st edition of this event, with the theme for the year being “Role of Cooperatives in Building Viksit Bharat”. This week highlights the significance of cooperative societies in the economic and social development of the nation, especially in rural areas.

The National Cooperative Union of India (NCUI), which is the apex body of the cooperative movement in the country, organizes this event. The NCUI plays a pivotal role in promoting cooperative societies and ensuring their growth. As of now, India has become the largest cooperative movement in the world.

The Evolution of Cooperatives in India

Cooperative societies in India have a rich history that dates back to the colonial era, when European countries first established cooperatives to provide credit and financial services to the public. The Raiffeisen cooperative model, developed in Germany, was later replicated in India under British rule to address the credit needs of poor farmers.

• 1903: The first credit cooperative society was established in India in the field of banking with the support of the Bengal Government.
• 1904: The Cooperative Credit Societies Act was passed in India to formalize and regulate cooperatives.
• 1919: Cooperation became a state subject, marking the beginning of a more structured cooperative system in India.
• 1938: The Land Mortgage Cooperative Banks were established to provide loans for land improvements and debt relief.
• 1962: The Registrar of Cooperative Societies became the custodian of cooperatives, leading to better management and regulation.

The cooperative movement in India has evolved from these early roots into a robust system that supports the rural economy and empowers the underserved sections of society.

Role of Cooperatives in Rural Development

India’s rural economy is still largely dependent on agriculture and allied sectors like dairy, fisheries, and handicrafts. Cooperatives play a transformative role in these sectors, contributing to both economic growth and poverty alleviation.

Agricultural Cooperatives

Agricultural cooperatives are crucial to India’s agricultural economy, providing credit, inputs, and market access for farmers.

• Credit Distribution: Agricultural cooperatives handle approximately 36% of the total agricultural credit in the country.
• Sugar Production: Cooperatives are responsible for procuring around 40% of India’s total sugarcane production, and sugar cooperatives contribute about 45% to India’s sugar production.
• Dairy Sector: The dairy cooperative sector has been one of the most successful in India. Cooperatives have helped India become the world’s largest producer of milk, with an annual production exceeding 220 million metric tonnes. This has significantly improved the livelihoods of rural families, particularly women.

Success in Rural Industries

The cooperative movement has not only benefited agriculture but also transformed various rural industries.

• Textile and Fisheries: Cooperatives have contributed to the growth of the textile and fisheries sectors, providing employment and supporting financial inclusion.
• Housing Cooperatives: Housing cooperatives have played a crucial role in providing affordable housing in rural areas, improving the living conditions of rural populations.

Cooperatives in India have also made significant strides in areas like rural credit, healthcare, and education, significantly enhancing the standard of living in rural areas.

Key Success Stories of Cooperatives in India

Several prominent cooperatives in India have exemplified the success and potential of the cooperative model in improving the rural economy and empowering local communities.

Indian Farmers Fertiliser Cooperative Limited (IFFCO)

Founded in 1967, IFFCO is one of the world’s largest fertilizer cooperatives. With a reach of over 5.5 crore farmers, IFFCO has become a global leader in the fertilizer industry, providing high-quality fertilizers at affordable prices and improving agricultural productivity.

AMUL: The Dairy Cooperative Revolution

Established in 1946 in Anand, Gujarat, AMUL has grown to become India’s largest dairy cooperative. Originally founded to eliminate exploitative middlemen, AMUL now serves millions of dairy farmers across India. With an annual turnover of over ₹38,542 crore (USD 5.1 billion), AMUL is a shining example of how cooperatives can empower rural communities and ensure fair trade.

Sittilingi Organic Farmers Association (SOFA)

SOFA, established in 2004, is a cooperative in the Sittilingi Valley of Tamil Nadu, focused on organic farming and marketing. Originally formed by just four farmers, it grew to 57 farmers by 2008 and later registered as a cooperative society. SOFA has contributed significantly to promoting organic farming and empowering tribal farmers.

Kerala Dinesh Beedi Workers’ Central Cooperative Society

Established in 1969, this cooperative in Kannur, Kerala, transformed the beedi industry by offering better wages, working conditions, and social security to workers, unlike their counterparts in the private sector who faced exploitation. The Kerala Dinesh Beedi Workers’ Cooperative became a model for worker welfare in India.

Karnataka Milk Federation (KMF)

The Karnataka Milk Federation (KMF) is one of the largest dairy cooperatives in South India, comprising over 2.25 million milk producers in the state. KMF has helped transform the rural economy of Karnataka, ensuring better livelihoods for farmers and improving dairy production.

The Future of Cooperatives in India

The cooperative movement continues to evolve and expand, becoming a cornerstone of India’s rural economy. However, challenges such as financial inclusion, access to credit, and technological advancements need to be addressed for cooperatives to reach their full potential.

Key Areas for Improvement

1. Technological Integration: Modernizing cooperative systems with digital platforms and technology will improve efficiency, transparency, and service delivery.
2. Financial Support: Continued support from financial institutions like NABARD and RBI is crucial to ensuring the growth and sustainability of cooperatives.
3. Training and Awareness: Educating rural populations about cooperative models and their benefits can lead to more active participation and development.

With these efforts, cooperatives will continue to play an essential role in India’s economic development, particularly in agriculture, rural industries, and poverty alleviation.