History of Co-operatives in India

History of Cooperatives in India

The history of cooperative societies dates back to the pre-Independence era, in response to the agrarian distress and overall indebtedness.

• The term Cooperative Societies came into existence when the farmers of Pune and Ahmednagar (Maharashtra) spearheaded an agitation against the money lenders who were charging exorbitant rates of interest.

Pre-independence:

• The first cooperative society legislation came into existence with the Cooperative Credit Societies Act, 1904.
  • The first credit cooperative society was formed in Banking in 1903 with the support of the Government of Bengal. It was registered under the Friendly Societies Act of the British Government.
• In 1912, another Act was passed to rectify some of the drawbacks.
• The next landmark Act came in 1919 under the Montague-Chelmsford Reforms, under which cooperation was made a provincial subject. It allowed the provinces to come up with their own legislation for governing cooperatives.
• Later, in 1942, the British government announced the Multi-Unit Cooperative Societies Act to cover cooperative societies whose membership extended beyond one province.

Post independence:

• In post-Independent India, in 1958, the National Development Council (NDC) had recommended a national policy on cooperatives and also for training personnel and setting up cooperative marketing societies.
• National Cooperative Development Corporation (NCDC), a statutory body, was set up under National Cooperative Development Corporation Act, 1962.
• In 1984, Parliament enacted the multi-state cooperative societies Act to remove the plethora of laws governing the same types of societies.
• In 2002, government announced a National Policy on Cooperatives to support the promotion and development of cooperatives. It is also aimed at reducing regional imbalances and strengthening cooperative education, training and human resource development.