A A
I am now accessing as a :

Government Of Assam Cooperation Registrar of Cooperative Societies Assam

Cooperatives in Urban & Rural Areas
Home ❯ Cooperatives in Urban & Rural Areas ❯ Cooperatives in Rural Economy

Cooperatives in Rural Economy

Mahatma Gandhi said that future of India lies in its villages. Unfortunately, Assaminspite of being an agrarian society with around 70% of its population still residing in the villages lags behind in many economic and social sectors. Rural sector being the major contributor to the overall GDP of the nation means that a lack of development in villages means lack of development in India.

Cooperative societies are playing significant role in this and share a major credit in the growth of rural sector which along with government and private sectors contribute to the overall economy of India. Cooperatives encompass almost all activities of rural economy and thus have tremendous potential as well as need major impetus from the government for the rural economy to thrive.

Cooperatives originated in the West during the middle of the last century and from there these came to India. Formally co-operatives were introduced to India in 1904 when the Indian Co-operative Societies Act was promulgated. The first Credit Cooperative society in Assam was the Shillong Co-operative Town Bank in 1904. Other banks which were subsequently formed were RajahauliGaolia Bank, Jorhat; CharigaonGaolia Bank, Jorhat and Jorhat Town bank Ltd. After Independence, cooperative was made into a state subject and the Govt. Of Assam passed the Assam Co-operative Societies Act 1949. However, much progress wasn’t made in this sector in the state and hence it was only in 1972, the then Chief Minister Late Sarat Chandra Sinha initiated the idea of “Singe Window” approach so that the farmers can avail of agricultural credit and essential commodities from the same society. Because, of such a policy decision, Assam became the first state to channelize the public distribution of essential commodities through the GaonPanchayatSamabaiSamities/Primary Agricultural Cooperative Societies (GPSS/PACS). Eventually with the era of liberalisation and globalisation ushering in, policy changed at the national level and vide the 97th Constitutional Amendment cooperatives were brought under the purview of the Constitution, wherein inter alia, formation of cooperatives was recognised as a constitutional right of ever Indian Citizen. A large number of states consequently, passed state legislations which conferred greater autonomy and independence in terms of management and functioning of the Cooperatives. The Assam Cooperative Societies Act was passed in 2007, which came into force in 2012.

Main aim of the cooperative was to get the poor and indebted farmers out of poverty and out from the clutches of money lenders. Within short span of time, role of cooperatives extended beyond agricultural credit. They are now engaged in supply of seed and fertiliser products, implementation of deposit mobilization scheme to encourage thrift and credit among the members of the societies. With more than 9000 in number inAssam, Cooperatives are now playing a very significant role in the socio-economic development of our country especially the rural India. In India there are four major types of cooperatives in rural areas:

  • The Primary agricultural credit or service societies
  • Agricultural non-credit societies
  • Co-operative farming societies
  • Other agro-based cooperative societies- Diary, Fishery, Horticulture, Handloom, Sericulture and ones promoting local handicrafts and artisans. For instance, Assam Coop. Bell Metal Utensil & Manufacturing Society Ltd in Sarthebari, Barpeta which is one of the oldest registered Society of the State, provides a platform as well as means of marketing to the local artisans engaged in that craft.
 

Keeping in sync with modern means of standardisation and accounting, an MOU has been signed by the Govt. Of Assam with NABARD and Govt. Of India, wherein a Common Accounting System (CAS) as formulated by NABARD has been in introduced in all PACS/GPSS of the state to bring about uniformity and transparency in the accounting system. As a result of the, the GPSS have now become eligible for availing fresh finances from concerned bank branches for the purpose of providing crop loan to the framer members of the societies.

Scope of cooperative societies in rural India can improve further with women participation. In this regard, the role of Self Help Groups (SHGs) needs special mention as they not only bring in financial autonomy and education amongst rural women but also, give them a platform to earn a source of livelihood, organise and voice their concerns and hone their traditional skills and arts. SHGs has improved the access of women to credit and helped women in reducing their dependence on moneylenders. In this regard, the cooperation department in coordination with the National Rural Livelihood Mission, is making endeavours to bring these SHGs under the fold of cooperatives to bring in more standardisation.

Apart from agricultural credit and other agro-based requirements, farmers also get marketing, warehousing facility and transportation support from the cooperatives. Service cooperative societies help the poor and marginal farmers with tractors, threshers etc on rent. Rural cooperative societies are now entering into real estate, power, insurance, healthcare and communication sector in certain states. If these keep on working with an objective of development then days are not far when quality of rural life would be far better than urban India.