{"id":6475,"date":"2019-10-11T09:30:58","date_gmt":"2019-10-11T04:00:58","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=6475"},"modified":"2020-05-02T14:07:38","modified_gmt":"2020-05-02T08:37:38","slug":"what-is-the-role-of-co-operative-society-in-rural-development","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/what-is-the-role-of-co-operative-society-in-rural-development\/","title":{"rendered":"What is the Role of Co-operative Society in Rural Development?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">When individuals having common economic, social, and cultural interests voluntarily come together to form an association, it turns into the establishment of a co-operative society. The central motive of co-operative societies is to serve the needs of underprivileged and rural sections of our community. <a href=\"https:\/\/swaritadvisors.com\/multi-state-co-operative-society-registration\"><strong>Co-operative society<\/strong><\/a> in rural areas follows the principle of mutual help and self-help to attain the objective of rural development. It is like a non-profit organization where every member joins a co-operative society to provide support instead of earning profits. An essential role of co-operative society\u2019s contribution lies in the advancement of villages.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a61a63dd7a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a61a63dd7a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-role-of-co-operative-society-in-rural-development\/#Characteristics_of_a_Co-operative_Society\" title=\"Characteristics of a Co-operative Society \">Characteristics of a Co-operative Society <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-role-of-co-operative-society-in-rural-development\/#Role_of_Co-operative_Society_in_Rural_Development\" title=\"Role of Co-operative Society in Rural Development \">Role of Co-operative Society in Rural Development <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-role-of-co-operative-society-in-rural-development\/#Types_of_Co-operative_Societies\" title=\"Types of Co-operative Societies \">Types of Co-operative Societies <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/what-is-the-role-of-co-operative-society-in-rural-development\/#Challenges_faced_by_Co-operative_Society_in_Rural_areas\" title=\"Challenges faced by Co-operative Society in Rural areas\">Challenges faced by Co-operative Society in Rural areas<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Characteristics_of_a_Co-operative_Society\"><\/span>Characteristics of a Co-operative Society <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The following features determine the co-operative societies:<\/strong><\/p>\n\n\n\n<ul><li><strong>A Separate Legal Entity<\/strong><br>A co-operative society is obliged to register itself under the Co-operative Societies Act. After registration, the co-operative society gets identified as a separate legal entity implying its existence is different from its members. <\/li><li><strong>Voluntary Association<\/strong><br>The formation of a co-operative society is only possible when all members voluntarily take responsibility to build one. Anybody with a common interest can join or create a co-operative society. Moreover, members have the flexibility to leave the association at any time by giving proper notice.<\/li><li><strong>No Personal Motive <br><\/strong>As co-operative society works together to achieve a common objective, it is indispensable for the members not to have any personal motive involved. The fundamental aim of co-operatives is to provide services to the members and not to earn profits. Maximizing the profits is an essential objective of other business organizations; while, it\u2019s not the case with co-operatives.<\/li><li><strong>State Authority<\/strong><br>The laws of the government regulate all co-operative societies. In India, a co-operative society must register itself under the State Co-operative Societies Act, or the Cooperative <strong><a href=\"http:\/\/legislative.gov.in\/sites\/default\/files\/A1912-02.pdf\">Societies Act, 1912<\/a><\/strong>.<\/li><li><strong>Democratic Administration<\/strong><br>Co-operative societies conduct an Annual General Meeting (AGM) every year wherein the managing committee gets elected that manages the affairs of the co-operative society.<br><\/li><\/ul>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/multi-state-co-operative-society-registration\" style=\"background-color:#01669c\"> Start Multi-State Co-operative Society &#8211; Register Now<\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_Co-operative_Society_in_Rural_Development\"><\/span>Role of Co-operative Society in Rural Development <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Even though agriculture is the primary source of income and\nemployment in rural areas, the parody of the situation is that a majority of\nthe people living in rural districts are poor and hungry. &nbsp;Co-operative society plays a vital role in\nimproving the deprived conditions of rural areas.&nbsp; To understand how co-operative society helps\nin rural development, let\u2019s have a look at the pointers below:<\/p>\n\n\n\n<ul><li>Since 65% of India\u2019s population depends on agriculture, it has become a dominant source of livelihood in rural districts. People earn through the activities of farming, fisheries, forestry, and livestock. The agricultural co-operative society actively supports the men and women agrarian producers to increase employment opportunities for marginalized groups.<\/li><li>The co-operative society helps in enhancing the quality of fertilizers and facilitates better facilities for product marketing, including storage, processing, transport, and availing modern cultivation techniques. <\/li><li>There are multiple co-operative societies furiously working on different aspects to acquire a sustainable economy in rural areas. <\/li><li>The co-operative societies impart several services to poverty-stricken sections, such as access to advanced technologies, proper training in natural resource management, and boost agricultural productivity by increasing the supply of goods.<\/li><li>The purpose of co-operative society does not restrain to provide social benefits but also to give financial security to the people performing agrarians\u2019 activities.&nbsp; So, co-operatives avail finance through agricultural funds and credits to strengthen the economic position of farmers.<\/li><\/ul>\n\n\n\n<div class=\"browse\">\n<p>Browse through our articles on services provided at <a href=\"https:\/\/swaritadvisors.com\">Swarit Advisors<\/a>, and just let us know if we can help you with your NBFC registration or NBFC for Sale or RBI Advisory Services.<\/p>\n<div class=\"browse1\">\n<table class=\"table1\">\n<tbody>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-registration\"><span>NBFC Registration<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/ffmc-license\"><span>FFMC License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/msme-registration\"><span>MSME Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-takeover-agreement\"><span>NBFC Takeover<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/prepaid-wallet-license\"><span>Prepaid Wallet License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/nidhi-company-registration\"><span>Nidhi Company Registration<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/swaritadvisors.com\/nbfc-for-sale\"><span>NBFC For Sale<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/peer-to-peer-lending-license\"><span>P2P Lending License<\/span><\/a><\/td>\n<td><a href=\"https:\/\/swaritadvisors.com\/payment-gateway-license\"><span>Payment Gateway License<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Co-operative_Societies\"><\/span>Types of Co-operative Societies <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>There are different types of co-operative societies, having unique objectives: <\/strong><\/p>\n\n\n\n<ul><li><strong>Consumer Cooperative Society <br> <\/strong>To consider the interest of general consumers, the Consumers Co-operative Society gets build. After the establishment of a consumer society, its members focus on providing reasonable goods to consumers by eliminating the middleman and directly buying the products from manufacturers.<\/li><li><strong>Producer Cooperative Society <\/strong><br>Producers Co-operative Society is mainly formed to protect the interest of small producers. The society achieves its purpose by availing items producer\u2019s needs like equipment, machinery, raw material, etc.<\/li><\/ul>\n\n\n\n<ul><li><strong>Marketing Co-operative Society <\/strong><br>When small producers and manufacturers find difficulty in selling their products individually; it results in the creation of a co-operative marketing Society. The members of such society collect products from both parties and take responsibility for selling their products in the market.<\/li><\/ul>\n\n\n\n<ul><li><strong>Co-operative Credit Society<\/strong><br>As the name suggests, the co-operative credit society works on the purpose of providing financial support. This society accepts deposits from its members and grants them loans at reasonable RoI. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges_faced_by_Co-operative_Society_in_Rural_areas\"><\/span>Challenges faced by Co-operative Society in Rural areas<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s usually not that easy to operate in the rural market because\nof several problems. Let\u2019s have a look at some common issues that co-operative\ndeal with frequently: <\/p>\n\n\n\n<ul><li><strong>Inadequate Funds<\/strong><br>The co-operative society has a limited working capital that is insufficient to perform any course of action. Having a weak owned fund base, the co-operative society borrowing from the central financing agency gets considerably constrained. Therefore, lack of resources and funds stands as a barrier in the way of meeting the credit requirements of indigents. <\/li><\/ul>\n\n\n\n<ul><li><strong>Availability of Agricultural Loans Only<\/strong><br>Even after aggressively participating in the progression of rural areas, co-operative societies fail to offer financial support to every department.&nbsp; The credit services of co-operative society are limited to agricultural operations.&nbsp; Credit societies usually overlook the other financial needs of farmers. The farmers plead to co-operatives to address different credit requirements as well, which leads to a reason for dispute amid them.<\/li><\/ul>\n\n\n\n<ul><li><strong>Political &nbsp;Intrusion <\/strong><br>The biggest problem of co-operative society is that they become the victim of politicians\u2019 tactics. The politicians misuse co-operatives for their advantage and to inflate their vote bank. They clench onto the co-operative society like a leech, which affects the productivity of co-operatives. &nbsp;<\/li><\/ul>\n\n\n\n<ul><li><strong>Mixed Intentions <br>\n<\/strong>It\nhappens in several instances that some members of co-operative society join the\nassociation for personal gains. It not only violates the original goal of\nmutual help but also creates a clash between private interests and the interest\nof the co-operatives that ultimately divert their way to attaining a higher\neconomy in India through rural development. <\/li><\/ul>\n\n\n\n<div class=\"shadow7\"><strong>Conclusion : <\/strong>The rural sector being the major GDP contributor of India has to be developed as a scarcity of resources in rural areas will impact the development of the entire nation. The co-operative societies cover about 95% of villages in India, hence sharing a crucial part in enlarging the overall economy. Despite facing numerous challenges, the co-operative society in rural districts are efficiently working in promoting economic welfare. <\/div>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/co-operative-society-registration\/\" target=\"_blank\" rel=\"noopener noreferrer\">How to Register as a co-operative society<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When individuals having common economic, social, and cultural interests voluntarily come together to form an association, it turns into the establishment of a co-operative society. The central motive of co-operative societies is to serve the needs of underprivileged and rural sections of our community. Co-operative society in rural areas follows the principle of mutual help [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":6493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[544],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/6475"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=6475"}],"version-history":[{"count":26,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/6475\/revisions"}],"predecessor-version":[{"id":10336,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/6475\/revisions\/10336"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/6493"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=6475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=6475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=6475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}