Cooperatives are expected to build up an organised system for
under developed agricultural growth in particular and rural development
in general. Specifically, the areas of effective contribution can be
enumerated as given below:
1. Transfer of technology: While agricultural cooperatives
have obviously no role in the generation of agricultural
technology, conceptually they can play a significant part in
transferring such technology to the former members. In
Japan, for instance, it is a normal function of the unit
cooperatives to provide what is known as farm guidance. In
the Republic of Korea also, agricultural cooperatives plays a
distinct role in this regard. In Democratic People Republic of
Korea (DPRK) cooperative farms have their own specialists
for providing on the spot guidance. In India, in a few sectors
such as sugarcane and milk the specialised cooperatives
have played significant role in providing agricultural know
how. The contribution IFFCO in this direction needs to be
appreciated.
2. Fertiliser production and distribution: Cooperatives can
help to a great extent in consumption of chemical fertilisers.
In the Republic of Korea as well a DPRK, 100 per cent of the
chemical fertiliser is supplied to farmers by cooperatives. In
Japan, nearly 90 per cent of the fertiliser is accounted for
cooperative distribution. In India, the latest share of
cooperatives is reported to be around 43 per cent.
3. Irrigation: The role of cooperatives in the spread of irrigation
is subject to obvious limitations. In case of surface irrigation
involving large dams, necessarily the responsibility remains
with public agencies or government departments. However,
in respect of minor irrigation, particular ground water, when
the source of water are owned by individual farmers, the
cooperatives can play a significant role through agricultural
credit for investment in tube wells and pump sets. Besides
India, in the Republic of Korea, irrigated farmers associations
are doing a great job in promoting water development and
water use for new crops. In fact, no surface irrigation works
is owned by the government but all are owned land operated
by farmers associations set up under a special law.
4. Organised marketing: Effective implementation of
agricultural price policy requires an organised marketing
infrastructure. This is an aspect where the cooperative can
deliver a lot in India. During the past two decades, the
development of agricultural cooperative marketing structure
is found in Japan and the Republic of Korea. In these
countries the share of cooperatives in overall agricultural
marketing is very substantial. In Japan, more than 90 per
cent of rice is handled by cooperatives, whereas in China
supply and marketing cooperatives, have virtually monopoly
in marketing of commercial crops such as tobacco.
5. Processing of agricultural produce: The processing units
organised in farmers cooperatives are an essential adjunct to
the overall agricultural marketing system. In India, a
substantial share of agricultural processing in respect of
sugar, textile etc. is now in hands of cooperatives and this
necessarily experts a decisive contribution to the growth of
the relevant crops. India experience has attracted the
attention, in some other countries such as Indonesia which
is considering to establish a body similar to NCDC in India.
6. Agricultural credit: Cooperative can go a long way to
promote and strengthen institutional infrastructure for
agricultural credit. In fact, in several countries of south-east
Asia, agricultural cooperatives have played a significant role
in the countries, other institutions such as commercial bans
have tended to overshadow the role of agricultural credit
cooperatives. In India the credit cooperatives are taking
appropriate steps to ensure a continuous and smooth credit
flow to their members.
7. Package deal: In the strategy of agricultural growth a
number of elements such as agricultural technology,
agricultural extension, other inputs, credit, marketing etc.
have to come together and interact so as to set off and
sustain a growth process, it is only package of technology,
inputs and services which can ensure growth. It is in
providing such a package that the cooperative system has a
distinct advantage over other forms of organisation. There
may be other alternatives in providing individual services or
inputs, however, they are unidimensional in character. For
instance, a rural bank may offer credits but it is not designed
to offer auxiliary services and inputs. Similarly a private
dealer may offer fertiliser but is unlikely to offer agricultural
marketing and other connected services. It is the cooperative
system which conceptually designed to offer to a farmer the
entire range of inputs and services which are essential for a
modern and highly productive agriculture.
8. Equity in agricultural development: In agricultural
development while growth is crucial, equity is equally
important. As agricultural modernisation progress, the role
of externally purchase inputs such as irrigation, fertiliser,
seed, pesticides and also the role of marketing infrastructure
substantially increases. Normally private marketing agencies
tend to confine their operations in regard to fertilizer supply
etc. at points where they are assured of substantial off take.
Thus, relatively underdeveloped agricultural areas tend to be
passed and the same happens to the relatively smaller and
marginal farmer. For instance in Thailand the level of
fertilizer consumption has been stagnant around a low level
of 17 kg per hectare for quite some time. The main reason is
that the private sector, which is the main distributor of
fertilizer in the country, does not consider it worthwhile to
retail fertilizer in relatively underdeveloped areas. As such
there are substantial areas where practically no retail points
for fertilizer exist. This stagnation of fertilizer consumption
has substantially contributed to stagnation in the per
hectare yield of paddy also.
What has been in case of the chemical fertiliser also applies to the
other inputs, agricultural credit and also other services. This leads to
inequalities within different parts of the country as well as various
sections of the farming community. Small and marginal farmers account
as much as 70 per cent of more on the farming household. But their
share of crop land is not more than 25 per cent. Thus, their production
base is small. If vital inputs such as fertiliser water and credit also by
pass them, it is inevitable that disadvantaged section of the farming
community cannot get into the main stream of agricultural development.
In this context the role of agricultural cooperatives cannot be over
emphasised. That is why the first Cooperative Society Act which was
passed in 1904, specially started that it, objectives was to enable persons
of limited means to have cooperative societies for self help and mutual
aid. In many countries of our region this has been the accepted social
philosophy of cooperatives. In India also, cooperative have been referred
to as instrument of economic development of the disadvantaged
particularly in rural areas.
under developed agricultural growth in particular and rural development
in general. Specifically, the areas of effective contribution can be
enumerated as given below:
1. Transfer of technology: While agricultural cooperatives
have obviously no role in the generation of agricultural
technology, conceptually they can play a significant part in
transferring such technology to the former members. In
Japan, for instance, it is a normal function of the unit
cooperatives to provide what is known as farm guidance. In
the Republic of Korea also, agricultural cooperatives plays a
distinct role in this regard. In Democratic People Republic of
Korea (DPRK) cooperative farms have their own specialists
for providing on the spot guidance. In India, in a few sectors
such as sugarcane and milk the specialised cooperatives
have played significant role in providing agricultural know
how. The contribution IFFCO in this direction needs to be
appreciated.
2. Fertiliser production and distribution: Cooperatives can
help to a great extent in consumption of chemical fertilisers.
In the Republic of Korea as well a DPRK, 100 per cent of the
chemical fertiliser is supplied to farmers by cooperatives. In
Japan, nearly 90 per cent of the fertiliser is accounted for
cooperative distribution. In India, the latest share of
cooperatives is reported to be around 43 per cent.
3. Irrigation: The role of cooperatives in the spread of irrigation
is subject to obvious limitations. In case of surface irrigation
involving large dams, necessarily the responsibility remains
with public agencies or government departments. However,
in respect of minor irrigation, particular ground water, when
the source of water are owned by individual farmers, the
cooperatives can play a significant role through agricultural
credit for investment in tube wells and pump sets. Besides
India, in the Republic of Korea, irrigated farmers associations
are doing a great job in promoting water development and
water use for new crops. In fact, no surface irrigation works
is owned by the government but all are owned land operated
by farmers associations set up under a special law.
4. Organised marketing: Effective implementation of
agricultural price policy requires an organised marketing
infrastructure. This is an aspect where the cooperative can
deliver a lot in India. During the past two decades, the
development of agricultural cooperative marketing structure
is found in Japan and the Republic of Korea. In these
countries the share of cooperatives in overall agricultural
marketing is very substantial. In Japan, more than 90 per
cent of rice is handled by cooperatives, whereas in China
supply and marketing cooperatives, have virtually monopoly
in marketing of commercial crops such as tobacco.
5. Processing of agricultural produce: The processing units
organised in farmers cooperatives are an essential adjunct to
the overall agricultural marketing system. In India, a
substantial share of agricultural processing in respect of
sugar, textile etc. is now in hands of cooperatives and this
necessarily experts a decisive contribution to the growth of
the relevant crops. India experience has attracted the
attention, in some other countries such as Indonesia which
is considering to establish a body similar to NCDC in India.
6. Agricultural credit: Cooperative can go a long way to
promote and strengthen institutional infrastructure for
agricultural credit. In fact, in several countries of south-east
Asia, agricultural cooperatives have played a significant role
in the countries, other institutions such as commercial bans
have tended to overshadow the role of agricultural credit
cooperatives. In India the credit cooperatives are taking
appropriate steps to ensure a continuous and smooth credit
flow to their members.
7. Package deal: In the strategy of agricultural growth a
number of elements such as agricultural technology,
agricultural extension, other inputs, credit, marketing etc.
have to come together and interact so as to set off and
sustain a growth process, it is only package of technology,
inputs and services which can ensure growth. It is in
providing such a package that the cooperative system has a
distinct advantage over other forms of organisation. There
may be other alternatives in providing individual services or
inputs, however, they are unidimensional in character. For
instance, a rural bank may offer credits but it is not designed
to offer auxiliary services and inputs. Similarly a private
dealer may offer fertiliser but is unlikely to offer agricultural
marketing and other connected services. It is the cooperative
system which conceptually designed to offer to a farmer the
entire range of inputs and services which are essential for a
modern and highly productive agriculture.
8. Equity in agricultural development: In agricultural
development while growth is crucial, equity is equally
important. As agricultural modernisation progress, the role
of externally purchase inputs such as irrigation, fertiliser,
seed, pesticides and also the role of marketing infrastructure
substantially increases. Normally private marketing agencies
tend to confine their operations in regard to fertilizer supply
etc. at points where they are assured of substantial off take.
Thus, relatively underdeveloped agricultural areas tend to be
passed and the same happens to the relatively smaller and
marginal farmer. For instance in Thailand the level of
fertilizer consumption has been stagnant around a low level
of 17 kg per hectare for quite some time. The main reason is
that the private sector, which is the main distributor of
fertilizer in the country, does not consider it worthwhile to
retail fertilizer in relatively underdeveloped areas. As such
there are substantial areas where practically no retail points
for fertilizer exist. This stagnation of fertilizer consumption
has substantially contributed to stagnation in the per
hectare yield of paddy also.
What has been in case of the chemical fertiliser also applies to the
other inputs, agricultural credit and also other services. This leads to
inequalities within different parts of the country as well as various
sections of the farming community. Small and marginal farmers account
as much as 70 per cent of more on the farming household. But their
share of crop land is not more than 25 per cent. Thus, their production
base is small. If vital inputs such as fertiliser water and credit also by
pass them, it is inevitable that disadvantaged section of the farming
community cannot get into the main stream of agricultural development.
In this context the role of agricultural cooperatives cannot be over
emphasised. That is why the first Cooperative Society Act which was
passed in 1904, specially started that it, objectives was to enable persons
of limited means to have cooperative societies for self help and mutual
aid. In many countries of our region this has been the accepted social
philosophy of cooperatives. In India also, cooperative have been referred
to as instrument of economic development of the disadvantaged
particularly in rural areas.
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