Role of co-operative in agribusiness

Role of Co-operatives in Agribusiness Management

:Presented By:Divyesh Patel

(AABMI,NAU,NAVSARI)

:Guided By:Dr . Swati Sharma

(Asso. Prof.)

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ContentIntroductionMain areas of co-operative

HistoryPrinciplesTypesCooperative in agribusiness

AdvantagesDisadvantagesConclusion

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What is Co-operative? A co-operative is a group of

people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically.

A cooperative is a legal entity owned and democratically controlled by its members.

Introduction

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The main areas of operation of co-operatives in India are as under: Agricultural suppliesAgricultural supply cooperatives, in particular, faced financial stress during that time due to decreased demand for inputs used in farm production.

Agricultural Marketing A marketing cooperative is a business organization owned by farmers to collectively sell their products. Cooperative can give them greater power in the market place.

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Agricultural Processing Processing of food grains and other agricultural

products is the most important stage in preparing them for the ultimate consumption. This can be eliminated if the processing activities are organized on a co-operative basis by the producers themselves so that they Call get better return on their produce .

Conti……

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Agricultural Credit Agricultural credit is, thus

essentially, an operation of securing money from one source or the other by creating the confidence that the amount of loan would be invested in productive operations so that the lender will get back the loan with interest as per agreement.

Industrial co-operatives A Cooperative organized by workers ,

controlled by worker & managed by workers for meeting their common purpose.

Conti……

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Urban credit Co-operatives Urban cooperative bank is a group of people

who form a co operative society for mutual financial benefits & financial transactions like any financial institutions in urban towns & cities functioning under directions of the apex /central reserve bank.

Housing co-operatives A Housing Co-operative is a business that

owns or rents property for the purpose of housing its members.

Conti………

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The first Cooperative Society Act of 1904 was enacted to enable formation of “ Agricultural Credit Cooperatives in villages in India under Government sponsorship. With the enactment of 1904 Act, Cooperatives were to get a direct legal identity as every agricultural Cooperative was to be registered under that Act only.

The National Cooperative Union of India (NCUI) was established in 1929 as an apex promotional organization for strengthening of cooperatives.

History of Co-operative in India

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National Cooperative Development and Warehousing Board was set up in 1956.

The Indian Co-operative Movement has earned distinction of being the largest in the world. This is true in terms of membership and Co-operative network which spread over almost all the villages in the country and the number of Co-operative Societies .

In our country, there are about 5.5 lakh of cooperative Societies with membership of more than 22crores.

Conti………

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Voluntary and open membershipDemocratic member controlEconomic participation by membersAutonomy and independenceEducation, training and informationCooperation among cooperativesConcern for community

Seven Principles of Cooperatives

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Agribusine

ssCo-

operative

Milk Producers Co-

operatives

Fisheries Co-

operativesFarming

co-operativ

es

Co-operativ

e Banking

Fertilizer Co-

operatives

Types of Co-operatives

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Example of

Milk Producers

Co-operatives

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NDDBNDDB - National dairy development board.

Established in 28 November 1979

It provides market support to the producers in rural areas.

This network has been instrumental in supplying liquid milk & dairy products to the urban consumers.

Located at Anand(Anand Agricultural university campus)

These cooperatives play important role in milk marketing in few states in country.

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AMUL - Anand milk union ltd.

Amul formed in 1946, is a dairy cooperative movement in INDIA.

It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF)

Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day.

AMUL

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Dr. Verghese Kurien volunteered to help in

setting up a processing plant.

Vidya Dairy(located AAU,campus) is also

one of the milk producing co-

operative ,related with the Amul.

The success of Amul was instrumental in

launching the White Revolution that

resulted in increased milk production in

India.

Conti……..

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Example of

Fertilizer

Co-operatives

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IFFCO - Indian Farmers Fertilisers Cooperative Limited (IFFCO)

Registered on November 3, 1967 as a Multi-unit Co-operative Society.

Plants owned by IFFCO- Kalol, Kandla(GUJARAT),Phulpur (Uttar Pradesh), Para deep(Orissa).

Contributes 20 per cent of country’s total nitrogenous fertilizer production and 25 percent of total phosphate fertiliser production.

IFFCO

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KRIBHCO - Krishak Bharati Cooperative Limited

Established in 5th February 1982.

Is a premier Cooperative Society for manufacture

of fertilizer, registered under Multi-State

Cooperative Societies Act-1985

Was promoted by the Govt. of India, IFFCO, NCDC

and other agricultural Cooperative societies.

KRIBHCO has setup a Fertilizer Complex to

manufacture Urea, Ammonia & Bio-fertilizers at

Hazira( Surat, Gujarat).

KRIBHCO

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Objectives-To increase the urea installed capacity,

maintaining its market share.To ensure optimum utilisation of existing

plant and machinery.

Conti…..

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Example ofFisheries Co-

operatives

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  GFCCA - Gujarat Fisheries Central Co-operative Association Limited

Gujarat Fisheries Central Co-operative Association Limited (GFCCA) is an apex cooperative body of the fishermen cooperatives in the State of Gujarat. It was established in the year 1956 with financial and administrative support of the Government of Gujarat.

GFCCA

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Co-operative bank

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The co-operative banks are small-sized units which operate both in urban and non-urban centers. They finance small borrowers in industrial and trade sectors besides professional and salary classes.

Regulated by the Reserve Bank of India, they are governed by the Banking Regulations Act 1949 and banking laws (co-operative societies) act, 1965. The co-operative banking structure in India is divided into following 5 categories:

Co-operative Bank

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SCB – State Cooperative Bank

DCCB – District cooperative central bank

PACS – Primary Agricultural Cooperative credit

Societies

CLDB – Central Land Development Bank

PLDB – Primary Land Development Bank

Conti……….

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Farming co-operatives

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TRIFED - Tribal cooperative marketing federation

It was established in 1987 to develop the system of marketing of forest produced by tribals in the country.

TRIFED arranges marketing & export of minor forests products produced by the tribals in the tribal dominated areas & protects the tribals from exploitation.

TRIFED

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FSS - Farmers service society

Established. 1973, Initially covers 8-10 villages . It is a source of finance. It also provides Subsidies to poor farmers

for purchase of inputs.

FSS

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NAFED - The National Agricultural Cooperative Marketing Federation of India.

It was established in October, 1958It deals in procurement, processing,

distribution, export & import of selected agricultural commodities.

It is also the nodal agency for undertaking price support operations for pulses & oilseeds and market intervention operation for other agricultural commodities.

NAFED

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The head office of NAFED is in Delhi & its branch offices are located at Mumbai, Kolkata & Chennai.

Conti……

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Ownership and Democratic ControlIncreased Farm IncomeImproved ServiceQuality of Supplies and ProductsExpanded MarketsImproved Farm ManagementLocal Leadership DevelopmentAdded Community IncomeQuality ProductsNew Products and Processes

Advantages of cooperative

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Poor infrastructure, Lack of awarenessLack of quality management, Over-dependence on government,Restricted coverage Middlemen FunctionsDecisions by Large NumbersLimited Objectives

Disadvantages of Cooperative

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Agribusiness cooperatives are playing a big role in

growth of agribusiness sector in India.

Agribusiness is affected by a multitude of factors

including institutions and organisations.

Cooperatives are considered an important

instrument of agribusiness development in

developing countries including India.

Conclusion

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