Contents
Preface
I. Introduction
II. Meanings and Objectives
III. Origin and History
IV.
Committee on Consumer Cooperatives (1961)
V. Introduction of New Schemes (1962)
VI. Progress of Various Schemes
VII.
Present Structure of Consumer Cooperatives
VIII.
Problems of Consumer Cooperatives
IX.
Future of Consumers' Cooperatives
X. Conclusion
Preface
Consumer's cooperation is a very wide term and includes consumers supply societies, consumers thrift societies, cooperation insurance societies etc. These societies were originally organized to restrict unfair trading practices of private retailers and to prevent the consumers from exploitation of the various measures taken by the government to hold the price line. The development of the consumer cooperative stores has by far attracted the greatest attention.
Dr. K. T. Chandy, Agricultural & Environmental Education
I. Introduction
Consumer cooperative societies are of a recent origin in this country. Indian economy being predominantly agricultural, its production is dependent on the vagaries of the monsoon and very often there is partial failure of crops in one or more regions. Again, in the event of such shortfalls in domestic production, the wholesalers and retailers often create artificial shortages. Apart from that, the tendency of private trade to increase profit margin is more pronounced in such situations. The government, therefore has promoted consumer cooperatives as an alternative channel of distribution to exercise a healthy influence on individual distributors. Although consumer cooperatives were organized even earlier, they increased in number rapidly during the Second World War and during the immediate post war years owing to the encouragement from the government.
With the advent of modem market economy the position has radically changed and growing number of market functionaries have interposed themselves, adding to the margins at various stages. The result is that, now there is often a considerable price-spread between the producer and the consumer. Cooperatives of producers on the one hand and the consumers on the other, offer one of the practical means of reducing this price-spread; Of the various measures taken by the Government to hold the price line, the development of the consumer cooperatives has by far attracted the greatest attention.
II.
Meaning and Objectives
A consumer co-operative is a voluntary organisation of consumers,
organised to obtain their requirements of consumer goods and
services on terms of greatest advantage to them. This type of
cooperative undertakes retailing, wholesale trading, and sometimes
the production and processing of consumer goods. Most of the
consumer stores have been established on the principles enunciated
by the Rochdale pioneers. These principles are open membership,
democratic control, cash trading on a market prices, fixed on
capital and dividend on purchases.
The
main objective of a consumer store is to serve its members and
customers with goods required by them for household consumption.
It is expected to provide goods at a reason- able price and
to protect the interest of the members. These stores are also
expected to stabilize the price line and check: the exploitation
of the consumers by the private businessmen.
III. Origin and History
The consumers cooperative movement owes it origin to the famous
Rochdale cooperative store established in 1844 in Britain. The
success of the consumer movement is so well known, that it needs
no detailed description. The movement has flourished in other
European countries also but it did not make any headway in this
country till the Second World War which gave a stimulus to this
form of cooperation. Acute shortage and high prices of food
grains and other necessities of life during the war and post
war period, made controlled rationing a great necessity. It
were the cooperative institutions which were considered to be
the best agencies to make fair distribution of such goods and
check black marketing. This movement has achieved spectacular
success in some of the western countries like Sweden, Denmark,
Finland and Britain.
In India consumer cooperatives did not make much head- way before
the First World War. It was only during the war period that
some consumer stores were started in Madras and Bombay. It jumped
from 11 in 1914 to 103 by 1920-21. This was a temporary phase
of expansion as it slackened subsequently. It was only during
the Second World War that the store movements made giant strides.
The reversion to decontrol and the consequent functioning of
the free economy, however dealt a heavy blow to these stores.
The process of disintegration and liquidation which has set
at the time of decontrol, continued unabated up to 1961. The
number of consumer stores fell from 9,757 in 1950-51 to 7,050
in 1960-61, while the membership fell from 18.45 lakhs to 13.41
lakhs both recording a fall of about 27 per cent.
In short, it can be. stated that, the progress of consumer cooperative
stores was quite fair up to 1951-52, when the government followed
a policy of decontrol and de-rationing in view of the improved
position of supplies. The prices of essential goods began to
register a sharp downward trend. The consumer cooperatives had
to suffer a great loss due to fall in prices.
IV. Committee on Consumer Cooperatives (1961)
Majority of the 7000 consumer cooperatives existing at the end
of the second plan were not working satisfactorily and those
working were operating in a small way. The need for revitalizing
the existing consumer cooperative structure and organization
of new stores was keenly felt. In November 1960, the National
Cooperative Development and Warehousing Board the predecessor
of the National Cooperative Development Corporation appointed
a committee under the chairmanship of Dr. P. Nateson to review
the existing position and to examine the promotional and organizational
aspects of consumer co- operatives with a view of ensuring their
sound and speedy development under the Third Five Year Plan.
The committee made a number of recommendations regarding organizational
structural pattern of consumer cooperatives, size and viability
the need for strong wholesale stores, improvement of managerial
efficiency, business technique and government assistance. These
recommendations were generally accepted by the government.
