History of Cooperative Movement
History of Cooperative Movement Origin and History of Cooperatives. Although co-operative agreements such as mutual insurance and co-operative principles existed long ago, the cooperative movement started with the application of co-operative principles to the business system.
The beginning
The co-operative movement began in Europe in the 19-)o century, primarily in Britain and France. Founded in 1498 in Aberdeen, the Short Porters Society claims to be the world’s first co-operative society.
Robert Owen
Robert Owen (1771-1858) is considered the father of the co-operative movement. Robert Owen’s ideas were effectively implemented in the cotton mills of New Lanark, Scotland. The first cooperative store was opened here. Encouraged by its success, Robert Owen formed the “Rural Co-operative Society”.
Co-operative movement in the pre-independence period
The term Co-operative Societies came into existence when the farmers of Poona and Ahmednagar led the agitation against moneylenders who charged exorbitant rates of interest. Therefore, the British government came forward and passed 3 Acts namely Deccan Agriculture Relief Act (1879), Land Improvement Loan Act (1883) and Agriculturist’s Loan Act (1884).
By the time the British Co-operative Credit Societies Act came into force in 1904, the co-operative movement had structure and form. Co-operation became a provincial matter in 1919 and the provinces were empowered to make their own co-operation laws under the Modegue-Chelmsford reforms. This classification was enforced until the Government of India Act of 1935. In 1942, the Government of British India enacted the Multi-Unit Co-operative Societies Act to protect co-operative societies with membership from more than one province.
Co-operative movement in the post-independence era
To Pandit Jawaharlal Nehru, the first Prime Minister of India. There was a strong belief in the co-operative movement. Hence, post-independence cooperatives became a desirable component of five-year plans.
1. National Development Council (NDC) in 1958
A national policy on co-operatives has been recommended and training of personnel and establishment of co-operative marketing societies has been recommended.
2. The Parliament of India enacted the Multi-State Co-operative Societies Act in 1984 to remove the multiplicity of different laws governing the same level societies.
Importance of Indian Cooperative Sector
Cooperatives play a very important role in India and the importance of cooperative sector is given below:
1. Providing agricultural credits and funds which the state and private sector cannot do.
2. Provides strategic inputs to the agricultural sector; Consumer societies meet their consumption needs at a benefit rate.
3. Helps to overcome the constraints of agricultural development.
Multi State Co-operative Society (MSCS)
The Co-operative Societies Act, 1984, which has scope of operation in more than one state, came into force. It is a Central Act comprising 110 sections and 27 rules. Such cooperative societies are supervised by the Central Register. This Act of 1984 made some important additions/deletions and the Parliament passed the Multi State Co-operative Societies Act 2002 on 13th May, 2002.
MSCS is a society registered or registered under this Act. It includes a National Cooperative Society and a Federal Cooperative.
As the name suggests, its area of operation is not limited to a single state. It caters to the interests of its members in multiple states, is capable of facilitating the voluntary formation and democratic functioning of cooperative societies as institutions of the people based on self-reliance and mutual assistance, promoting their economic and social progress, and providing them with functional autonomy.
MSCS works for the mutual benefit of its constituents.
The ultimate objective of the National Policy on Co-operative Societies
1. Support the promotion and development of cooperatives.
2. Reduction of regional imbalances
3. Strengthen cooperative education, training and human resource development.
