Reasons for weakness of the cooperative movement/cooperatives in India

Q.  Some of the reasons for weakening of the cooperative movement/cooperatives in India are

1) Over-bearing role and intervention from the Government
2) Politicization of cooperative leadership
3) Lack of professional management of societies

- Published on 11 Jul 16

a. 1, 3
b. 1, 2
c. 2, 3
d. All of the above

ANSWER: All of the above
 
Few reasons of weakness are -
  • There has been an over-bearing role and intervention from the Government, as cooperatives become instruments for delivery of goals set by the Government rather than a people’s movement of self-help.
  • The politicization of cooperative leadership eroded the welfare aspect of the movement. Cooperatives are often seen as a stepping stone for their political objectives.
  • The small size, the poor resource base and the low participation in the Primary Agricultural Credit Societies (PACS), which has been a significant barrier to increasing the efficiency and volume of credit flows through them.
  • The lack of professional management of societies to improve governance.
  • Looking at the variations in the regional intensity of the cooperative movement, it becomes apparent that cooperatives have done well in areas where land reform had met with a greater degree of success. This would indicate that sovereign control of farmers over land, the primary factor of production in agriculture, remains an essential prerequisite for the success of cooperatives. At the same time, there is possible link of the cooperative movement’s success to the prevalent demographic and cultural factors.

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