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Dr. Dinesh , Chief Executive National Cooperative Union of India

1 st Asia-Pacific Cooperative Registrars’ Conference, 10-12 December 2013, Kaula Lumpur, Malaysia PRESENTATION ON Ensuring Financial Sustainability of PACS Through Enabling Regulation and By-Laws . Dr. Dinesh , Chief Executive National Cooperative Union of India.

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Dr. Dinesh , Chief Executive National Cooperative Union of India

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  1. 1st Asia-Pacific Cooperative Registrars’ Conference, 10-12 December 2013, Kaula Lumpur, Malaysia PRESENTATION ON Ensuring Financial Sustainability of PACS Through Enabling Regulation and By-Laws Dr. Dinesh, Chief Executive National Cooperative Union of India

  2. COOPERATIVE VALUES ARE AS FOLLOWS : Self-help; self-responsibility; equality; equity; democracy; solidarity; Plus ethical values of honesty, openness, and social responsibility. • COOPERATIVES ARE ALSO GUIDED BY SEVEN PRINCIPLES • Voluntary and open membership; • Democratic member control; • Member economic participation; • Autonomy and independence; • Education, Training and information; • Cooperation among cooperatives; • Concern for community.

  3. Members/GB BOD Chairman/Committees Chief Executive Managers/Staff Govt. Legislations and other supports Communities Regulatory authorities / Registrars Competitors Customers/ consumers Suppliers

  4. Interrelationship among Stakeholders ENVIRONMENT Members Potential Members Customers Communities BOD International Factors / Agencies Govt. Management Suppliers Bankers Values : Self Help, Self responsibility, Democracy, Equality, Equity and Solidarity Ethical Values : Honesty, Openness, Social Responsibility and Caring for others

  5. Interrelationship among Stakeholders ENVIRONMENT Members Potential Members Customers Communities BOD International Factors / Agencies Govt. Management Suppliers Bankers Values : Self Help, Self responsibility, Democracy, Equality, Equity and Solidarity Ethical Values : Honesty, Openness, Social Responsibility and Caring for others

  6. Cooperative Movement in India • Cooperative movement started in 1904. • There are about 0.6 millions cooperative societies with over 240 million members in the country. • About 100% villages and 71% rural households are attempted to be covered by these cooperative societies. • Around 46% of total sugar production comes from Cooperative Sugar Mills. • 26.5% fertilizer is produced by the Cooperatives. • Cooperatives are also playing vital role in the areas of milk production, oil seeds, cotton, handloom, fisheries etc. • 35% fertilizer is distributed by cooperatives. • 16% of agricultural credit in the country is distributed by cooperatives. • Providing Market Support to farmers. • Involved in distribution of Agricultural inputs. • Imparting cooperative education and training etc. • The year 2012 was declared as International Year of Cooperatives by United Nations and Indian Cooperative Movement celebrated the same in befitting manner.

  7. Share of Important Coop. in National Economy Villages Covered by PACS 97% Agricultural Credit Disbursed by Coops. 16% Fertilizer Distribution 36.0% Fertilizer Production 26.3% Sugar Production 46.1% Wheat Procurement 33.5% Animal Feed Production/supply 50% Retail Fair Price Shops (Rural+Urban) 20.3% Milk Procurement to Total Production 7.85% Ice Cream Manufactured 45% Handlooms in Cooperatives 54.0% Fishermen in Cooperative (active) 23.0% Storage Facility (Village level PACS) 67.2%

  8. Types of Cooperative Legislation in India • Multi-State Cooperative Societies Act • State Cooperative Societies Act • Mutually Aided Cooperative Societies Act

  9. First Cooperative Enactment Cooperative Credit Societies Act 1904 In 2002 Multi State Coop. Societies Act 1984 was Amended & MSCS Act 2002 & Rules 2003 is in Force Today Amended in 1912 to Include Non-Credit Coop. Societies Evolution and Various Phases of Cooperative Legislation in India In 1919 Cooperation was declared the State subject and states Formulated their own enactment Multi State Coop. Societies Act 1984 and Rules 1985 were formulated Repealing MUCS Act 1942 In 1942 Multi-Unit Coop. Societies Act was Incorporated as an Enabling Act for those Societies whose area of Operation was more than one State.

  10. ORGANISATIONAL STRUCTURE NATIONAL LEVEL COOPS. (20) STATE LEVEL COOPS. (390) DISTRICT LEVEL COOPS. (3571) PRIMARY LEVEL COOPS. (606059)

  11. Total Membership of Cooperatives in India (263.6 million) Membership of Primary Agricultural Credit Cooperatives (181.2 Million) Membership of Primary Non-Credit Cooperatives ( 68.2Million)

  12. Creation of Enabling Environment for Cooperatives • National Policy on Cooperatives • Amendment of Multi-State Cooperative Societies Act 2002 • Share capital contribution in cooperatives • Sizeable budgetary support for Cooperative Education and Training • 97th Amendment of Indian Constitution Act 2011 giving status to cooperative

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