Financing and marketing management (1+1)

Unit 1- Cooperation

1.1 Evolution of co-operative movement in India
The cooperative movement saw the light of the day in 1844 in England. Later, on the guidance of Schultz, F.W. and Raiffeisen, F.W., cooperative credit societies were started in Germany. This has been the model to the present day cooperative credit structure in the world. In India, the idea of cooperative movement was first conceived by the then Madras Government in 1892. Sir Frederick was appointed to find ways and means for the constitution of agricultural banks in the state. He suggested the formation of Raiffeisen type societies. These societies started to function in the present century to protect the farmers from exploitation by the traders. Further on the basis of the precise report of Fredrick Nicholson and Duperhex that the cooperatives were considered worthy of every encouragement. Taking this view as well as the recommendations of the Famine Commission, 1901, a pilot bill was passed and an Act was approved by the legislative council in 1904 to meet the credit needs of rural people. As such the act of 1904 was a pioneer Act in the cooperative credit movement in India.
The act of 1904 was amended to meet the growing needs of rural credit and the limitations of the Act were removed by passing another Act in 1912. The Act of 1912 gave a fresh impetus to the growth of cooperative movement by including marketing and processing also in addition of rural credit. in 1914, Sir Edward Maclagan Committee suggested many more changes. In 1919, Government took measures under the Reform Act of 1919 to make the cooperative credit more effective for furtherance of agricultural growth. In 1945, the Saroya Committee and in 1954 Gorawala Committee suggested changes for improvement in the cooperative system for the welfare of the farmers. Since then, several committees examinant the status of cooperatives from time to time and made suggestions for them to play an important role in rural and agricultural development including marketing of farm inputs and products.