Yaksh ChaudharyAIR 6 · CSE 2021 · 334 wordsTheir whole copy
Opening · a definition
Cooperatives are voluntary organisation where its members use their common resources to achieve and fulfil common interests. Generally Cooperatives are the organisations of poor and marginalised members of the society.
Body · points and prose
Evolution of cooperative movement in India
Cooperatives in India came into being during British time. British land revenue policies led to emergence of moneylenders, Zamindars, absentie landlords etc. who exploited peasants and farmers. Hence small peasants were under dual exploitation of Colonial state and these intermediaries. The peasants were not able to pay rent to Britishers because of sad economic conditions. Hence to solve this problem, Britishers encouraged formation of Cooperatives in agriculture. They did so for their own vested interests of economic exploitation of Indian peasants.
Britishers passed Cooperatives Act, 1904 and Cooperatives Act, 1912 to encourage formation of Cooperatives. Presence of moneylenders in the rural areas and need of farmers/peasants to pay for rent led to high borrowing of money by peasants from moneylenders. This indeptness at usurious interest rate led to exploitation of rural masses. Hence to solve this problem of moneylending at higher interest rate, they resorted to formation of rural credit societies. In these societies, peasants shared their monetary resources and led to mutual borrowing.
Hence the roots of origin of cooperatives in India lies in agriculture. However today cooperatives in India have diversified into many sectors. Amul Cooperative of Gujarat, IFFCO Cooperative for fertilizers etc. are working very well. Globalisation has posed some challenges to cooperatives in India.
Globalisation : A threat to Cooperatives in India
- Expansion of foreign banks has led to reduced importance of cooperative banks.
- The cheap import of agriculture products has led to decline of many agriculture cooperatives. Emergence of Trans National Companies has led to debeasantisation according to Vibha Arora.
- Multi National Companies today are contracting directly with farmers to buy their product. Hence farmer Producer Cooperatives are impacted by it.
Close · a summary
Hence Cooperatives in India firstly emerged in agriculture sector but today they are facing challenges from globalisation.