Principles and objectives of co-

operation, co-operative movement

in fisheries in India

Dr. Rajinder Kaur

A.P. (Fisheries)
 Objectives of cooperatives
• Objectives of cooperatives
• To generate economic objectives among members
through provision of credit , farm supplies, marketing
etc.,
• To mobilize funds and savings among members.
•To provide consumer goods to members at reasonable
rates.
• To provide services to members according to their
needs, such as housing, transport, insurance etc.
• To promote self-help, self-reliance among people.
• To educate and train members and the public in
democracy, economic and social development.
 Principles of cooperatives
• International Co-operative Alliance (ICA) Reformulated
Principles in 1995:
• ICA as its centennial congress held in September 1995
reformulated the principles seven which is followed by ICA
today, the first four set out the working methods of the Co-
operatives, next two state what is essential for continued
progress of the movement and last one legitimizes its existence
in broader social context.
• • 1st principle: Voluntary and Open Membership,
• • 2nd principle: Democratic Member Control,
• • 3rd principle: Member Economic Participation,
• • 4th principle: Autonomy and Independence,
• • 5th principle: Education, Training and Information,
• • 6th principle: Cooperation among Cooperatives,
• • 7th principle: Concern for the Community.
 Democratic Member Control
• The principle stresses that members ultimately control
their cooperatives. It also emphasizes that they do so in a
democratic manner. It also affirms the right of members
to be actively involved in setting policies and making key
decisions.
• This principle also reminds that elected representatives
belong to members and all elected officials are
accountable throughout their mandate, for their actions
to the membership.
• The primary cooperatives are governed on the basis of
one-member one-vote, irrespective of number of shares
held by the members. This feature of cooperatives
distinguishes itself from other forms of business
organizations.
 Members' Economic Participation
• Members contribute equitably to and democratically
control the capital of their co-operative.
• At least part of that capital is usually the common
property of the co-operative. Members usually receive
limited compensation, if any, on capital subscribed as a
condition of membership.
• Members allocate surpluses for any or all of the
following purposes; developing their co-operative,
possibly by setting up reserves part of which at least
would be invisible; benefiting members in preparation
to that transactions with the co-operatives; and
supporting other activities approved by the
membership.
 Autonomy and Independence
• This is a new principle and in a way underscores a
part of the definition of cooperatives explained
earlier.
• The principle has been included to clearly emphasize
the distinctive character of cooperatives vis-à-vis the
government. In referring to other organizations the
principle acknowledges the fact that cooperatives
are entering in to joint projects with private sector
firms.
• The principle stresses, however, how important it is
that cooperatives retain their freedom ultimately to
control their own destiny whenever they enter such
agreements.
 Cooperative Education, Training and
Information
• This is an old principle; it underscores cooperative movement’s
long-standing and distinguished commitment to educating the
members as well as general public about cooperative
movement.
• It means engaging the minds of the members, elected leaders,
managers and employees to comprehend fully the complexity
and richness of cooperative thought and action.
• Training means making sure that all those who are associated
with the cooperatives have the skills they require in order to
carry out their responsibilities effectively.
• The principle also stresses that cooperatives have the
responsibility to inform young people and opinion leaders
about the nature and benefits of cooperation.
 Co-operation among Co-operatives
• This is also an old principle. If cooperatives are to achieve
their full potential, they can do so only through practical
and rigorous collaboration among cooperatives at various
levels.
• Cooperatives around the world must recognize more
frequently the possibilities of more joint ventures. They
must enter in to them in a practical manner, carefully
protecting the interest of members.
• Cooperatives must also recognize, even more than the
past, the necessity of strengthening their support
organizations and activities.
• One good example of cooperation among cooperatives is
the doing business with cooperatives of higher level. That
is, cooperative societies can have accounts with higher
cooperative banks for their transactions.
 Concern for Community

• This is also a new principle. The principle

emphasizes that cooperatives have a special
responsibility to ensure the development of
their communities-economically, socially and
culturally.
• They have a responsibility to work steadily for
the environmental protection of those
communities.
 Need for co-operation
• The need for cooperation arise for more than one reason, these may be
economic, social or educational. The benefits one derives from
cooperation explain why people like to work together.

• The general benefits have been told by David Morse, the former Director
General of International Labour Organization (I.L.O.) thus:

• “Cooperatives have helped rationalize distribution patterns, increase

purchasing power, promote consumer protections, and narrow the
housing gap. They have contributed to the modernization of small scale
production in agriculture, fisheries, handicrafts and industry. They have
made improved quality and greater volume of production and have led to
more efficient marketing of increased output. They have stimulated
productive capital formulation among large number of individuals. In a
wider sense, cooperative growth has thus become an effective stimulant
to economic growth.”
 Benefits
• Economic benefits:
The cooperatives try to secure for their members various types of
services at low costs. According to Casselman these benefits may be
enumerated thus:
• The substitution of profit incentive in business by that of services
to humanity or production for consumption;
• A more equitable distribution of wealth
• The break up of monopolistic tendencies and trusts which
operate at the expense of the consumer
• The increase in the purchasing power and real wages of an
individual by giving him more and better goods for his money.
• Reduction in cost of distribution system by elimination of
unnecessary middlemen, elimination of fraudulent practices,
eradication of such practices as misleading advertisement
and high pressure salesmanship, removal of useless
duplication of services.
• The rejection of accounting inaccuracies by encouraging
frankness in business
• The more accurate correlation of demand and supply as a
result of the greater certainty and regularity of the
consumer market.
• Stabilization of employment which will result from the
regularity of demand and the absence of speculation
• The fair treatment of all labour and general improvement in
employer-employee relationship .
 Weakness of the cooperative movement
• It has been observed that cooperation in India has not
been a living, dynamic force contributing to the moral,
intellectual and economic improvement of the rural
masses. It has not become with the cultivators a “way of
life”, but has remained a Government agency from which
they can obtain cheap credit.
• The very slow progress of cooperative societies for
purpose other than credit(e.g., societies for consolidation
of holdings, joint cultivation of land, for purchase and sale
of products) proves that the real message of
cooperation(i.e, “ self help and mutual association of
common economic good”) has not been grasped by the
cultivators.
 Evolution of co-operative movement in India

 The cooperative movement saw the light of the day in

1844 in England.
 In India, the idea of cooperative movement was first
conceived by the then Madras Government in 1892.
 Sir Frederick was appointed to find ways and means
for the constitution of agricultural banks in the state.
 In 1945, the Saroya Committee and in 1954 Gorawala
Committee suggested changes for improvement in the
cooperative system for the welfare of the farmers.