In , Government of British India enacted the Multi-Unit Cooperative Societies Act to cover Cooperative Societies with membership from more than one province. India's first Prime Minister Pt. Jawaharlal Nehru had strong faith in the cooperative movement. The history of cooperative movement in India is almost a century old. The first Cooperative Credit Societies Act, , marked the beginning of cooperative movement in India. Initially, the primary objective of cooperation was to safeguard the interests of the poor farmers from private money lenders. TYAOI has set out to give a history of the Indian Co-operative Movement since and committees which met to consider aspects of the Movement between


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In it met The average Loan advanced per member had increased from rupees 44 in to rupees in Apart from providing finance, the movement had diversified into such fields as agricultural production, marketing and processing, small and medium industries, housing, transport, and distribution of essential commodities.

It even failed to cooperative movement in india their self-reliance, resourcefulness, or capacity for concerted action.

Co-operative Movement in India

In the words of Dr. Where had the movement gone wrong? Causes of Slow Progress: Knowledge of the principles of co-operation is an essential condition for the success of the movement.

In most cases, however, this condition was not fulfilled.

History of Co-operative Movement in India (1047 Words)

There was no genuine urge to develop the movement. The leadership thrown up by the movement was inadequate, incompetent, faction-ridden and lacking in knowledge, integrity, and dedication. No wonder, that the movement continued to be dominated by money-lenders and others who used its funds to promote their own ends, financial or political.

Lack of Supervision, Audit cooperative movement in india Inspection: Another defect was that the co-operative societies were neither strictly supervised nor properly audited.

Cooperative movement in India - Wikipedia

Even where accounts were properly audited, audit objections were seldom attended to. To co-operative movement was officially sponsored in Ever since its birth, it remained govt.

This rigid official control and interference did great harm in the sense that it cooperative movement in india few opportunities for the people to learn to do things for themselves, to develop a spirit of self-reliance and self-dependence.

Lack of Proper Atmosphere: Co-operation is a democratic movement based on the principle of equality. But the socio-economic background of the Indian village, especially in areas with long-standing feudal relations, was hardly conducive to its proper cooperative movement in india and healthy growth.

The caste system, inadequate spread of literacy, and types of land tenures prevailing in certain areas, prevented the co-operative institutions from operating strictly in accordance with democratic principles. The movement would have succeeded had it incorporated a frontal attack on the existing power structure in the village.


It instead aimed at improving conditions without disturbing the socio-economic set up. Rural credit, marketing, small industries, better farming, production and distribution of milk, animal husbandry, irrigation, processing all were treated in isolation; the interrelations of these activities or their bearing on one another or on the rural economy as cooperative movement in india whole were never kept in mind.

Defective Loan Policies and Procedures: Loan policies and procedures followed by co-operative institutions were not adopted in cooperative movement in india with the much publicized crop-loan system. Loans were mostly given on the security of land and not on anticipated crop.

History of Co-operative Movement in India ( Words)

The cooperative movement in india amount was given out in lump sum instead of being paid in instalments; loans were generally given in cash and not in kind. In addition, there were inordinate delays in the disbursement of loans. Cooperative movement in india defective, cumbersome, and dilatory procedures and policies made the societies unpopular and stood in the way of the speedier growth of the movement.

The co-operative organisation was based on the principle of federalism under which local societies were federated into a secondary society which, in turn, federated into a tertiary and finally a national society.

Most of the general ills from which co-operative institutions suffered such as the lack of proper accounting, irregularities of loans, maintenance of records, were largely due to a lack of trained and qualified staff. Even the working of higher institutions suffered on account of the dearth of trained and qualified personnel.

That is why there were complaints of inefficiency, graft, corruption and accumulation of over-dues.