The beginning of the modern cooperative movement

The earliest record of a cooperative comes from Fenwick, Scotland where, in March 14,
1761, in a barely furnished cottage local weavers manhandled a sack of oatmeal into
John Walker's whitewashed front room and began selling the contents at a discount,
forming the Fenwick Weavers' Society.

There are a plethera of records of cooperatives started out as small grassroots

organisations in Western Europe, North America and Japan in the middle of the
nineteenth century, however, it is the Rochdale Pioneers that are generally regarded as
the prototype of the modern cooperative society and the founders of the Co-operative
Movement in 1844.
The Rochdale Pioneers are regarded as the prototype of the modern co-operative
society and the founders of the Cooperative Movement.

The International Cooperative Alliance

The International Cooperative Alliance was founded in London, England on 19 August
1895 during the 1st Cooperative Congress. In attendance were delegates from
cooperatives from Argentina, Australia, Belgium, England, Denmark, France, Germany,
Holland, India, Italy, Switzerland, Serbia, and the USA.

Representatives established the International Cooperative Alliance's aims to provide

information, define and defend the Cooperative Principles and develop international
trade. It was one of the only international organisations to survive both World War I and
World War II.

Overcoming all the political differences between its members was difficult, but the ICA
survived by staying committed to peace, democracy, and by remaining politically
neutral.

Cooperative Movements in India

The Cooperative Movements in India can be studied into two phases:

1. Co-operative Movement in pre-Independence era

2. Co-operative Movement in post-Independence era

Co-operative Movement in pre-Independence era

The term cooperative Societies came into existence when the farmers of
Poona and Ahmednagar spearheaded an agitation against the money lenders
who were charging exorbitant rates of interest. Hence, British government
came forward and passed three acts- the Deccan Agriculture Relief Act
(1879), the Land Improvement Loan Act (1883) and the Agriculturists Loan
Act (1884).

But Cooperative move came with structure and shape when British
enactment of the Cooperative Credit Societies Act, 1904. In 1919,
cooperation became a provincial subject and the provinces were authorised
to make their own cooperative laws under the Montague-Chelmsford
Reforms. This categorization carried on to Government of India Act, 1935.
In 1942, Government of British India enacted the Multi-Unit Cooperative
Societies Act to cover Cooperative Societies with membership from more
than one province.
Timeline of Indian Freedom Movement from 1885 to 1947
Co-operative Movement in post-Independence era
India's first Prime Minister Pt. Jawaharlal Nehru had strong faith in the
cooperative movement. In his speech in international seminar on
cooperative leadership in South-East Asia he had said “But my outlook at
present is not the outlook of spreading the cooperative movement gradually,
progressively, as it has done. My outlook is to convulse India with the
Cooperative Movement or rather with cooperation to make it, broadly
speaking, the basic activity of India, in every village as well as elsewhere;
and finally, indeed, to make the cooperative approach the common thinking
of India....Therefore, the whole future of India really depends on the success
of this approach of ours to these vast numbers, hundreds of millions of
people".
Hence, after independence cooperatives became an integral part of Five-Year
Plans.

1. In 1958, the National Development Council (NDC) had recommended

a national policy on cooperatives and also for training of personnel's and
setting up of Co-operative Marketing Societies.
Agriculture in India
2. In 1984, Parliament of India enacted the Multi-State Cooperative
Societies Act to remove the plethora of different laws governing the same
types of societies.
3. The most important success stories lays behind the success of White
Revolution which made the country the world's largest producer of milk and
milk products; and Green Revolution and the conversion of villages into
model villages have assumed great importance in the wake of the Green
Revolution.
4. Government of India announced a National Policy on Co- operatives in
2002. The ultimate objective of the National Policy is to-
(a) Provide support for promotion and development of cooperatives
(b) Reduction of regional imbalances

(c)Strengthening of cooperative education, training and human resource

development

Importance of Cooperative sector for India

The Cooperatives play very important role in India because it is an
organization for the poor, illiterate and unskilled people. The importance of
Cooperative sector for India is given below:

1. It provides agricultural credits and funds where state and private sectors
have not been able to do very much.

2. It provides strategic inputs for the agricultural-sector; consumer societies

meet their consumption requirements at concessional rates.

3. It helps to overcome the constraints of agricultural development.

How the pre-monsoon rain became the boon of India's markets and
Farmers!
Provisions of Indian Constitution
1. Directive Principles of State Policy enshrines under article 43 that-
Living wage, etc., for workers. The State shall endeavour to secure, by
suitable legislation or economic organisation or in any other way, to all
workers, agricultural, industrial or otherwise, work, a living wage, conditions
of work ensuring a decent standard of life and full enjoyment of leisure and
social and cultural opportunities and, in particular, the State shall endeavour
to promote cottage industries on an individual or co-operative basis in rural
areas.
2. Right to form cooperatives can also be construed as a Fundamental
Right, Article 14 – (Right to Equality) and Article 19(1)(c) as ‘Right to form
Associations or Unions.
Committee related to the Cooperative Movements in India
1. All-India Rural Credit Survey Committee Report (1954)
2. Chaudhary Brahm Prakash Committee (which proposed a model
law) (1990)
3. Mirdha Committee (1996)
4. Jagdish Kapoor Committee (2000)
5. Vikhe Patil Committee (2001)
6. V. S. Vyas Committee (2001 and 2004)
Hence, we can say that the Cooperatives Movement was awakening
movement for peasants and farmers as well as agriculture and its allied
 activities. It has immense potential to deliver goods and services in areas
where the government and private sector failed to reach.

o-operative Movement in India

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In this article we will discuss about the cooperative

movement in India:- 1. Subject-Matter of the Co-Operative
Movement in India 2. Early History of the Co-Operative
Movement in India 3. The Act of 1904 4. The Act of 1912
5. Maclagan Committee 6. The Depression and the Co-
Operative Movement in India 7. The Second World War
8. The Co-Operative Planning Committee 9. Causes of Slow
Progress.
Contents:
1. Subject-Matter of the Co-Operative Movement in India
2. Early History of the Co-Operative Movement in India
3. The Act of 1904
4. The Act of 1912
5. Maclagan Committee
6. The Depression and the Co-Operative Movement in India
7. The Second World War
8. The Co-Operative Planning Committee
9. Causes of Slow Progress

1. Subject-Matter of the Co-Operative Movement in India:

ADVERTISEMENTS:
The Co-operative Movement in India was born out of the distress and
turmoil that prevailed in the last quarter of the 19th century. The
Industrial Revolution had given a death blow to village industries and
driven people to agriculture, the only avenue of employment and
livelihood. The consequent sub-division and fragmentation of holdings
had made agriculture an uneconomic proposition.

This, combined with the rigidity of land revenue collection,

uncertainty of rainfall and, therefore, of crop production, compelled
the agriculturist to knock at the door of the money-lender who
advanced money cither by purchasing the crop at a throwaway price or
by charging a sky-high rate of interest.

The deteriorating condition of farmers under the heavy strain of

increasing indebtedness and frequent famines not only proved the
inadequacy of legal measures but also emphasised the need for the
provision of cheap credit through an alternative agency.

2. Early History of the Co-Operative Movement in India:

ADVERTISEMENTS:

The prevalence of widespread distress in the country, the growing

volume of rural debt and the machinations of the money-lender led to
certain voluntary efforts in the field of rural credit. In the Madras
Presidency were organised ‘Nidhis’ or Mutual-Loan Associations.

Based on the Co-operative Principle, these associations achieved

considerable success. By 1901, there were 200 nidhis with more than
36000 members and subscribed capital of more than 2 crores of
rupees. In the Punjab, a society on co-operative lines was started as
early as 1891 at Panjawar in Hoshiarpur district for controlling .
The common land of the village for the benefit of the co-sharers and
functioned (ill 1922 when the land was partitioned. Another society
started in 1895 embraced 22 villages? The state of Mysore introduced
Agricultural Banks’ in 1894, while U.P. saw the establishment of
village banks and the beginnings of distributive co-operation.

All these efforts were purely voluntary, strictly non-official, and, at

best, enjoying only govt’s patronage. The first official step was taken
when Sir William Wedderburn made, after the Deccan riots, the
proposal for the establishment of agricultural banks as a remedy
against rural indebtedness.

ADVERTISEMENTS:

In 1881, some Bombay capitalists drew up a scheme for starting an

agricultural bank in Poona. Even a bill to that effect was introduced in
the Legislative Council by Mr. Mandlik. Meanwhile, Wedderburn tried
but failed to enlist public support for his scheme and it could not take
practical shape.
The interest of the govt. now turned to voluntary mutual credit
associations modelled on Raiffeisen co-operative societies of Germany.

In 1892, the Madras Govt. deputed Fredrick Nicholson to Germany

“on special duty for the purpose of enquiring into the possibility of
introducing into this Presidency system of Agricultural or other land
banks.”

In his Report, Nicholson stressed the point that “the substitution of

organised credit for that of the money-lender is a necessary
development of civilisation —the individual system must be
eventually passed as general wealth, order, business
confidence, and habits of business associations develop.”
As to I he form it should lake, Nicholson favoured the establishment of
co-operative societies based on Raiffeisen model. He, therefore,
summed up his report in the two words: “Find Raiffeisen.” The
Govt., however, took no immediate action on the report which was
submitted in 1895.
While Nicholson’s enquiries were in progress, Mr. Dupernex began ex-
perimenting with ‘Peoples Banks’ in U.P., Maclagan; and Crosthwaite
started similar societies in Multan district of the Punjab and Mr. Lyon
in Bengal.
The interest shown by local agriculturists in these societies and the
powerful support lent by the Indian Famine Commission (1901)
induced the govt. to set up a committee under the presidentship of Sir
Edward Law to report on the introduction of co-operative societies in
India. The Committee reported favorably in 1903 and the first co-
operative Societies Act was passed in 1904.

The main provisions of the Act were as follows:

3. The Act of 1904:

ADVERTISEMENTS:

(1) Any ten persons living in the same village or town or belonging to
the same class or tribe could form a co-operative credit society ‘for the
encouragement of thrift and self-help among the members’.

(2) Societies were classified as Rural and Urban. A society in which

80% of the total membership was agricultural was classed as rural,
and the one in which 80% of the membership was non-agricultural,
was classed as urban.

(3) Rural society was to have unlimited liability but urban societies
were free to opt for either limited or un-limited liability.

(4) Rural society was not permitted to distribute profits, but in the
case of urban societies, profits could be distributed after carrying 25%
of the net profits to the Reserve Fund.

ADVERTISEMENTS:

(5) Loans could be made only to members usually on personal security

or on the security of some immovable property.
(6) Loans could also be made by one credit society to another with the
sanction of the Registrar.

(7) No member could hold shares in a society for more than Rs. 1000.

(8) The organisation and control of the movement in each province

was put under the charge of a Registrar of Cooperative Societies.

ADVERTISEMENTS:

(9) The societies were exempted from the payment of stamp and
registration duties as well as the Income Tax.

Even with the passing of the Act, the movement did not make the
progress expected of it. By 1911, there were only 8177 credit societies
all over the country with a share capital of Rs.50.5 lakhs and a
membership of a little over 4 lakhs. For this, the fault lay with the Act
itself.

In the first place, it permitted the registration of only credit societies

but gave no legal protection to non-credit societies. Secondly the Act,
unlike the Wedderburn’s scheme of Agricultural Banks, made no
provision for mobilising urban savings for financing agricultural
operations. Institutions like central banks or unions could have been
very useful in this respect but the act did not permit their
establishment.

That is why these societies suffered from a great paucity of funds, their
entire working capital being “less than the rural indebtedness of a
single taluk in many parts of India.” In the third place, the
classification of societies into urban and rural was found to be
arbitrary, unscientific, and highly inconvenient.

ADVERTISEMENTS:
Fourthly, the prohibition regarding the distribution of profits in rural
unlimited societies was a hardship especially in the Punjab and
Madras where share capital had become important.

Fifthly and lastly, a good many provisions of the Act of 1904, as

interpreted by the Courts, became a hindrance to the further spread of
the movement. These drawbacks were removed by the passing of the
second Co-operative Societies Act in 1912.

4. The Act of 1912:

Under this Act:
(1) Any society, credit or otherwise, could be registered which had as
its objective, the promotion of the economic interest of its members.

(2) A federal society like the central Bank or union could be registered.

(3) Unless otherwise directed, the liability of central societies was to be

limited and that of rural credit societies un-limited.

(4) No member could have more than 1/5 of the total share capital or
hold share exceeding Rs. 1,000 in such a society.

(5) The societies were granted exemption from compulsory

registration and from the payment of income tax and stamp duties.

(6) 1/4 of the net profits of a society were to be carried to its reserve
fund.

(7) Co-operative Societies were given the first claim to enforce the
recovery of certain dues.

(8) Requirements of annual audit were retained, as were numerous

other provisions of the Act of 1904.

The enlargement of the functions infused fresh life into the movement
and it did not “take long to outgrow the dreams of its founders.” The
number of co-operative societies rapidly grew to 15000 and their
membership to 6,95,000 in 1914.

A number of new societies sprang up for such purposes as the sale of

agricultural produce, cattle insurance, the purchase of seeds, manures
and implements, and the promotion of irrigation projects. District
unions of primary societies and central banks began to be established.
Loan, policy was liberalised and, from 1914, co-operative societies
were authorised to grant loans even for ‘domestic occasions.’

5. Maclagan Committee:
These fast changes rapid growth obliged the govt. to take stock of the
situation and, accordingly, a committee headed by Sir Edward
Maclagan, was appointed in 1915, to study and report whether the
movement was proceeding on economically and financially sound
lines.

The Maclagan Committee, in its report, emphasised the need for

proper selection of members, knowledge of co-operative principles,
honesty, proper audit, careful scrutiny of loan applications, one man,
one vote, thorough audit to prevent bad management and
embezzlement and prompt repayment of loans.

Its report, submitted in 1915, resulted in reorganization and thorough

overhauling of the whole administration of Co-operation. Attempt was
made to eliminate societies which did not live up to the ideals of co-
operation, and in particular, to insist upon prompt repayments.

Under the Reforms Act of 1919, co-operation became a transferred

subject with the result that the control and direction of the movement
passed entirely into the hands of the new Provincial govts.

This gave the movement the advantage of greater flexibility since it

could now be adapted in accordance with the needs of every province.
Besides, advanced provinces could no longer be held back by the
backward ones.

Several provincial govts, set Up special enquiry committees, important

among them being the Oakden Committee of U.P., King committee of
C.P., Townsend committee of Madras and the Calvert committee of
Burma.

Many provinces, realising the inadequacy of the Act of 1912, decided to

replace it with acts of their own. Bombay govt. was the first to have a
separate Act in 1925 followed by Burma and Madras which enforced
their separate acts in 1927 and 1932 respectively.

The Royal commission on Agriculture also emphasised the need for

strengthening the movement for, according to it, the best hope for
progress and prosperity of the agriculturist in India lay in co-
operation. “If co-operation fails, there will fail the best hope of rural
India.”

It was this deep and comprehensive realisation of the difficulties of

cooperative movement that led the govt. of India to establish an
Agricultural Credit Department in the Reserve Bank of India in 1935.

The period between 1913-14 to 1927-28 was one of substantial

progress in the field of cooperation. The number of societies increased
from 14881 to 96091, membership from 6.96 lakhs to 37.80 lakhs and
working capital from rupees 7.44 crores to rupees 76.70 crores.

In other words, the growth was by over 6 times in the number of

societies, more than 5 times in membership and by about 10 times in
working capital. The period is also significant for the birth of the Land
Mortgage banking in India, the first such bank having been
established at jhang in the Punjab in 1920.

Heartening as the progress was, the movement was yet inadequate. It

affected a small proportion of the rural population ranging from 1.8%
in U.P., to 36.2% in coorg. Among the major provinces, the Punjab and
Bombay stood highest with a record of 11% and 10% respectively while
U.P., and C.P. stood at the bottom with only 1.8% and 2.4% of the
rural population having been covered by the movement.

Broadly, the movement made greater progress in the roytwari areas of

Punjab, Bombay and Madras where the agriculturist had mortgageable
rights in land than in the zamindari areas of U.P., Bihar and Orissa
and Bengal where he had nothing to offer but his personal security.

6. The Depression and the Co-Operative Movement in India:

The onset of the depression ‘imposed on the movement a much
severer strain than it had ever had to face before’. The precipitate fall
in the prices of agricultural commodities adversely affected the
economic condition of the agriculturists.

Their repaying capacity dwindled. The demand for loans increased

while the proportion of overdoes mounted up from 20% in 1927—28 to
40% in 1932—33. In Madras, more than 60% of the short-term loans
fell in arrears.

This threw the entire movement in a very precarious state with many
societies and central banks winding up their affairs. An investigation
by Sir Darling showed that up to the end of 1934, 24% of the total
number of societies started since the beginning of the movement had
gone into liquidation—the percentage varying from 9 in Bengal to 49
in C.P. and Berar.

The timely help provided by some of the provincial govts, considerably

helped the movement to tide over the crisis created by the depression.

7. The Second World War:

With the rise in prices and the return of agricultural prosperity during
world war II, a new chapter opened in the progress of the movement.
Between 1938-39 and 1945-46, the number of societies rose from 1.22
lakhs to 1.72 lakhs; membership from 53.7 lakhs to 91.6 lakhs and
working capital from rupees 106.45 crores to 164.0 crores.

This amounted to a 41% rise in the number of societies, 70.6% in

membership and 54% in working capital.

The progress may also be judged from the fact that in 1945-46, there
was one society for very 3.8 villages and 10.6% of their population as
against only one society for 5.4 villages and 6.2% of their population in
1938—39.

The overdoes were repaid and the demand for new loans fell with the
result that many societies and central banks came to possess surplus
funds for which they were keen to find profitable outlets of
investment.

The most notable contribution of the war was the shifting of emphasis
from credit to non-credit aspect of the movement, the percentage of
non-credit societies having increased from 17 in 1938—39 to 23 in
1945-46.

The shortage of consumer articles like sugar, cloth, Kerosene and

matches led to the establishment of a large number of consumer’s Co-
operative Stores. Similarly, many new types of producers’ societies like
weavers’ co-operative societies marketing societies, Fruit grower and
cane-Grower societies, Motor transport societies came to be formed.

The war period also saw a growing trend towards the establishment of
multipurpose co-operative societies.

In short, the war broadened the functional range of the movement and
brought about a shift from the lopsided emphasis on the credit aspect
to the productive and distributive functions or to its multipurpose
potentialities and thereby imparted that ‘richness and balance’ which
was so necessary for its proper development.
8. The Co-Operative Planning Committee:
In 1945, the govt. appointed the cooperative planning committee to
draw up a plan of cooperative development in the country. The
committee, which was presided over by R.G. Saraiya, fixed an overall
target of bringing 50% of the villages and 30% of the rural population
within the scope of the movement in a period of ten years.

With the achievement of Independence and the advent of planning,

the role of cooperatives underwent a radical change.

Co-operation no longer signified a ‘series of activities organised on

cooperative lines’ but it was acknowledged as an organisation that
could play ‘a very useful role in the promotion of economic and social
democracy and in the implementation of democratic planning in the
country.’

In order to equip the movement for its new role, it was necessary to
formulate a long term policy in regard to its structure and
organisation. It was in this context that the Rural credit survey
Committee was appointed in 1951.

The committee put forward an integrated scheme of rural

credit based on:
(a) ‘State partnership at different levels;’

(b) ‘Full coordination between credit and other economic activities,

especially marketing and processing;’

(c) And administration through adequately trained and efficient

personnel, responsive to the needs of the rural population. This
scheme was approved and accepted as the basis for the future
development to be incorporated into the second Five year plan.

A notable shift in policy occurred in 1958 when the National

Development Council passed a ‘drastic and sweeping’ resolution”
which in effect, led to the rejection of the old large-sized credit society
and the emergence of small sized ‘Service Cooperatives’.

Over the period of the three Plans, the co-operative movement made
rapid progress.

The number of societies of all types increased from 1.8 lakhs to 3.47
lakhs; membership rose from 137 lakhs to 503 lakhs and their working
capital expanded from Rupees 276 crores to rupees 2800 crores. In
other words, there was a near-doubling of the number of societies, a
more than 3½ times increase in membership and a more than 10
times rise in working capital.

This growth was, however, not equally shared among all the states.
The progress was more marked in the Stales of Maharashtra, Gujarat,
Tamil Nadu, Punjab and Madhya Pradesh. The movement was,
however, weak in the eastern region comprising the states of Assam,
Bengal, Bihar, Orissa, Manipur and Tripura.

The uneven progress was reflected in wide differences in the per capita
loan distribution to rural population which ranged all the way from
rupees 33 in Maharashtra to just two rupees in Bihar and Assam.

A most welcome development during the plan period was the

diversification of the movement. A major breakthrough was witnessed
in the field of agricultural marketing and processing. The development
of consumer’s Stores and industrial co-operatives was also significant.

This can be judged from the fact that in 1965-66 the number of stores
stood at 13077, membership at 33.32 lakhs and sales at 162.30 crores
of rupees. In the sphere of industrial co-operatives, there were 78
sugar factories, 142 rice mills, 155 cotton ginning and pressing
societies, 298 oil crushing and 329 Paddy husking societies in 1965-
66.

The co-operative movement, during a span of over six decades, had

come a long way. From humble beginnings in 1904, it had expanded
into a mammoth organisation covering 85% of villages and 33% of the
rural population of the country. In 1961-62 it met 25.8% of the credit
needs of the agriculturists as against 3.1% in 1951-52.

The average Loan advanced per member had increased from rupees 44
in 1950-51 to rupees 137 in 1965-66. Apart from providing finance, the
movement had diversified into such fields as agricultural production,
marketing and processing, small and medium industries, housing,
transport, and distribution of essential commodities.

And yet it failed to ‘convulse’ the country. More than 60% of the rural
population was still outside its fold and for nearly 75% of his credit
needs, the cultivator was dependent on agencies other than the co-
operative society.

The movement had neither materially reduced the burden of the

agricultural’ debt nor their dependence on the money-lender. It even
failed to improve their self-reliance, resourcefulness, or capacity for
concerted action. In the words of Dr. Gadgil, “over large areas, was
a sense of disillusion regarding the actual performance of
the co-operatives.” What was the cause? Where had the movement
gone wrong?

9. Causes of Slow Progress:

i. Lack of Knowledge:
Knowledge of the principles of co-operation is an essential condition
for the success of the movement. In most cases, however, this
condition was not fulfilled. Members did not understand and
appreciate the aims, objectives, and the possibilities of the movement.
They joined a society only as ‘clients of convenience’ and deserted it
after their needs were met. There was no genuine urge to develop the
movement.
ii. Small Size:
An other reason for the poor performance of the movement was that
“a large number of primary agricultural credit societies were neither
viable nor even potentially viable and must be regarded as inadequate
and unsatisfactory agencies for dispensing production oriented
credit.”

iii. Rapid Growth:

The qualitative aspect of the movement suffered on account of the
‘waves of promotional enthusiasm’ which superimposed co-operative
societies by the thousands on villages where patient work had not laid
the foundations for successful growth. This policy of hurried
expansion or ‘target hunting’ led to the formation of a number of
societies which were either still born or suffered an early death.

iv. Uninspiring Leadership:

A major factor responsible for the poor performance of the movement
was the lack of “competent leaders on a scale commensurate
with the considerable expansion” that took place in the
movement.
The leadership thrown up by the movement was inadequate,
incompetent, faction-ridden and lacking in knowledge, integrity, and
dedication. No wonder, that the movement continued to be dominated
by money-lenders and others who used its funds to promote their own
ends, financial or political.

v. Lack of Supervision, Audit and Inspection:

Another defect was that the co-operative societies were neither strictly
supervised nor properly audited. From non-existent or ineffective
supervision arose many other weaknesses such as ‘book adjustment of
debts, bogus loans, misutilisation of credit, and failure to effect
recoveries’ and window-dressing. Even where accounts were properly
audited, audit objections were seldom attended to.
vi. Lack of Spontaneity:
To co-operative movement was officially sponsored in 1904. Ever since
its birth, it remained govt., controlled, govt. financed and govt.
directed. This rigid official control and interference did great harm in
the sense that it provided few opportunities for the people to learn to
do things for themselves, to develop a spirit of self-reliance and self-
dependence.

In the words of Pandit Nehru, “if govt., money comes, that

money is followed by govt. officials the petty official
becomes not only the petty boss but big boss.” The movement,
therefore, functioned at best as a govt., department ; it never
developed into a genuine people’s movement.
vii. Lack of Proper Atmosphere:
Co-operation is a democratic movement based on the principle of
equality. But the socio-economic background of the Indian village,
especially in areas with long-standing feudal relations, was hardly
conducive to its proper functioning and healthy growth.

The caste system, inadequate spread of literacy, and types of land

tenures prevailing in certain areas, prevented the co-operative
institutions from operating strictly in accordance with democratic
principles. This was particularly the case where there were large
disparities between members not only in economic terms but also in
respect of factors such as influence, authority and social status.

The movement would have succeeded had it incorporated a frontal

attack on the existing power structure in the village. It instead aimed
at improving conditions without disturbing the socio-economic set up.
No wonder, the movement failed to take roots or grow rapidly.

viii. Piecemeal Approach:

According to Dr. Gyan Chand, the failure of the movement was largely
due to co-operation having been conceived and worked in a
‘fragmentary way’. Rural credit, marketing, small industries, better
farming, production and distribution of milk, animal husbandry,
irrigation, processing all were treated in isolation; the interrelations of
these activities or their bearing on one another or on the rural
economy as a whole were never kept in mind. This “gravely
hampered in the realisation of their potential.”
ix. Defective Loan Policies and Procedures:
Loan policies and procedures followed by co-operative institutions
were not adopted in accordance with the much publicized crop-loan
system. Loans were mostly given on the security of land and not on
anticipated crop.

The entire amount was given out in lump sum instead of being paid in
instalments; loans were generally given in cash and not in kind. In
addition, there were inordinate delays in the disbursement of loans.
These defective, cumbersome, and dilatory procedures and policies
made the societies unpopular and stood in the way of the speedier
growth of the movement.

x. Structural Obsolescence:
The co-operative organisation was based on the principle of federalism
under which local societies were federated into a secondary society
which, in turn, federated into a tertiary and finally a national society.

Whatever its other advantages, this system, in practice, became ‘self-

defeating’ in as much as the weaknesses of the local unit got pooled at
the secondary society level with the result that the secondary
institutions, instead of facilitating the working of the primaries,
became a drag on them.

xi. Inefficient Management:

Most of the general ills from which co-operative institutions suffered
such as the lack of proper accounting, irregularities of loans,
maintenance of records, were largely due to a lack of trained and
qualified staff. In 1965-66, only 14% of the societies had full-time paid
secretary—manager.

Even the working of higher institutions suffered on account of the

dearth of trained and qualified personnel. Despite the introduction of
training programme, the quality of staff in the cooperative institutions
had not attained a high standard of efficiency.

Recruitment was not based on merit but on a candidate’s capacity to

pull wires. That is why there were complaints of inefficiency, graft,
corruption and accumulation of over-dues.

xii. Absence of Self-Help:

One of the major failures of the movement was its inability to develop
the habit of thrift and savings amongst its members. This may be seen
from the fact that, in 1965-66 the share of borrowings in the working
capital of credit societies was 66%, the percentage of owned funds to
working capital being only 27%.

This means that the movement was not self-sufficient or self-financing

but had degenerated into a conduit for channeling stale funds. This too
much dependence on slate finances had made the co-operative
societies “a semi-state organisation in which there was hardly
any initiative, auto activity, or autonomy__”.
xiii. Over-Dues:
Another very disquieting feature of the movement was the incidence of
over- dues. From a small figure of rupees six crores in 1950-51, they
mounted to rupees 125 crores in 1965-66, recording a more than 20
times increase. The proportion of over-dues to out standings also went
up from 22% in 1950-51 to 29% in 1965-66.

Even in an advanced state like Maharashtra, over dues constituted

21% of the outstanding loans in 1964-65. It was the failure in this
respect (over dues) that mainly accounts for the stagnation in the
movement.

xiv. Vested Interests:

A more disturbing trend, however, was the domination of co-operative
institutions by group politics. Communalism and casteism were other
factors eating into its vitals.
The result was that either a society did not do much work or there was
favouritism and nepotism in the grant of loans restricting the benefits
to favoured members. There were instances where members of rival
faction persuaded people not to repay their dues.

As commerce pointed out, the sudden rise of over-dues in 1961—62

was directly connected with the general election of 1962. Political
interests were thus affecting the working of co-operative institutions in
various ways causing credit to be denied to certain groups and
providing it to others in violation of all rules in force. This led Jaya
Parkash Narain to condemn co-operative societies as “tools of self-
aggrandizement.”

xv. Benefit to the Rich:

The gravest flaw of the movement was that it had become ‘a
combination of the strong not for the week but against them.’ It had
been almost completely captured by the rich and middle farmers with
the result that credit went beyond the reach of precisely those who
needed it the most but whose assets were scanty.

On the other hand, it was readily available to the few men of means. In
the yeotmal district of Maharashtra in 1965-66, only one percent of the
total area covered by short term credit belonged to holders of five
acres and less while 65.7% belonged to holders of 20 acres and above.
Co-operative credit thus became an instrument for accentuating rather
than mitigating inequalities.

The most fundamental cause responsible for the failure of the

movement was the basis of credit. While in theory, co-operative credit
was personal-credit based upon the character and repaying capacity of
the cultivator; in actual practice, a higher proportion of the advances
in many cases was against the security of land.

The landless peasants and agricultural workers, who need credit the
most but have no land to offer, received little benefit. They, therefore,
turned to the moneylender.
 These imperfections and weaknesses notwithstanding, the co-
operative movement in India still remains an excellent potential
instrument for the economic and social emancipation of the poor and
the weak. If the movement did not achieve the required degree of
success, it was not because the principles of cooperation were not
sound, but because “these were honoured more often in their
neglect than in their execution.”

Related Posts:
1. 4 Institutional Agencies of Rural Credit in India
2. 5 Major Sources of Rural Credit in India
3. Essay on Co-Operative Farming in India
4. Trade Union Movement in India
by Taboola

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TAMIL NADU COOPERATIVE UNION

A PROFILE

The cooperative movement in Tamilnadu has grown and spread like a banyan tree and
taken deep roots since 1904 when the first cooperative societies act was enacted in the
country, and is closely linked with the day to day affairs of the people. In order to help the
growth of cooperatives and spread the knowledge of its achievements among the people
and shape their minds, 20 State Cooperative Unions were established in the country and
Tamilnadu Cooperative Union is one among them. Tamilnadu Cooperative Union was
started on 4.1.1914. The first President of the Tamilnadu Cooperative Union is
Thiru.M.Adhinarayana Ayya.
Objects

 To Develop the Cooperative Movement.

 To impart Cooperative Education.and Training to cooperators, employees and
members of Cooperative Societies and general public.
  To arrange for meetings, seminars, conferences, discussions etc. in connection with
the Cooperative Movement.

 To carry out publicity works through publishing magazines in English and Tamil.

 To arrange to print pamphlets, statistical statement, telephone hand book etc.,

relating to Cooperative Movement.

 To arrange for imparting training to the office bearers, employees and officers of
the Cooperative Societies.
To assist in the establishment of new cooperative organisations.

 To act as an Information and Public Relations agency for providing information on

Cooperative Movement.

 To propagate the ideals of Cooperation through short films/slides, video tapes etc.

 To give wide publicity about the policies, programme and achievements of

cooperative movement through posters, stickers, banners and tom tom, etc.

 To maintain Cooperative Research and Development Fund and Cooperative

Education Fund.

 To arrange for exhibitions depicting the achievements of Cooperative Movement.

Administration

 The administration of the Tamilnadu Cooperative Union is being carried out by an

elected board of directors from 7.10.2013.

Membership

 29 District Cooperative Unions in Chennai, Kancheepuram, Tiruvallur, Vellore,

Cuddalore, Tiruvannamalai, Villupuram, Salem, Namakkal, Dharmapuri, Erode,
Coimbatore, Nilgiris, Karur, Perambalur, Trichy, Pudukkottai, Thanjavur, Tiruvarur,
Nagapattinam, Dindigul, Madurai, Theni, Ramanathapuram, Virudhunagar,
Sivagangai, Tirunelveli, Thoothukudi and Kanniyakumari distircts are the members of
Tamilnadu Cooperative Union.

 24 Apex Cooperative Institutions viz., Tamilnadu State Cooperative Apex Bank,

Tamilnadu Cooperative State Agriculture and Rural Development Bank, Tamilnadu
Handlooms Weavers Cooperative Society (Co-optex), Tamilnadu Cooperative
Marketing Federation, Tamilnadu Consumer Cooperative Federation, Tamilnadu State
Urban Cooperative Banks Federation, Tamilnadu Palm Products Cooperative
Marketing Federation, Tamilnadu Cooperative Spinning Mills Federation, Tamilnadu
Cooperative Sugar Federation, Tamilnadu Cooperative Housing Federation,
Tamilnadu Agro Engineering and Service Cooperative Federation, Tamilnadu
Industrial Cooperative Bank, Tamilnadu Cooperative Oil Seeds Federation, Tamilnadu
Milk Producers Cooperative Federation, Tamilnadu Cooperative Textiles Spinning
Mills, Sattur Match Box Producers Industrial Cooperative Society, Sivakasi Industrial
Cooperative Offset Press Society, Tamilnadu Rubber Cooperative Society, Tamilnadu
Coir Marketing Cooperative Federation, Tamilnadu Handicraft Products Cooperative
Marketing Federation, Tamilnadu Cooperative Plastic Society, Tamilnadu Mattress
 Products manufacturers Cooperative Society are also the members of Tamilnadu
Cooperative Union.

Statutory Funds

 The Cooperative Research and Development Fund (CRDF) at 3% and Cooperative

Education Fund (CEF) at 2% contributed by the profit earning cooperative societies
out of its net profit as per section 72 of the Tamilnadu Cooperative Societies Act,
1983 is administered by a Committee in accordance with Rules 90 and 91 of
Tamilnadu Cooperative Societies Rules, 1988. These funds are maintained by the
Tamilnadu Cooperative Union.
 As per the above mentioned rules, 29 District Cooperative Unions retain 10% of the
total collection of Cooperative Research and Development Fund and Cooperative
Education Fund every month and remit the 90% collection to Cooperative Research
and Development Fund.

 Cooperative Reserach and Development Fund Committee is constituted to administer

the statutory funds consists of Registrar of Cooperative Societies as its Chairman,
Special Officer of Tamilnadu Cooperative Union as its Secretary and the Functional
Registrars as members.

 As per the guidelines approved by the CRDF Committee on 9.1.2009, the Committee
releases grants and interest free loans for the following purposes:

Grant
• Research oriented works
• Pilot project works
• Works requiring modern technology
• Project Reports
• For technology development, if necessary

Interestfree Loan
• For providing infrastructural facilities including buildings
• Development works of new societies
• Development of new business
• Rejuvenating weak societies
• For technology development works
• Business development and marginal money assistance

100% grant is being released from Cooperative Eduction Fund for the following purposes

• Cooperative Education and Training

• Cooperative Publicity
• Cooperative a Propoganda

During the year 2014-15, Cooperative Research and Development Fund of Rs.20.02 crores
and Cooperative Education Fund of Rs.13.18 crores has been collected from the societies
under the control of all the Functional Registrars. Approximately a sum of Rs.1.66 crores for
CRDF and RS.1.09 crores for CEF is being collected per

Cooperative Complex
Permission has been accorded to Tamilnadu Cooperative Union to release interest free loan
of Rs.10.00 crores from Cooperative Research and Development Fund to construct
Cooperative Complexes in 10 districts viz., Tiruvannamalai, Sivagangai, Perambalur, Nilgiris,
Kancheepuram, Kanniyakumari, Thanjavur, Coimbatore, Erode and Tiruvarur at Rs.1.00
crore each and steps have been taken for construction.

Permission has been accorded to Tamilnadu Cooperative Union to release interest free loan
of Rs.5.00 crores from Cooperative Research and Development Fund to construct 5
Cooperative Complexes in Tiruvallur, Dharmapuri, Cuddalore, Karur and Pudukkottai at
Rs.1.00 crore each steps have been taken for construction in the second phase.

Own Building

Tamilnadu Cooperative Union is housed in its own building at N.V.Natarajan Maaligai,

Chennai-10. The O/o. the Registrar of Cooperative Societies is functioning at Union’s own
building at a monthly rent of Rs.92,042/-. Plan approval for construction of Guest House at
Tamilnadu Cooperative Union’s vacant place in Anna Salai is obtained and steps have been
taken for construction work.

Publications

The Tamilnadu Cooperative Union is publishing “Kootturavu” a Tamil monthly journal,

“Tamilnadu Journal of Cooperation” an English monthly journal and “Madhamirumurai
Kootturavu Murasu” a Tamil fortnightly and propagates the ideals of Cooperative movement
through these journals.

These journals carry news items and articles on Government functions attended by Hon’ble
Chief Minister and Hon’ble Ministers. Government schemes, achievements, circulars and
circulars of Registrar of Cooperative Societies are also published in the journals.

These journals publish news pertaining to Cooperative Banks, Cooperative Marketing

Societies, Cooperative Stores and Public distribution system and also carry articles on
Cooperation, Agriculture, Dairy, Handloom Cooperatives, Banking, Horticulture, Sericulture,
Government policies and general subjects and also serve as a means to educate the public.
The journals have wide range of subscribers including Cooperative societies, Institutes of
Cooperative Management, Cooperators, Students, Cooperative Institutions in other states
etc. all over the country.

The above three journals participated in the “Best Cooperative Journal Award Competitions”
instituted by the National Cooperative Union of India, New Delhi. The State Cooperative
Unions all over the country also participated in this competition.

The Tamilnadu Journal of Cooperation has bagged the first Prize in this prestigious
competition for its outstanding performance in 2004. Besides this, the other two journals
Kootturavu and Madhamirumurai Kootturavu Murasu were also honoured with certificate of
Merit and awards in the following years.

The Tamilnadu Cooperative Union published Kootturavu, Tamilnadu Journal of Cooperation

and Madhamirumurai Kootturavu Murasu.
The annual subscription of Rs.110/- is being collected for both monthly journals. A sum of
Rs.40/- is being collected for the Tamil fortnightly. A life subscription of Rs.1,000/- is being
collected since January 2002 for a period of 10 years for the monthly journals and Rs.300/-
for fortnightly.

Publicity and Public Relations

The State Union celebrate the All India Cooperative Week every year in a grand manner.
During this celebration, the union distributes shields to the best working cooperative
societies and organises blood camps, eye camps, medical camps, environment cleaning
camps and planting of saplings etc., in order to make the cooperative movement a people’s
movement.

During the year 2010-11 the number of publicity and propaganda works carried out by the
Union as follows:

Member Education Programme 2184

Coop. Awareness Programme for Youth 312
Programme on AIR 678
Programme on TV 643

Apart from this, cooperative pavilions are erected to highlight the progress achieved by the
cooperative department through animated models depicting the various activities of
cooperatives under the control of the Functional Registrars in the Exhibitions organised by
the Information and Tourism Department at Chennai and District headquarters.

The Tamilnadu Cooperative Union also participates every year in the procession of tableaux
organised on the eve of the Republic Day celebrations by the State Government in Chennai.

The District Cooperative Unions with the financial assistance and guidance of the Tamilnadu
Cooperative Union conduct small exhibitions in the districts at the time of local festivals,
summer festival and highlights the progress made by the cooperatives and ensure
awareness among the rural people. Besides this, sector wise seminars and conferences are
also being conducted every year at District and State levels.

Exhibition materials

The Tamilnadu Cooperative Union prepares models and exhibition materials explaining the
functions and achievements made by the societies under the control of Registrar of
Cooperative Societies and Functional Registrars and supplies the same to the District
Cooperative Unions for display at the time of Cooperative Week Celebrations and
Cooperative functions, besides erecting Cooperative Pavilion on behalf of Cooperation
Department at the All India Tourism and Trade Fair every year.

Posters, Stickers and Banners

Posters, stickers and banners explaining the functions of various types of cooperative
societies are prepared and being supplied to the District Cooperative Unions during the
Cooperative Week Celebrations.

Laminated Photos
Laminated photos, detailing the functions of various types of cooperative societies are
prepared and being supplied to the District Cooperative Unions during the Cooperative Week
Celebrations.

Invitation Cards

Invitation cards for the Cooperative Week Celebrations are prepared

and being supplied to the District Cooperative Unions every year.
EDUCATION AND TRAINING

Institute of Cooperative Management

The Tamilnadu Cooperative Union imparts cooperative education and

training to those having an involvement in cooperative movement and
disseminates information through various means so as to provide them
employment opportunities in cooperative institutions. The Institute of
Cooperative Management are started to impart training compulsorily in
order to get employment opportunity in primary level to apex level
cooperatives. In Tamilnadu, there are 20 Institutes of Cooperative
Management, functioning as units of Tamilnadu Cooperative Union as
mentioned below:-

1 The Principal, 11 The Principal

Ramalingam Institute of Co-op. Management, Nagercoil Institute of Co-operative
Alagesan Road, Saibaba Mission Post, Management, Pattasaliyan Villai.
Coimbatore - 641 011. Kanyakumari District,
Ph : 0422-2442186 Nagercoil - 629 002. Ph : 04652-265132
2 The Principal, 12 The Principal,
Samiappa Institute of Co-op. Management, Sivagangai Institute of Co-operative
Medical College Road, Thanjavur - 613 007. Management, 32, Weekly Market Road,
Ph : 04362- State Bank Near, Sivagangai - 630 561.
238253 Ph : 04575-243995
3 The Principal, 13 The Principal,
Vellore Institute of Co-op.Management, Villupuram Institute of Co-op.
No.2, East Cross Street, Gandhi Nagar, Management, 2/1006, Ellis Chathiram
Vellore - 632 006. Salai,
Ph : 0416-2242464 Vazhuthareddy, Trichy Main Road,
Villupuram - 605 401.
Ph : 04146-259467
4 The Principal, 14 The Principal,
Medai Dalavai Kumarasamy Institute of Co-op. Namakkal Institute of Co-operative
Management, Udaya Nagar, Govt. Staff New Management, C/o.Namakkal Agricultural
Quarters, N.G.O. New Colony, Tirunelveli - 627 Producers Co-operative Marketing
007. Society, Namakkal - 637 001.
Ph : 0462-2552695 Ph : 04286-280908
 5 The Principal, 15 The Principal,
Nachiappa Institute of Co-operative Management, Dindigul Institute of Co-op.
Cuddalore Main Road, Management, 3/367, Palani Road,
Kamaraj Nagar, Salem - 636 014. Pyepass Near,
Ph : 0427-2240944 Dindigul - 621 001. Ph : 0451-2441460
6 The Principal, 16 The Principal,
Pandianadu Institute of Co-operative Trichirappalli Institute of Co-operative
Management, Thiru Nagar, Madurai - 625 006. Management,
Ph : 0452-2482261 No.1 Old Good Shed Road, Amaravathy
Co-operative Super Market Complex,
Trichirappalli - 620 002.
Ph : 0431-2715748
7 The Principal, 17 The Principal,
Thiagi Sankaralinganar Institute of Co-op Thiruvarur Institute of Co-operative
Management, Sivasakthi Thirumana Mandapam Management,
(Opp.To P.R.C.Depot) 130, Palivasal Vijayapuram,
S.R.Naidu Nagar, Sattur - 626 203, Thiruvarur - 610 001.
Virudhunagar District. Ph : 04366-227233
Ph : 04562-260293
8 The Principal, 18 The Principal,
DR.M.G.R. Institute of Co-operative Management, Thiruvannamalai Institute of Co-
Appavoo Street, Near New Cinema, operative Management,
Cuddalore, South Arcot - 607 001. 204, Tindivanam Slaai, Navakari,
Ph : 04142-222619 Kilnachipatty Post,
Thiruvannamalai - 606 611.
Ph : 04175-254793
9 The Principal, 19 The Principal
Perarignar Anna Institute of Co-operative Erode Institute of Co-op.Management,
Management, Door No.2318, Veluchamy Veethi,
Vandavasi Road, (Opp) Collectorate Office, Municipal Colony, Erode - 638 001.
Kancheepuram - 631 501. Ph : 0424-2213666
Ph : 04112-27237699
10 The Principal, 20 The Principal,
Dharmapuri Institute of Co-operative Theni Institute of Co-op.Management,
Management, Morappur - 635 305, C/o. Andipatti Primary Agricultural Co-
Arur Taluk, operative Bank Complex,
Dharmapuri. Balakombai Road, Andipatti - 625 512,
Ph : 04346-263529 Theni District.
Ph : 04546-244465
Out of the above Institutes of Cooperative Management, 8 Institutes at Coimbatore,
Dharmapuri, Kancheepuram, Madurai, Salem, Thanjavur, Tirunelveli and Vellore are
functioning in their own building.

At present, new buildings are being constructed for Nagercoil, Sivagangai and Tiruvarur
Institutes of Cooperative Management.

Diploma in Cooperation (Correspondence)

These institutes offer Diploma (Cooperation) in correspondence mode for the benefit of
employees of all cooperatives who have not undergone training. In 2010-11, 1060 students
were undergone Diploma in Cooperative Management (DCM) in correspondence mode.
Short Duration Courses

These institutes also run short duration courses for the benefit of cooperative department
staff and employees of cooperatives. 322 short duration course programmes were
conducted during 2010-11 and 5,438 persons have benefitted.

Job Oriented Courses

Jewel appraisal and its techniques

 Since issue of jewel loans is a major business in cooperative institutions, a course on

‘Jewel appraisal and its techniques’ was introduced from 2004-05. 1858 persons
have undergone this course in 2010-11.

Computer Courses

 As computerization is the order of the day, these institutes also offer short term
courses in various fields of computer applications such as DCA, MS Office, Tally 9.0
and DTP and the fees collected for these course is Rs.3,000/- Rs. 1,000/- Rs.3,600/-
and Rs.2,000/- respectively and the duration of the course in 6 months and 2
months. About 1164 persons have undergone this course in 2010-11.

Craftsman and Food Production (General) Course

 As part of fresh initiative, a certificate course “Craftsman and Food Production

(General)” was newly introduced in 2008-09 in nine Institutes of Cooperative
Management. The fees collected for these course is Rs.15,000/-. (in two instalments)
During the year 2010-11, 41 persons have undergone this course.

Skill Development Programmes

 The Tamilnadu Cooperative Union in association with TREC-STEP, which is a

Government of India organisation started imparting Diploma in Computer Hardware
Technology, Diploma in Air Conditioner and Refrigeration, Diploma in Electrical
Maintenance and Certificate course on Mobile Phone Services to the employees and
members of Cooperative societies and general public from 2011-12 in all the
cooperative educational institutes. The duration of the course is 3 months for the
first 3 courses and 6 weeks for the certificate course. The fees collected for these
courses are Rs.6,000/- , Rs.5,000/- , Rs.5,500 respectively.

Spoken English Course

 Tamilnadu Cooperative Union in association with “VETA”

started imparting “Spoken English Course” to the employees,
members of cooperative societies and General Public from
2011-12 in all the cooperative educational institutes. The fees
for this course is only Rs.2,500/- and the duration of the
course is 2 months.
 TAMIL NADU COOPERATIVE UNION
A PROFILE

U.G./P.G. Courses

Similarly in association with Bharathiar University, Coimbatore, Under Graduate and Post
Graduate degree courses like B.Com., BBA, MBA, MCA etc. were introduced in all the
Institutes of Cooperative Management from 2009-10. Around 663 students have been
admitted to the various courses such as B.Com., BCA, BBM, B.Sc., MBA, MCA etc., in
2010-11.

Higher Diploma in Cooperative Management

The Chennai based Natesan Institute of Cooperative Management and the

Madurai based Institute of Cooperative Management are run with the
resources provided by the Tamilnadu Cooperative Union and the National
Council for Cooperative Training, New Delhi. 36 weeks higher diploma
training in Cooperative Management is provided to graduate students. In a
year, over 100 trainees undergo such training. The Tamilnadu Cooperative
Union is bearing 50% cost of the General Scheme in respect of Institute of
Cooperative Management, Madurai and full cost of short term courses
conducted by the Madurai and Natesan Institutes of Cooperative
Management.

S. District Name & Address of ICM Phone No.

No.
1. Chennai The Director, 044 –
Natesan Institute of Coop. 26221423
Management,
2377 A, Anna Nagar West,
Shanthi Colony, Anna Nagar,
Chennai-600 040.
2. Madurai The Director, 0452 -
Institute of Cooperative 2690055
Management,
Chinnaudaippu Post,
Madurai – 625 022.

Cooperative Industrial Training Institutes

In order to promote self employment avenues among the unemployed

youths, three Cooperative Industrial Training Institutes were established by
Tamilnadu Cooperative Union under cooperative sector, at Bargur in
Krishnagiri District from 1992, at Pattukkottai in Thanjavur District from
1992 and at Thiruchuli in Virudhunagar District from 1997.

S. District Name & Address of ITI Phone No.

No.
1. Thanjavur The Principal, 04373-223806
Pattukkottai Coop.Industrial Training
Institute,
Regulated Marketing Centre Complex,
Palayam, Thanjavur Road,
Pattukkottai -614 601.
2. Krishnagiri The Principal, 04343-265652
Bargur Coop.Industrial Training Institute,
Madha School, Bargur – 635 704,
Krishnagiri District
3. Virudhunagar The Principal, 04566-282514
Tiruchuli Coop.Industrial Training Institute,
No.5/158, Thirubuvanam Salai,
Tiruchuli – 626 129.
Virudhunagar District.

The following courses are provided in the above three Cooperative Industrial Training
Institutes.

1. Computer Operator and Programming Assistant

2. Cutting and Tailoring
3. Dress Making
4. Electrician

The fees collected for these courses is Rs.2,625/-, Rs.2,135/-, Rs.2,135/- and Rs.6,655/-
and the duration of the course is 1 year and 2 years respectively.

The 50% of seats are reserved for the wards of the members as well as employees of
cooperatives for admission into the above Cooperative Industrial Training Institutes. No
capitation fee is collected from the trainees.

During 2010-11, 166 students were imparted training through these 3 Industrial Training
Institutes.

Lalgudi Cooperative Polytechnic College

The Tamilnadu Cooperative Union with the permission of the All India
Council Education, New Delhi started a Cooperative Polytechnic College at
Lalgudi in Trichirappalli district.
 S. District Name & Address Phone No.
No.
1. Tiruchirappalli The Principal, 0431-2543249
Lalgudi Coop. Polytechnic
College,
Ayyanvaikkal Salai,
Aankarai Village,
Lalgudi-621 703.
Tiruchirappalli District

The Cooperative Polytechnic College was started during the academic year 2000-2001
(9.10.2000) with the following Diploma Programmes.

1. Computer Engineering - 60 Students (Intake per year)

2. Mechanical Engineering - 60 Students (Intake per year)
3. Electrical and Electronic Engineering - 60 Students (Intake per year)

During 2010-11, 217 students were imparted training on the above subjects through
Polytechnic. This Polytechnic college is running as self reliant unit.

Future Plans

 To computerise the functions of Tamilnadu Cooperative Union Head Office, 29

District Cooperative Unions, 20 Institutes of Cooperative Management, 3 Industrial
Training Institutes and One Polytechnic.
 To construct own buildings to the Institutes of Cooperative Management which are
running in rental buildings.

 To complete the construction work of Cooperative Office Complex in 10 Districts

under the schme of construction of Cooperative Office Complex for all Districts.

 To modernise the class rooms and to develop the infrastructure facilities in all
Institutes of Cooperative Management where the professional courses are being
conducted.

Tamilnadu Cooperative Union serves in the field of Cooperative Training, Education,

Publicity and Propaganda which ultimately leads to development of Cooperative Movement
in the State.