Notes: Cooperatives | Sociology Mains Optional for UPSC 2024 PDF Download

 Page 1


 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
C (ii) Rural and Agrarian transformation in India 
Cooperatives 
Evolution of Coops in India – 
Existed before Independence as well. Coop. started in Germany, 1890s. 
 
First Plan –  
• Only recommendary in nature.  
• Small and Medium farmers to be encouraged for coops.  
• CDP had cooperativisation in agenda. 
 
Second Plan –  
• More concrete.  
• A 10 years horizon for bringing half of the agri under it.  
• Myths created that China achieved tremendous success in agri because of coop. 
Myth broken after Mao’s death in 1976, their agri growth rate less than India’s. 
• Still, India under Nehru emulated Chinese example of coops and envisioned 
institutional changes in agriculture which didn’t ask for much financial outlay. Nehru 
pressurized but states wary. 
 
Third Plan –  
It mellowed down the ambition. 10 pilot projects per district.  
Targeted coops in: 
• Credit 
• Marketing 
• Distribution 
• Processing 
 
 
  
Page 2


 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
C (ii) Rural and Agrarian transformation in India 
Cooperatives 
Evolution of Coops in India – 
Existed before Independence as well. Coop. started in Germany, 1890s. 
 
First Plan –  
• Only recommendary in nature.  
• Small and Medium farmers to be encouraged for coops.  
• CDP had cooperativisation in agenda. 
 
Second Plan –  
• More concrete.  
• A 10 years horizon for bringing half of the agri under it.  
• Myths created that China achieved tremendous success in agri because of coop. 
Myth broken after Mao’s death in 1976, their agri growth rate less than India’s. 
• Still, India under Nehru emulated Chinese example of coops and envisioned 
institutional changes in agriculture which didn’t ask for much financial outlay. Nehru 
pressurized but states wary. 
 
Third Plan –  
It mellowed down the ambition. 10 pilot projects per district.  
Targeted coops in: 
• Credit 
• Marketing 
• Distribution 
• Processing 
 
 
  
 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
Structure and Significance of Coops – 
 
Various type of coops.  
80% with agri.  
60% for credit only.  
 
Broadly, 2 groups – 
• Credit Societies 
• Non-credit Societies 
 
Both further into two – 
• Agricultural Societies 
• Non-agri societies 
 
For supervision and financial assistance– 
State coop banks and Centre Govt. banks. 
 
 
Coops essential because – 
 
A B C D approach 
A – Accessibility 
B – Bureaucratic hassles to be decreased 
C – Class conflicts to be decreased 
D – Development -> illiterate, Poverty, women  
• Accessible by small and cottage industries. 
• Reduces bureaucratic and political hassles. 
• Softens class conflicts. 
• An institution for illiterate, poor and unskilled. 
Page 3


 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
C (ii) Rural and Agrarian transformation in India 
Cooperatives 
Evolution of Coops in India – 
Existed before Independence as well. Coop. started in Germany, 1890s. 
 
First Plan –  
• Only recommendary in nature.  
• Small and Medium farmers to be encouraged for coops.  
• CDP had cooperativisation in agenda. 
 
Second Plan –  
• More concrete.  
• A 10 years horizon for bringing half of the agri under it.  
• Myths created that China achieved tremendous success in agri because of coop. 
Myth broken after Mao’s death in 1976, their agri growth rate less than India’s. 
• Still, India under Nehru emulated Chinese example of coops and envisioned 
institutional changes in agriculture which didn’t ask for much financial outlay. Nehru 
pressurized but states wary. 
 
Third Plan –  
It mellowed down the ambition. 10 pilot projects per district.  
Targeted coops in: 
• Credit 
• Marketing 
• Distribution 
• Processing 
 
 
  
 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
Structure and Significance of Coops – 
 
Various type of coops.  
80% with agri.  
60% for credit only.  
 
Broadly, 2 groups – 
• Credit Societies 
• Non-credit Societies 
 
Both further into two – 
• Agricultural Societies 
• Non-agri societies 
 
For supervision and financial assistance– 
State coop banks and Centre Govt. banks. 
 
 
Coops essential because – 
 
A B C D approach 
A – Accessibility 
B – Bureaucratic hassles to be decreased 
C – Class conflicts to be decreased 
D – Development -> illiterate, Poverty, women  
• Accessible by small and cottage industries. 
• Reduces bureaucratic and political hassles. 
• Softens class conflicts. 
• An institution for illiterate, poor and unskilled. 
 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
97th Amendment -> 19 (1) ( C )  
243 (B) -> Cooperatives  
Coop. word added after Trade Urbans 
 
Limitations– 
 
Daniel Thorner:  
• Coops formed as a result of evading LR by rich and influential families. Evading 
ceiling and tenancy laws. Land tilled by bogus members, mainly wage labour. Also 
cornered subsidies - Evading LR 
• State coop farms had poor quality land given to landless and lower castes. Extremely 
high cost of running them proved fatal for their success - Poor quality land’s high 
cost Dominant caste Public money to -> Private 
• Reinforced the unjust Indian social structure when dominant caste overtook 
leadership positions. 
• A case of public money given to private investment. 
• A very small percentage(less than 10%) of credit to small and marginal farmers - 
Very less small farmers 
• A large bureaucracy crept into coops as well - Bureaucracy crept in Populist Policies 
• Populist policies to write-off debts burdened exchequer and eroded the viability of 
rural credit instis. 
 
World bank Study on Operation flood : Anand Pattern– 
 
• Paid rich dividends. Need to replicate it elsewhere. 
• Milk growth from 0.7% pa to 4%. 
• 60% farmers small and marginal. 
• “Self-Selection” – an imp observation – by focusing a project on a predominant 
activity of poor, “self-selection” is likely to result in a majority of the beneficiaries 
being poor thus reaching target groups.  
• Milk coop reached poor irrespective of caste, religion or gender. A major politico-
economic implication. 
• A byproduct of Op Flood is creation of indigenous dairy equipment mfg industry and 
an impressive body of indigenous experts. Indigenisation considerably cheap. 
Page 4


 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
C (ii) Rural and Agrarian transformation in India 
Cooperatives 
Evolution of Coops in India – 
Existed before Independence as well. Coop. started in Germany, 1890s. 
 
First Plan –  
• Only recommendary in nature.  
• Small and Medium farmers to be encouraged for coops.  
• CDP had cooperativisation in agenda. 
 
Second Plan –  
• More concrete.  
• A 10 years horizon for bringing half of the agri under it.  
• Myths created that China achieved tremendous success in agri because of coop. 
Myth broken after Mao’s death in 1976, their agri growth rate less than India’s. 
• Still, India under Nehru emulated Chinese example of coops and envisioned 
institutional changes in agriculture which didn’t ask for much financial outlay. Nehru 
pressurized but states wary. 
 
Third Plan –  
It mellowed down the ambition. 10 pilot projects per district.  
Targeted coops in: 
• Credit 
• Marketing 
• Distribution 
• Processing 
 
 
  
 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
Structure and Significance of Coops – 
 
Various type of coops.  
80% with agri.  
60% for credit only.  
 
Broadly, 2 groups – 
• Credit Societies 
• Non-credit Societies 
 
Both further into two – 
• Agricultural Societies 
• Non-agri societies 
 
For supervision and financial assistance– 
State coop banks and Centre Govt. banks. 
 
 
Coops essential because – 
 
A B C D approach 
A – Accessibility 
B – Bureaucratic hassles to be decreased 
C – Class conflicts to be decreased 
D – Development -> illiterate, Poverty, women  
• Accessible by small and cottage industries. 
• Reduces bureaucratic and political hassles. 
• Softens class conflicts. 
• An institution for illiterate, poor and unskilled. 
 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
97th Amendment -> 19 (1) ( C )  
243 (B) -> Cooperatives  
Coop. word added after Trade Urbans 
 
Limitations– 
 
Daniel Thorner:  
• Coops formed as a result of evading LR by rich and influential families. Evading 
ceiling and tenancy laws. Land tilled by bogus members, mainly wage labour. Also 
cornered subsidies - Evading LR 
• State coop farms had poor quality land given to landless and lower castes. Extremely 
high cost of running them proved fatal for their success - Poor quality land’s high 
cost Dominant caste Public money to -> Private 
• Reinforced the unjust Indian social structure when dominant caste overtook 
leadership positions. 
• A case of public money given to private investment. 
• A very small percentage(less than 10%) of credit to small and marginal farmers - 
Very less small farmers 
• A large bureaucracy crept into coops as well - Bureaucracy crept in Populist Policies 
• Populist policies to write-off debts burdened exchequer and eroded the viability of 
rural credit instis. 
 
World bank Study on Operation flood : Anand Pattern– 
 
• Paid rich dividends. Need to replicate it elsewhere. 
• Milk growth from 0.7% pa to 4%. 
• 60% farmers small and marginal. 
• “Self-Selection” – an imp observation – by focusing a project on a predominant 
activity of poor, “self-selection” is likely to result in a majority of the beneficiaries 
being poor thus reaching target groups.  
• Milk coop reached poor irrespective of caste, religion or gender. A major politico-
economic implication. 
• A byproduct of Op Flood is creation of indigenous dairy equipment mfg industry and 
an impressive body of indigenous experts. Indigenisation considerably cheap. 
 
www.YouTube.com/SleepyClasses 
Sleepy Classes 
• Women empowerment – along with SEWA Ela Bhatt and others 6000 Women Dairy 
Coop Socs. 
• Demand driven education, schooling, infra etc. 
• Impetus to various other brands, eg – Dhara (NDDB effort in vegetable oils). 
 
For writing in Essays or otherwise while highlighting diversity of India- 
Kurien–  
A Syrian Christian from Kerala Working in Gujarat.