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Role Of Cooperatives In Agribusiness Development

PRESENTED BY : NIKUNJ DOBARIYA

ASPEE AGRIBUSINESS MANAGEMENT INSTITUTE, NAU,NAVSARI

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IntroductionWhat is Cooperative?A farm, business, or organization which is owned and run jointly by its members, who share the profits or benefits.

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7 Principles Of CooperativesVoluntary and open membershipDemocratic member controlEconomic participation by membersAutonomy and independenceEducation, training and informationCooperation among cooperativesConcern for community

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 Importance Of Cooperatives

Cooperatives promote the fullest possible participation in the economic and social development of all people and are a major economic force in developed countries and a powerful business model in developing ones. It can play a particular role in empowering women and fighting forms of gender discrimination.It provide much-needed goods and services, including health care,education,water and housing.

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Advantages Of CooperativesOwnership and Democratic ControlIncrease Farmers’ IncomeQuality of Supplies and ProductsExpanded MarketsImproved Farm ManagementLocal Leadership DevelopmentAdded Community Income

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Cooperatives Related To Agribusiness Sector

Milk Producers CooperativesFertilizer CooperativesFisheries CooperativesFarming CooperativesCooperative Banks

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Example of

Milk Producers

Cooperatives

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AMUL

AMUL - Anand milk union ltd.

Amul formed in 1946, is a dairy cooperative movement in India. Dr. Verghese Kurien volunteered to help in setting up a processing plant. It is a brand name managed by an apex cooperative organisation, Gujarat Co-operative Milk Marketing Federation Ltd.(GCMMF) Its daily milk procurement is approx. 14.85 million lit per day from 18,536 village milk cooperative societies, 17 member unions covering 31 districts, and 3.37 million milk producer members.

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Conti…..The Amul model has helped India to emerge as the

largest milk producer in the world. More than 15 million

milk producers pour their milk in 1,44,500 dairy

cooperative societies across the country. Their milk is

processed in 184 District Co-operative Unions and

marketed by 22 State Marketing Federations, ensuring a

better life for millions.

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Example of

Fertilizer

Cooperatives

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IFFCOIFFCO - Indian Farmers Fertilisers Cooperative Limited (IFFCO)Registered on November 3, 1967 as a Multi-unit Co-operative Society. Plants owned by IFFCO- Kalol, Kandla(GUJARAT),Phulpur (Uttar Pradesh),

Paradeep(Orissa). Contributes 20 % of country’s total nitrogenous fertilizer production and 25 % of total phosphate fertiliser production.

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KRIBHCO KRIBHCO - Krishak Bharati Cooperative Limited

Established in 5th February 1982. Is a premier Cooperative

Society for manufacture of fertilizer, registered under Multi-State

Cooperative Societies Act-1985 Was promoted by the Govt. of

India, IFFCO, NCDC and other agricultural Cooperative societies.

KRIBHCO has setup a Fertilizer Complex to manufacture Urea,

Ammonia & Bio-fertilizers at Hazira( Surat, Gujarat).

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Example ofFisheries Cooperatives

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GFCCAGFCCA - Gujarat Fisheries Central Co-operative Association LimitedIt is a head cooperative body of the fishermen cooperatives in Gujarat. It was established in the year 1956. Marketing of fresh water fish and marine fish in wholesale and in retail through its different outlets and mobile vans. 

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Cooperative Bank

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Cooperative Bank The cooperative banks are small-sized units which operate both in urban and non-urban centers. They finance small borrowers in industrial and also professional and salary classes. Regulated by the Reserve Bank of India, they are governed by the Banking Regulations Act 1949 and banking laws (co-operative societies) act, 1965.

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Conti…..The cooperative banking structure in India is divided into following 5 categories:

SCB – State Cooperative Bank

DCCB – District cooperative central bank

PACS – Primary Agricultural Cooperative credit Societies

CLDB – Central Land Development Bank

PLDB – Primary Land Development Bank

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Farming Cooperatives

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TRIFED TRIFED - Tribal cooperative marketing federation It was established in 1987 to develop the system of marketing of forest produced by tribals in the india.TRIFED arranges marketing & export of minor forests products produced by the tribals in the tribal dominated areas & protects the tribals from exploitation.

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NAFED NAFED - The National Agricultural Cooperative Marketing Federation of India.It was established in October, 1958It deals in procurement, processing, distribution, export & import of selected agricultural commodities.It is also the nodal agency for undertaking price support operations for pulses & oilseeds and market intermediation operation for other agricultural commodities.

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ConclusionAgribusiness cooperatives are playing a big role in

growth of agribusiness sector in India. Agribusiness

is affected by a mass of factors including institutions

and organisations. Cooperatives are considered an

important instrument of agribusiness development

in developing countries including India.

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