Dr Daman Prakash
For the development of any socio-economic institution, like a cooperative, some of the fundamental requirements are: enlightened and well-informed members, objective and honest leadership, member participation in organisational and business aspects, professionally-qualified management personnel, belief in the philosophy and concept of Cooperation, and a close interaction with the members of the community. The universally-accepted Principles of Cooperation not only lay guidelines for management of cooperatives but are also based on certain basic values and ethics.
Islands of Successful Cooperatives
Studies carried out by the International Cooperative Alliance [ICA], a world association of cooperatives with over 220 Member-Organisations representing over 1 billion individual cooperative members from 99 countries in its membership, under its Global-300 Cooperatives, have concluded that enlightened membership coupled with professionally-qualified management have made these institutions strong. Some of the conclusions of the study are as follows:
Sunvalley Potatoes of Idaho of USA; Sun Maid Raisin Coop of USA; Sunkist Growers’ Coop of USA; SYSCO Corporation of USA [US$42 billion turn-over]; A-COOPS of Japanese Agricultural Cooperatives; Kibbuz of Israel; IFFCO of India.
Total revenue of studied cooperatives was over 1 trillion USD [Rs 50 lakh crore]; 14% growth rate and 10th largest economy of the world; 30% of list are in agricultural and food sectors; 20% more employees than all MNCs put together [100 million] [10 crores]; 90% Swiss retail business by cooperatives; World’s largest banks are cooperatives [France, Holland, Japan]; 28 from out of 300 top cooperatives are from Asia-Pacific Region: Japan-14, India-04 [Markfed-Andhra Pradesh, AMUL, IFFCO, NAFED], Singapore-02, Korea-02, China-01, Australia-03, New Zealand-02.
The Indian Cooperative Movement is the largest in the world with the following landmarks: 600,000 cooperatives – 60% agricultural; 100% villages covered; 30% of national population in membership; World’s largest cooperative credit structure; World’s largest HRD sector [Coop Member Education & Employees’ Training]; Highest number of national business and promotional federations [23]; World’s largest production and distribution network [IFFCO & AMUL]; Coop-Ice-creams enjoy 45% market share; Almost 50% of world sugar production through cooperative sugar mills; Govt support to coops through official agencies e.g., NCDC. The former IFFCO Chairman was elected to the Board of ICA-global.
Though the spread of cooperatives in India is wide, yet there have been instances of gaps in their levels of development. It has been noticed that the islands of successes are mostly due to two important factors: [a] Enlightened membership and their satisfaction from the services provided, and [b] Management and community leadership. Provision of services and encouragement by leadership to participate in the affairs of their cooperatives, members develop a sense of belonging with their cooperatives and hence they carry out their business with their cooperatives.
With a view to identify members’ awareness on their role in their cooperatives a survey was carried out in two states [Uttar Pradesh and Punjab] on 2500 members. A summary of findings from field studies carried by IFFCO Foundation is given below:
-Less than one-fourth members participate in General Body Meetings;
-Managing Committee is monopolized by a few;
-Untrained and underpaid secretaries and managers;
-Majority of PACS suffer from high overdues;
-Majority of members have not seen/read the byelaws;
-Members sell their farm produce outside, not through their cooperative;
-PACS most do fertiliser business only;
-Fertiliser supplies are inadequate and some times untimely;
-Control of District Administration on fertiliser distribution;
-Business development plans are not properly prepared and implemented;
-No linkages with existing self-help groups;
-Upper tier cooperatives/federations often compete with their own affiliates.
Lack of participation by the members is mostly due to ineffective leadership and the services provided by cooperatives. Cooperatives should realise that they are there because of the members and they can prosper if members feel satisfied with the services. The organisational and management leaders have, therefore, an important role in the development of cooperatives which can help improve the livelihood conditions of smallholder farmer-members.
Besides organising member education and training programmes for primary cooperatives, IFFCO Foundation also conducts training programmes for members and office-bearers of self-help groups. It is emphasised that cooperatives and self-help groups are no doubt two separate institutions but their objectives are the same and both of them work for the upliftment and improvement of livelihood conditions of members. A SHG is a sub-system of a cooperative.
Action Points for Future Growth of Cooperatives
Based on the studies carried out by IFFCO Foundation and the suggestions made by cooperative members and leaders, the following steps need to be taken:
– Business diversification of PACS to strengthen cooperatives and their business. Cooperatives can undertake insurance and micro-credit activities, commodity trading, distribution of agri-inputs e.g., seeds, farm chemicals, farm machines, irrigation, and agro-processing;
– Promotion of Self-Help Groups as sub-system of cooperatives. Both the institutions can compliment and supplement each other. Lessons can be learnt from the states which have successfully implemented coo-SHG legislation e.g., Orissa State;
– Promotion of proper leadership through education, training and awareness programmes;
– Replicating the successes of PACS e.g., Malkanoor in Andhra Pradesh, Kheri in Punjab and Rau Cold Store in Indore, Madhya Pradesh;
– Scaling-up successes e.g., dairying, sugar, and not to remain content with their existing achievements;
– Undertaking extensively farm guidance and support services to farmers by using their cooperative institutions;
– Preparing realistic business development plans and training of managers in the process of implementation and evaluation;
– Preventing business federations from competing with their own affiliates. They should rather supply and assist their member-societies;
Genuine, honest and forward-looking leaders with full belief in the concept of cooperative enterprise, who can create a strong team of professional managers and enlightened members, are the key to the success of cooperatives.