This document discusses agricultural cooperatives in India. It begins by defining cooperatives and outlining the Rochdale Principles of cooperation. It then describes the three-tier structure of cooperative credit institutions in India and provides statistical data on the number, membership, and finances of primary agricultural cooperatives from 1990-1991 to 2010-2011. The document highlights the roles of primary cooperative credit societies, district cooperative central banks, and state cooperative banks in India's cooperative system.

1. AGRICULTURAL FINANCE
AND CO-OPERATION
Ag. Econ.-201
ASSIGNMENT
Submitted by:-
ASHISH- 2015A14BVI
BALRAM-2015A15BVI
DAMINI-2015A16BVI
Submitted to:- DEVENDER-
2015A19BVI
Dr. Nirmal DEEPAK-2015A18BVI

2. ANALYSIS OF
PROGRESS AND
PERFORMANCE OF
COOPERATIVES
USING PUBLISHED
DATA

3. WHAT IS COOPERATIVE ?
 The word cooperative is composed of
two words ‘Co’ and ‘opus’. The word ‘co’
means together and ‘opus’ mean to
work.
 It generally means working together for a
common goal.
 It indicates joint effort of all the member
of a association.
 Ex: producer’s cooperatives, consumer’s
cooperatives, marketing cooperatives,
credit cooperatives, multipurpose
cooperatives societies etc.

4. Principles of Cooperation
(Rochdale Principles)
1. Principle of open and voluntary
association
2. Principle of Democratic Organization
3. Principle of service
4. Principle of self-help and mutual help
5. Principle of distribution of profits and
surpluses
6. Principle of political and religious
neutrality
7. Principle of education
8. Principle of thrift
9. Principle of publicity

5. Principle Of Open And Voluntary
Association
 The admission and membership in a
cooperative society is open to
everybody irrespective of cast,
religion, any social and political
affiliation.
 At any time one has every freedom to
withdraw from the society.

6. Principle Of Democratic
Organisation
 Each member is given equal right to
vote irrespective of his share capital in
society.
 “One man one vote” is important
principle of cooperation.
 Board of management work based on
acts, rules and laws guiding the
matters of co-operation.

7. Principle Of Service
 The cooperatives are more service
oriented rather than profit oriented.
 The spirit of service invokes loyality
among members.

8. Principle Of Self-help And Mutual
Help
 Society can borrow required capital
from different financial sources at
lower interest rates and offer the same
to the members for productive
purpose.
 Hence the cooperative work for
welfare of the members

9. Principle Of Distribution Of Profit
And Surpluses
 A certain amount of profits i.e. 25%
will be kept back as reserve fund and
the remaining 75% can be distributed
among the members based on their
contribution to the share capital.

10. Principle Of Political And
Religious Neutrality
 Members should continuously work for
the growth of society with un-
biasedness towards any religion and
political party.
 This help in the smooth running of
cooperatives.

11. Principle Of Education
 If the members in cooperative
societies are illiterate , their
participation is poor in running the
cooperative and they cannot
understand what is going on in the
society.
 Hence, first such type of illiterate
members should be made literate.

12. Principle Of Thrift
 It aims at inculcating the habit of
saving among the members.
 in sanctioning of credit , a priority
should be given to the member who
saves.

13. Principle Of Publicity
 The cooperatives should make sincere
efforts to tell their members about the
society and all the dealings of the
society should be make public.

14. Principle Of Honorary Service
 To have efficiency in the society ,
trained secretaries with salaries are
needed but if the society are started
with poor members , it is better to
have honorary office bearers, because
such societies cannot afford to pay
salaries to such office bearers.

15. Maxims of Co-operation
BETTER FARMING
BETTER BUSINESS
BETTER LIVING

16. Origin and History of Indian
cooperative movement
Pre-Independence Era:
1. Initiation phase(1904-1911)
2. Modification phase(1912-1918)
3. Expansion phase(1919-1929)
4. Restructuring phase(1930-1946)
Post-Independence Era:
 From first 5yr plan to tenth 5yr
plan(1951-2007)

17. Initiation phase (1904-1911)
 Dominance of non-institutional financial
agencies i.e., private money lenders.
 Charged very high interest rate from farmers
due to which in extreme cases poor farmers
have to sell their belongings to clear their
debts.
 Revolts in Poona and Maharashtra attract the
attention of government. Immidiately govt.
passes three acts viz.
Deccan Agriculture Relief Act(1879)
Land Improvement Act(1883)
Agriculturist Loan Act(1884)

18. Cooperative Credit Societies
Act(1904)
The recommendation of Edward Law
resulted in the enactment of Cooperative
Credit Societies Act (1904)
Salient features:-
• Classification of cooperative societies
into rural and urban(4/5 rule).
• Organization and control is to be done by
Registrar of cooperative.
• Loans could be extended to the
members on personal and collateral
security.
• Principle of one man one vote

19. Modification phase(1912-
1918)
Cooperative Societies Act of 1912 was
enacted for rectifying the shortcomings of
1904 act.
Salient features:-
 It provide legal protection to all types of
cooperatives.
 It gave provision for registration of all
types of cooperative societies.
 Liability is limited in the case of primary
societies and unlimited for central
societies.

20. Expansion Phase(1919-1929)
“Golden Era”
 Cooperatives became a provincial
subject under Montague Chelmsford
Act of 1919.
 The economic prosperity during period
1920-1929 also contributed to the growth
of cooperative movement.
 Birth of Land Mortgage Banks(LMBs)
Punjab(1924)
Madras(1925)
Bombay(1926)

21. Restructuring Phase(1930-
1946)
 Madras Cooperative Societies Act
1932
 Madras Cooperative Land Mortgage
Banks Act 1934
 Vijayraghavacharya Committee in
Madras
 Kale Committee of Gwalior
 Wace Committee of Punjab

22. Post-Independence Era(1951-
2007)
 Establishment of Planning Commission in
1950
First five year plan(1951-1956)
Objectives:
 Involvement of cooperatives in rural
developmental programmes.
 Extending cooperatives to the field of
farming, industry, housing, marketing etc.
 Development of well organized credit system
Drawback pointed out by All India Rural Credit
Survey Committee:-
 Uneven distribution of cooperative credit
 Credit lent mostly large cultivators rather than
small and marginals

23. 2nd five year plan(1956-1961):
 On the recommendation of AIRCSC in
1956 National Cooperative
Development and Warehousing Board
were established.
 Initiated the setting of producer
cooperatives and processing
cooperatives
3rd five year plan(1961-1966):
 Establishment of National Cooperative
Development Corporation(NCDC) in
1963

24. 4th five year plan(1969-1974)
 Reorganization of District Cooperative
Credit Societies for the smooth flow of
cooperative credit.
 Establishment of Indian Farmers
Fertilizers Cooperative Limited (IFFCO)
at Kandla, Gujarat
5th five year plan(1975-1979)
 New fertilizer projects
6th five(1980-1985)
 Establishment of NABARD on 12th July,
1982
 Strengthening of diary cooperatives
 Multistate cooperative societies act 1984

25. 7th five year plan(1985-1990)
 Organization of special loan recovery
camps.
8th five year plan(1992-1997)
 Emphasized replication of AMUL
Pattern of cooperatives for milk and
strengthening of processing
cooperation.
9th five year plan(1997-2002)
 Removal of some restricted provisions
on the functioning of cooperatives

26. 10th five year plan(2002-2007)
 To make a special study of the role of
the cooperatives
 Study of constraints and remedial
measures for improving the
commercial and economical viability
 Factors inhibiting the development of
cooperatives in the states
 Suggest suitable programmes for
encouraging cooperatives

27. COOPERATIVE CREDIT
INSTITUTIONS
Cooperative Credit Organization
Three tier system Two tier System
(ST & MT Loans) (LT Loans)
State Cooperative Banks(SCBs) Central Land Development
Banks
(at state level) (CLDBs at state level)
District Cooperative Central Banks(DCCBs) Primary Land Developmental
Banks
(at district level) (PLDBs at tehsil level)
Primary Agricultural Cooperative Credit Societies
(PACS at village level)

28. Number and Membership of Credit Societies in India
(1990-1991 to 2010-2011)
Year
No. of Societies Membership ( ' 000 No.)
Credit Credit
1990-1991 95546 95764
1991-1992 97809 107181
1992-1993 98236 133362
1993-1994 100166 135697
1994-1995 97122 133014
1995-1996 133808 140228
1996-1997 134325 147116
1997-1998 137136 155725
1998-1999 137325 145772
1999-2000 139534 152733
2000-2001 142723 152882
2001-2002 146206 158488
2002-2003 122475 149974
2003-2004 120803 139502
2004-2005 121866 144928
2005-2006 - -
2006-2007 - -
2007-2008 150593* 183369
2008-2009 - -
2009-2010 147991* 181150
2010-2011 - -

29. State Cooperative Banks
 Apex credit organization existing at
the state level
 Members DCCBs and PACCSs
Functions:-
 Help the state govt. in formulating
developmental plans
 Act as a Banker’s of Bank of DCCBs
 Similar to other banks also perform
the normal banking operations.

30. Performance of State Level Cooperatives in India
(2007-2008)
(Rs. in Lakh)
Coope-
ratives
No. of
Socie-
ties
Of Which
Re-
ported
Total
Member-
ship
Share Capital
Working
Capital
Total
Reserve
Total
Borrowin
gs
Total
Deposits
Total
Assets
Total Employment
Total Govt.
Credit Coope-
ratives
S.C.B. 31 31 150917
131617.0
0
15286.00
8985076.
00
863179.0
0
2160638.
00
5628692
.00
5548936.
04
14857
S.L.D.B. 19 19 5788770 77518.94 8822.01
2180095.
23
253782.7
2
1631335.
83
56638.3
4
1417223.
41
8502
State Level Cooperative Urban Banks 18 18 - - - - - - - - -
Credit Total 68 68 5939687
209135.9
4
24108.01
11165171
.23
1116961.
72
3791973.
83
5685330
.34
6966159.
45
23359
Non-Credit Coope-
ratives
State Coop. Marketing Federation (All) 46 46 142127 44564.48 39768.65
568376.0
8
100559.4
2
601655.4
0
N.A.
752249.7
0
16707
State Coop. Consumer Federation 30 30 20020 13437.72 12502.74 41503.39 4044.14 37151.34 N.A. 15883.71 5291
State Coop. Housing Federation 26 26 30203 42700.23 9731.50
410006.6
0
10242.52
991184.7
0
N.A.
410006.6
0
N.A.

31. ate Coop. Weavers
deration
31 28 13242 13284.96 12460.06 38691.32 1441.74 12540.70 624.58 9571.67 N.A.
ate Coop. Industrial
deration
23 23 8862 282.51 218.16 1038.86 54.36 280.32 66.11 1038.86 -
ate Coop. Dairy
deration
23 4 376 8154.90 3838.06 58700.33 4584.08 20279.81 N.A. 42079.59 -
ate Coop. Fisheries
deration
21 12 7399 230.04 216.97 2756.57 572.66 1549.57 N.A. 2756.53 -
ate
op.
bour Federation
12 4 1165 38.33 34.20 344.76 41.39 40.28 N.A. 344.76 -
ate Coop. Forest
bour Federation
3 3 3944 62.59 15.21 1018.00 19.39 479.60 11.85 1018.00 -

32. District Cooperative Central
Banks
 Act as a link between SCBs and
PACS
 Also undertake normal banking
functions
 Marketing societies, consumer
societies, farming societies, urban
banks and PACS usually enroll as its
members
 Supervise and inspect the activities
and functions of PACS

33. Primary Agricultural Cooperative
Credit Societies (PACS)
 Came into existence with enactment of
cooperative societies act of 1904.
 Functions at village level providing the
farmers required short and medium term
loans.
 Borrow adequate and timely funds from
DCCBs.
 Help the farmers in marketing of farm
produce.
 Distribute fertilizers, seeds and pesticides to
the needy farmers.
 Provide machinery to the farmers.

35. Number, Membership and Financial Position of Primary Co-operative
Agriculture and Rural Development Banks (PCARDBS) in India
(1990-1991 to 2010-2011)
(Amount : Rs. in Million)
Year Number of Societies
Memb-
ership
( ' 000 No.)
Total Share Capital Reserves Deposits Borrowing Total Working Capital
Loans Issued during
the year
1990-91 717 6852 1848 877 158 19761 26171 3725
1991-92 724 7090 1953 148 165 21897 29013 3891
1992-93 727 7320 2187 1099 208 24972 32751 4996
1993-94 731 7299 2348 1206 269 27368 35339 6119
1994-95 757 7326 2530 1322 258 29574 37699 6944
1995-96 735 7106 2842 1432 366 35228 44551 9896
1996-97 741 7503 3553 1649 361 41694 53646 12316
1997-98 739 7376 4682 3077 558 51587 66913 17138
1998-99 760 6919 5414 3814 814 59444 78472 17805
1999-00 727 7106 6315 4594 889 65147 88736 18951
2000-01 754 7269 6681 5567 1106 70514 92953 16340

36. 2001-02 770 7254 6805 6614 1273 72768 98159 15722
2002-03 765 7443 7247 12514 2364 87257 121602 20969
2003-04 729 7334 8135 14567 2453 98589 142401 23380
2004-05 758 8377 8774 19402 2600 112300 161331 26060
2005-06 - - - - - - - -
2006-07 - - - - - - - -
2007-08 - - - - - - - -
2008-09 697 9898 15145 32313 4319 124028 183218 20643
2009-10 697 9472 13082 31099 4425 126490 188198 27614
2010-11 697 9091 13746 32489 4847 133497 199440 33244
Number, Membership and Financial Position of Primary Co-operative
Agriculture and Rural Development Banks (PCARDBS) in India
(1990-1991 to 2010-2011)
(Amount : Rs. in Million)
Year Number of Societies
Memb-
ership
( ' 000 No.)
Total Share Capital Reserves Deposits Borrowing Total Working Capital
Loans Issued during
the year

37. Central Land Development Bank
(CLDB)
 Apex bank in the two tier structure
providing long term credit to PLDBs
and its subsidiary branches.
 NABARD is refinancing agency to the
CLDBs.
 Inspects , supervises and guides
PLDVs.
 CLDB is a link between NABARD and
government in long term transection

38. Performance of Central Level Cooperatives in India
(2007-2008)
(Rs. in Lakh)
Coope-
ratives
No. of
Socie-
ties
Of Which
Re-
ported
Total Member-
ship
Share Capital
Working Capital Total Reserve
Total
Borrowings
Total Deposits Total Assets
Total Employ-
ment
Total Govt.
Credit Coope-
ratives
Central Coope-
rative Bank
372 372 3396881 582923.00 113928.00 16813752.00 1643573.00 3053334.00 10599372.00 N.A. 90035
Credit Total 372 372 3396881 582923.00 113928.00 16813752 1643573.00 3053334.00 10599372.00 N.A. 90035
Non-Credit Coope-
ratives
Marketing Coope-
ratives.
381 381 3320035 7447.88 3144.16 150374.61 14253.76 26052.75 N.A. 82022.64 N.A.
Consumer Cooperatives 812 812 1781000 8351.92 5500.72 54681.59 5706.07 13621.18 N.A. 32469.02 12574
Weavers
Coope-
ratives
36 14 3861 257.99 176.51 876.53 86.92 613.69 44.39 437.13 -
Industrial
Coope-
ratives
119 77 23222 90.60 46.47 1946.24 402.30 1097.12 161.20 1169.66 -
Dairy Coope-
ratives
198 198 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. -
Fisheries
Coope-
ratives
125 32 11669 322.39 299.16 1020.52 248.78 643.47 N.A. 385.79 -

39. Labour Coope-
ratives
114 45 5526 12.88 5.15 654.00 271.58 3.73 N.A. 651.76 -
Forest Labour
Coope-
ratives
10 10 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. -
Coope-
ratives
Unions (Incl.
Supervisory
Unit)
565 565 147731 N.A. N.A. N.A. N.A. N.A. N.A. N.A. -
Ghee Unions 379 379 9323 32.18 14.88 82.30 2.20 7.12 N.A. 82.30 -
Non-
Credit
Total
2739 2513 5302367 16515.84 9187.05 209635.79 20971.61 42039.06 205.59 117218.30 12574
Grand
Total (Credit+
Non-
Credit)
3111 2885 8699248 599438.84 123115.05 17023387.79 1664544.61 3095373.00 10599577.59 117218.30 102609
Performance of Central Level Cooperatives in India
(2007-2008)
(Rs. in Lakh)
Coope-
ratives
No. of
Socie-
ties
Of Which
Re-
ported
Total Member-
ship
Share Capital
Working
Capital
Total Reserve
Total
Borrowings
Total Deposits Total Assets
Total Employ-
ment

40. Primary Land Development
Banks (PLDBs)
 Establishment of Land Mortgage
Banks was initiated in Punjab during
the year 1920.
 During 1920-29 many LMBs were
established in Mysore, Madras,
Assam, Bengal, Bombay, etc.
 In the year 1974 LMBs were renamed
as Land Development Banks.

41. Specific Functions Of PLDBs
 To provide long term credits to needy
farmers for land development
 Provide finance to farmers for
construction of farm buildings
 Provide loans for minor irrigation;
purchase of land and for redemption
of old debts
 Finance farmers in purchase of
tractors, machineries and equipments.

42. Selected State-wise Performance of Primary Agricultural Cooperative Rural Development Bank in India - Part II
(2004-2005)
(Rs. in Lakh)
States
Loan Advanced For
Total Demand Total Overdues Total Employment
Total Loans Farm Sector Non-Farm Sector Rural Housing
Chhattisgarh 4150.84 3985.02 165.82 - 6976.79 2761.23 438
Haryana 49510.71 41900.15 1418.34 6192.22 102299.94 60857.36 1866
Himachal Pradesh 2255.93 942.13 364.87 637.73 2486.17 868.22 68
Karnataka 11913.90 8562.12 462.20 2889.58 95980.87 38191.07 1267
Kerala 34577.40 10965.43 7658.21 14526.37 62592.65 27191.81 1115
Madhya Pradesh* 30880.36 27620.40 2596.66 450.91 47092.85 19756.97 2794
Orissa* 754.08 741.48 12.60 - 2533.17 1323.70 711
Punjab 76440.09 55795.62 4013.54 16630.93 92944.54 26718.00 1019
Rajasthan 21733.64 16502.86 2547.60 2003.94 61435.76 31621.93 870
Tamil Nadu 1243.96 804.63 117.13 322.20 85521.79 59457.38 1189
West Bengal 15767.31 9924.30 1243.19 2383.70 24482.69 12772.41 781
Maharashtra 629.54 622.31 7.23 - 39670.76 26014.73 2650
India 249857.76 178366.45 20607.39 46037.58 624017.98 307534.81 14768

43. Progress of Farming Co-operatives Societies in India
(2007-2008 and 2008-2009)
(Value Rs. in Million)
Particulars 2007-08 2008-09
No. of Societies 6886 9602
Joint Farming Types 4295 4297
Membership 362475 362283
Share Capital 77.94 80.06
Govt. Participation 36.05% 36.27%
Working Capital 730.97 742.06
Business Operations 225.89 233.65
Source : National Cooperative Union of India. (16680)

44. THANK YOU