History of Co-operatives

The history of co-operatives is very old. In ancient times, there were four cooperative institutions known as ‘KULA’, ‘GRAMMA’, ‘SHRENI’, and ‘JATTI’. Our joint family system, in which all the members of the family live together for their betterment is a fine example of co-operative institution. In such a system (Joint Family System), all the members are insured against incapability, illness and old age. In the modern times, we find the cooperatives in all the fields of production,processing, marketing and distribution. Like the other industries/enterprises, in the milk trade too, we have producer co-operatives at the village level, processing cooperatives at the district level known as the Milk Union and the marketing/distribution Co-operatives at the State level known as Federation.

i. Need of Co-Operatives

Whether it is production, processing or marketing, the producers/individuals are exploited at all levels. As the saying goes, the big fish swallows the small one. It is true in agriculture field, the traders exploit the individuals to pocket the major share of profit leaving the producers poor at the lower end. In milk trade too, the business of milk production is in the hands of innumerous producers belonging to all the category, viz. marginal, small, medium and large producers and the landless cultivators/agricultural labour and artisans. These producers individually produce a small quantity of milk. A part of it is consumed at home and only the surplus milk available with the producers goes for sale. The quantity of the product produced being very small cannot be marketed by an individual since it requires lot of time, labour and resources. With the result he has to sell his produce to an intermediary- the milk Vendor. The milk Vendor exploits the producers by giving them low prices, under weighing the product, not providing any incentive, faulty payments, lifting the milk at his convenience, and more particularly avoiding the evening procurement of milk. All this forces the producers to unite together not only to produce the product but to process and sell it unitedly. The Co-operatives have come into existence at consumers level as Consumers Co-operative Societies to get rid of exploitation from the monopolistic producers. Similarly the co-operatives have come into existence at other levels viz. processing and sales/ marketing and distribution.

ii. Advantages of Co-operatives

Co-operatives came into existence and took its roots because of the inherent advantages laid down as under:

•  Prevents exploitation of the poor
•  Promotes people initiative, mutual interest and self help. Ensure proper use of resources-human, material and financial.
•  Forms effective link between producers and consumers.
•  Improves production, productivity and quality.
•  Provides the consumers with good quality product at a comparatively lower rate and competitive prices.
•  Since the resources are pooled, the capital and other constraints are reduced to some extent.
•  Many programmes like availability of inputs required for the production process can be started at the village level and can be delivered from producer to producer as per his requirements.
•  Links the members of the society to outside world for increasing their benefits.