8.
INTRODUCTION
A co-operative society is a voluntary association of individuals having common needs
who join hands for the achievement of common economic interest. Its aim is to serve
the interest of the poorer sections of society through the principle of self-help and
mutual help. The main objective is to provide support to the members. Nobody joins a
cooperative society to earn profit. People come forward as a group, pool their
individual resources, utilise them in the best possible manner, and derive some
common benefit out of it. A Co-operative Society can be formed as per the provisions
of the Co-operative Societies Act, 1912. At least ten persons above of 18 years,
having the capacity to enter into a contract with common economic objectives, like
farming, weaving, consuming, etc. can form a Co-operative Society. Cooperative
Societies Act is a Central Act.
A Co-operative form of business organisation has the following advantages:
Formation of a co-operative society is very easy compared to a joint stock company.
Any ten adults can voluntarily form an association and get it registered with the
Registrar of Co-operative Societies. Open Membership: Persons having common
interest can form a co-operative society. Any competent person can become a member
at any time he/she likes and can leave the society at will. Democratic Control: A co-
operative society is controlled in a democratic manner. The members cast their vote to
elect their representatives to form a committee that looks after the day-to-day
administration. This committee is accountable to all the members of the society.
Limited Liability: The liability of members of a co-operative society is limited to the
extent of capital contributed by them. Unlike sole proprietors and partners the
personal properties of members of the co-operative societies are free from any kind of
risk because of business liabilities. Elimination of Middlemen’s Profit: Through co-
operatives the members or consumers control their own supplies and thus,
middlemen’s profit is eliminated. State Assistance: Both Central and State
governments provide all kinds of help to the societies. Such help may be provided in
the form of capital contribution, loans at low rates of interest, exemption in tax,
subsidies in repayment of loans, etc. Stable Life: A co-operative society has a fairly
stable life and it continues to exist for a long period of time. Its existence is not
affected by the death, insolvency, lunacy or resignation of any of its members.
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8.1 PROCESSING CO-OPERATIVE SOCIETY
8.1.1 Definition of Processing Cooperative Society
A processing cooperative society is a type of cooperative formed to process
agricultural produce before it reaches consumers. These societies aim to provide
satisfaction to consumers on a cooperative principle by processing food grains and
commercial crops. For example, they might produce jaggery and sugar from
sugarcane, cotton bales from raw cotton, or edible oil from oil seeds.
8.1.2 Significance of Processing Cooperatives in India
Processing cooperatives play a crucial role in India's agricultural sector. They help
eliminate middlemen, provide employment opportunities, encourage rural
industrialization, and offer services and facilities for producer members. By
processing agricultural produce, these cooperatives ensure that farmers receive better
prices for their products, thereby improving their economic conditions. They also
contribute to the overall economic growth of the country by promoting rural
industrialization and providing employment opportunities.
8.1.3 National Organizations and Their Efforts
Several national organizations are involved in strengthening processing cooperatives
in India:
Ministry of Cooperation: Established in 2021, this ministry aims to strengthen the
cooperative movement in the country by creating appropriate policy, legal, and
institutional frameworks. It focuses on promoting cooperative-based economic
development and deepening the reach of cooperatives to the grassroots level.
National Cooperative Development Corporation (NCDC): This organization
provides financial assistance and support for the development of cooperatives,
including processing cooperatives. It plays a significant role in promoting
cooperative-based economic development.
National Cooperative Union of India (NCUI): NCUI works towards the promotion
and development of cooperative societies in India. It provides training and education
to cooperative members and helps in the formulation of policies for the cooperative
sector.
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National Bank for Agriculture and Rural Development (NABARD): NABARD
supports the cooperative sector by providing financial assistance and implementing
various schemes to strengthen cooperatives. It also focuses on the computerization of
Primary Agricultural Credit Societies (PACS) to enhance their efficiency and
transparency.
8.2 PRADHAN MANTRI FORMALISATION OF MICRO FOOD
PROCESSING ENTERPRISES (PMFME) SCHEME
This is a centrally sponsored scheme in India that provides financial, technical, and
business support to micro food processing enterprises. The scheme was launched in
2020 to support the "Vocal for Local" campaign. Features of the scheme are:-
• Provides financial support for technology upgradation
• Helps existing enterprises become formal
• Supports groups like Farmer Producer Organizations (FPOs), Self Help
Groups (SHGs), and Producers Cooperatives
• Helps with marketing and branding
• Provides support for common infrastructure
• Helps with capacity building and training
8.3 ORGANIZATION PROFILE
Genesis
The National Cooperative Development Corporation (NCDC) was established by an
Act of Parliament in 1963 as a statutory Corporation under the Ministry of
Cooperation.
Functions
Planning, promoting and financing programmes for production, processing,
marketing, storage, export and import of agricultural produce, food stuffs, certain
other notified commodities e.g. fertilisers, insecticides, agricultural machinery, lac,
soap, kerosene oil, textile, rubber etc., supply of consumer goods and collection,
processing, marketing, storage and export of minor forest produce through
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cooperatives, besides income generating stream of activities such as poultry, dairy,
fishery, sericulture, handloom etc.
NCDC Act has been further amended which will broad base the area of operation of
the Corporation to assist different types of cooperatives and to expand its financial
base. NCDC will now be able to finance projects in the rural industrial cooperative
sectors and for certain notified services in rural areas like water conservation,
irrigation and micro irrigation, Agri-insurance, agro-credit, rural sanitation, animal
health, etc.
Loans and grants are advanced to State Governments for financing primary and
secondary level cooperative societies and direct to the national level and other
societies having objects extending beyond one State. Now, the Corporation can also
go in for direct funding of projects under its various schemes of assistance on
fulfilment of stipulated conditions.
Organisation & Management
The Management vests in 51 members widely represented General Council to give
shape to its policies and programmes and Board of Management with 12 members to
cater to day-to-day activities. Besides its Head Office, NCDC functions through 18
Regional/State Directorates. The Managing Director is the Chief Executive. Various
functional divisions look after the programmes. The field offices play an important
role in project identification/formulation and oversee its implementation. NCDC is
endowed with in-house technical and managerial capabilities in the areas of
Cooperation, Organisation & Methods, Financial Management, Management
Information Systems, Sugar, Oilseeds, Textiles, Fruits & Vegetables, Dairy, Poultry
and Livestock, Fishery, Handlooms, Civil Engineering, Refrigeration and
Preservation to help cooperatives to identify/formulate projects and successfully
implement them.
8.4 OBJECTIVES OF THE STUDY
1) To study socio-economic profile of member farmers
2) To assess the impact of Cooperative society on its member farmers
3) To identify problems faced by Members & its Board of Management
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9. REVIEW OF LITERATURE
1. To study the socio-economic profile of members of farmers
Chaudhary et. al (2021) conducted study on “Socio-economic Profile of
Cooperative Society Members and Non-members in South Gujarat” on total
560 respondents and found that the education level was higher in cooperative
society members as compared to the non-members. The average land holding
was higher in cooperative society members as compared to non-members.
Majority of the cooperative society members (63.57 %) were in medium level
of social status whereas 40.00 per cent non-members in low social status
category. Majority of the cooperative society members (57.86 %) were having
high annual income whereas 40 per cent of the respondent non-members were
having low annual income. 43.57 per cent of the cooperative society members
were having membership in more than one organization and majority of the
respondents (88.57 %) were having no membership.
Singh [Link] (2021) conducted study on “A Study on Socio-economic Profile of
the Dairy Farmers in Central Plain Zone of Uttar Pradesh” highlighted that
majority of the respondents (46.97%) were from the age group of 36-50 years
followed by the 33.33 per cent of the respondents, who belonged to more than
50 years age group and near about one fifth of the respondents (19.70%) were
belonged to the age category of upto 35 years.
2. To assess the impact of Cooperative society on its member farmers
Nepal and Tiwari (2017) conducted study on “Assessment of Impact of
Cooperative on Livelihood of Its Members in Mid-western Development
Region of Nepal” and found that Cooperatives play a vital role in poverty
reduction and livelihood improvement through collective effort, self-help, and
democratic governance. They enhance assess to credit, increase landholding,
and improve agricultural productivity. Studies show that cooperative
membership leads to higher income and expenditure, fostering socio-economic
growth. Additionally, cooperatives promote inclusivity by eliminating
discrimination based on caste, gender, or religion. Their success depends on
strong institutional frameworks and active member participation. The socio-
economic status of cooperative members has changed through income
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generation activities. In this study, the assessment shows that the income and
expenditure both have increased after membership.
Chopade (2017) conducted study on “Impact analysis of farmer producer
company on its memebers” in Osmanabad district in Marathwada region of
Maharashtra and found that post joining the FPC, members experienced
notable economic benefits. Before joining, 84.17% had annual incomes
between ₹27,5400 and ₹340,195. In terms of expenditure, 84.17% spent
between ₹11,418 and ₹161,927 annually before joining the FPC. Prior to FPC
membership, 85.84% of respondents had annual savings ranging from ₹15,137
to ₹214,647, indicating a substantial saving capacity among members.
3. To identify problems faced by Members & its Board of Management
Vilhekar and Walke (2023) conducted study on “The Journey of Cooperatives in
India amidst Challenges: Way Forward” and highlighted that with the
development, this sector faced a various challenges like lack of professionalism in
management, an outdated cooperative legislation, more control and interference
by the government, issues with elected leadership, inability to attain financial
viability, absence of incentive structures based on performance, internal structure
and environment not adjustable or friendly to the growth and development of
cooperatives as business enterprise. Constraints can be overcome by giving
training to the members on management and skills which can be useful to them in
professionally management of the society. There is need to increased the members
contribution so that society can become a financially strong enough. Increased
used of digital technology, sales promotional activities like powerful
advertisements, personal selling, disseminated selling, common branding of the
different products will increased the sale of the product along with will give the
identity to the product in the market.
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Singh et. al (2017) conducted study on “Constraints Faced by Women Dairy
Cooperative Society Members in Jaipur, Rajasthan, India” total 120 respondents were
selected for the study. The ex-post facto research design was followed and found that
major constraints recorded were lack of awareness about advantage and facilities
provided by the Government and milk unions for rearing animals, lack of knowledge
about the women rights for their empowerment, illiteracy, lack of affordability to
purchase feed additives and concentrates, high cost of veterinary medicines and
inequality in issuing loans. The study also revealed that economic constraints was
ranked first with a mean score of 3.06 followed by technological constraints (2.87),
infrastructural constraints (2.74), social constraints (2.73), political constraints (2.69),
organizational constraints (2.62), psychological constraints (2.56) and personal
constraints (2.54).
10. MATERIALS AND METHODS
This study will be conducted in Rawatbhata tehsil of Chittorgarh district (Rajasthan).
Primary and secondary data will be collected to fulfil the objectives of study.
10.1 AREA OF THE STUDY
The study will be conducted on Jawra Gram Seva Sahakari Samiti in Rawatbhata
tehsil.
10.2 SOURCE OF DATA
The required data for study will be collected through primary survey as well as from
different secondary sources.
Primary data: The data required will be collected from respondents through
structured schedule by convenience sampling method.
Secondary data: The required data will be collected from different journals, review
papers, as well as from government agencies.
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Research design:
Type of Research Descriptive research
Sampling method Non-probability sampling
Sampling technique Simple random sampling
Sample unit Cooperative Society members and it’s Board members
Sample size 100 Cooperative Society members and 10 Board
members
Sample area Rawatbhata tehsil of Chittorgarh district, Rajasthan
Timing of survey 60 days
Research instrument Semi-structured schedule
Analytical tools Tabular representation, percentage analysis, Henry Garrett
ranking method
Analytical tool
1. To study socio-economic profile of member farmers
Tabular analysis will be used to study this objective.
2. To assess the impact of Cooperative society on its member farmers
Descriptive Statistics:- Use mean, median, standard deviation, and percentage analysis
to summarize the socio-economic variables (e.g., income, productivity, assets, etc.)
before and after joining.
3. To identify problems faced by Members & its Board of Management
Henry Garrett ranking method:-
Garrett ranking technique will used to rank the preference indicated by the respondents
on different factors. The respondents will be asked to assign the rank for all factors and
the outcomes of such ranking have been converted into score value with the help of the
following formula:
Per cent position = 100 (Rij – 0.5)
Nj
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Where,
Rij = Rank given for the ith variable by jth respondents
Nj = Number of variables ranked by jth respondent
11. REFERENCES
Chaudhary, M. V.; O. P. Sharma and Chaudhary, K. L. (2021). Socio-economic Profile of
Cooperative Society Members and Non-members in South Gujarat. International
Journal of Current Microbiology and Applied Sciences. 10(02), 27-31.
Chopade, S. L. (2019). Impact analysis of farmer producer company on its
memebers (Doctoral dissertation, Vasantrao Naik Marathwada Krishi Vidyapeeth,
Parbhani).
Nepal, G., & Tiwari, L. (2017). Assessment of Impact of Cooperative on Livelihood of Its
Members in Mid-western Development Region of Nepal. SSRG International Journal
of Humanities and Social Science, 4(4).
Singh, A. K., Singh, A. K., & Maji, S. (2021). A Study on Socio-economic profile of the
dairy farmers in central plain zone of Uttar Pradesh. International Journal of Current
Microbiology and Applied Sciences, 10(1), 988-995.
Vilhekar, R., & Walke, M. S. (2023). The Journey of Cooperatives in India amidst
Challenges: Way Forward.
Virendra Singh, S.K. Rewani, Sunil Rajoria and Saini, G.R. (2017). Constraints Faced by
Women Dairy Cooperative Society Members in Jaipur, Rajasthan, India. International
Journal of Current Microbiology and Applied Sciences. 6(12): 2612-2618.
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