UPMSP Co-operative Studies cheat sheet

Co-operation is a voluntary association of persons with common economic needs, jointly owned and democratically controlled, distributing benefits in proportion to patronage rather than capital.

ICA Statement on Co-operative Identity (1995, Manchester) lists seven principles: voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; co-operation among co-operatives; concern for community.

Three-tier structure typical in India: primary society at village/base level, central/district federation, state federation; apex body at national level.

Rochdale Principles (1844) originals: open membership, one member one vote, cash trading, limited return on capital, religious and political neutrality, distribution of surplus as patronage dividend, education of members.

Distinguishing features versus joint-stock company: service motive over profit motive, one member one vote regardless of shareholding, limited interest on capital, surplus returned on basis of transactions.

Co-operatives are simultaneously business enterprises and social organisations; economic viability is a necessary condition for social objectives to be sustainable.

Types by function: credit, marketing, processing, consumer, housing, labour, dairy, fisheries, weavers, service co-operatives.

Values stated in ICA identity statement: self-help, self-responsibility, democracy, equality, equity and solidarity, plus ethical values of honesty, openness, social responsibility and caring for others.

Rochdale Society of Equitable Pioneers founded 1844 in Lancashire, England, by 28 flannel weavers; regarded as the model of modern consumer co-operation.

Robert Owen and William King are early British co-operative thinkers; the Fenwick Weavers' Society (1761, Scotland) is often cited as an earliest consumer co-operative.

Raiffeisen (rural credit, Germany, 1860s) and Schulze-Delitzsch (urban credit, Germany, 1850s) are the two founding models of co-operative credit.

India: Co-operative Credit Societies Act, 1904, enacted on the recommendation of the Famine Commission (1901) and Sir Frederick Nicholson's study; created primary credit societies and central societies.

Co-operative Societies Act, 1912 extended scope to non-credit societies; co-operation became a provincial subject under the Government of India Act, 1919.

Multi-Unit Co-operative Societies Act, 1942 and later the Multi-State Co-operative Societies Act, 2002 (replacing 1984 Act) govern societies operating in more than one state.

Post-independence: co-operation placed in the Directive Principles (Article 43), State List (Entry 32, List II); National Cooperative Development Corporation (NCDC) set up 1963.

Amul (Anand, Gujarat) under Verghese Kurien and Tribhuvandas Patel became the model of the three-tier dairy co-operative and led to Operation Flood (1970).

Co-operative societies are state subjects; each state has its own Co-operative Societies Act (e.g., Maharashtra 1960, Gujarat 1961, Karnataka 1959, UP 1965).

Constitutional basis: Entry 32 of State List (List II) covers incorporation, regulation and winding up of co-operative societies; Entry 44 of Union List covers incorporation and regulation of multi-state societies.

97th Constitutional Amendment Act, 2011: inserted Article 19(1)(c) right to form co-operatives, Article 43B (DPSP to promote co-operatives), and Part IXB (Articles 243ZH-243ZT) on co-operative societies.

Part IXB prescribes board size (maximum 21 directors), reservation for SC/ST and women, term of five years, and conduct of elections before expiry of term.

Multi-State Co-operative Societies Act, 2002 applies to societies with members in more than one state; registration with the Central Registrar.

A co-operative society is a body corporate with perpetual succession, common seal, power to hold property, sue and be sued, but is not a company under the Companies Act.

Bye-laws govern internal management and must be consistent with the Act and rules; amendments require registration authority approval.

Registrar of Co-operative Societies is the statutory regulator with powers of registration, audit, inquiry, inspection, supersession and winding up.

Three-tier governance: General Body (supreme authority), Board of Directors (elected, policy), and professional/executive management (day-to-day operations).

General Body elects the board, approves annual accounts, surplus distribution and bye-law amendments; one member one vote applies irrespective of shares held.

Board of Directors: elected from members, meets at statutory intervals, appoints the chief executive, and is accountable to the General Body.

Management functions in a co-operative: planning, organising, staffing, directing, coordinating, controlling, with member-relations added as a distinct function.

Statutory/regulatory roles: Registrar (registration, audit, supersession), elected board (governance), and managing director/secretary (executive).

Co-operative management must balance member service with financial viability; surplus is allocated to reserves, education fund and patronage dividend.

Board tenure and elections are governed by the state Act and Part IXB; failure to hold elections can lead to supersession and appointment of an administrator.

Committees commonly used: executive committee, audit/inspection committee, purchase committee, and education/training committee.

Co-operative accounting follows the state Act, rules and bye-laws plus applicable accounting standards; societies often use the double-entry system with a cash book, ledger and member registers.

Sources of funds: share capital, member deposits, borrowings from central/apex banks, government assistance, reserves and accumulated surplus.

Surplus distribution order under most state Acts: statutory reserve fund, co-operative education fund, dividend on share capital (subject to a ceiling), and patronage dividend to members.

Statutory Reserve Fund is compulsory and normally not distributable; many Acts require at least 25% of net profit to be transferred to reserve.

Co-operative Education Fund is a statutory contribution (commonly around 1-5% of net profit depending on state Act) used for member and officer training.

Audit is mandatory and conducted by the Registrar or a panel auditor; types include statutory audit, internal audit, concurrent audit and special/departmental audit.

Audit classification in many states: A (sound), B (satisfactory), C (weak), D (unsatisfactory/moribund), based on financial and compliance parameters.

Key ratios to track: current ratio, debt-equity ratio, net worth, recovery percentage, overdue to demand ratio, cost of funds and spread.

Short-term co-operative credit structure: Primary Agricultural Credit Society (PACS) at base, Central Co-operative Bank (CCB/DCCB) at district, State Co-operative Bank (SCB) at state apex.

Long-term credit structure: Primary Co-operative Agriculture and Rural Development Bank (PCARDB) at base and State Co-operative Agriculture and Rural Development Bank (SCARDB) at apex.

PACS lends mainly for crop production and inputs; its resources come from members' deposits, share capital and borrowing from CCB/SCB.

Co-operative banks are regulated jointly by RBI (banking functions) and the Registrar (management), with NABARD supervising state and district co-operative banks and PACS.

StCBs and DCCBs are covered by the Banking Regulation Act, 1949 (as applicable to co-operative societies); urban co-operative banks are licensed by RBI.

Credit appraisal uses the 3 Cs (character, capacity, collateral) and the 3 Rs (return, repayment capacity, risk-bearing ability).

Kisan Credit Card (KCC) is commonly routed through PACS and co-operative banks for short-term crop loans.

Recovery indicators: demand, collection, balance (DCB) and overdue; high overdue ratios trigger audit downgrade and restrict refinance.

Marketing co-operatives pool members' produce, grade and process it, and sell on behalf of members; surplus is distributed as patronage dividend.

Functions: assembling, grading, standardisation, storage, transportation, processing, financing, market intelligence, risk bearing.

National Agricultural Co-operative Marketing Federation of India (NAFED) is the apex marketing federation; it also handles price support and procurement operations.

Consumer co-operatives buy in bulk and sell to members at fair prices, reducing the margin chain between producer and consumer; the National Co-operative Consumers' Federation (NCCF) is the apex body.

Primary consumer stores operate at the local level, with wholesale stores and federations at district and state level; Kendriya Bhandar is a well-known example.

Marketing cost components: procurement cost, handling and storage, transport, processing, packaging, and distribution margins.

Co-operative marketing reduces distress sale by giving members assured procurement and price information.

Common challenges: weak capital base, inadequate professional management, low member participation and competition from organised retail.

Processing co-operatives convert members' raw produce (sugarcane, milk, paddy, cotton, oilseeds) into finished goods, capturing value addition for members.

Sugar co-operatives are typically organised as factory-level co-operatives owned by cane growers; they pay cane price plus a share of profits.

Dairy co-operatives follow a three-tier Anand pattern: village-level Dairy Co-operative Society (DCS), district milk union, and state milk federation.

Amul (Gujarat Co-operative Milk Marketing Federation) is the apex of the Anand pattern; Operation Flood (1970) built the national dairy co-operative network.

DCS collects milk twice daily, tests fat and SNF, pays on quality basis, and supplies inputs (feed, veterinary care, AI) to members.

The dairy value chain includes collection, chilling, processing (pasteurisation, homogenisation), packaging, and marketing of milk and value-added products.

Agro-processing co-operatives may be registered under state Acts or the Multi-State Act, and often use NCDC or NABARD assistance for plant and machinery.

Key performance measures: capacity utilisation, fat and SNF recovery, cost per litre of milk handled, and member payout per kg fat.

Co-operative education aims to develop members' understanding of co-operative principles, rights, duties and democratic control.

Training targets three groups: members (awareness), board/office bearers (governance), and employees (professional and technical skills).

Extension services include field visits, demonstrations, publications, radio/TV and now digital and mobile messaging to members.

National Co-operative Union of India (NCUI) is the apex body for co-operative education and training in India, with a network of State Co-operative Unions.

National Council for Co-operative Training (NCCT) coordinates co-operative training; the Institute of Co-operative Management (ICM) network delivers professional training.

Statutory funding for education comes from the Co-operative Education Fund contribution under state Acts.

VAMNICOM (Vaikunth Mehta National Institute of Co-operative Management, Pune) is the apex management training institute for co-operatives.

Training needs analysis (TNA), training design, delivery, and evaluation (Kirkpatrick levels) are standard training-cycle components.

National Co-operative Development Corporation (NCDC), 1963: plans and promotes co-operative development, provides financial assistance for processing, storage, marketing and input supply.

NABARD: apex development bank for agriculture and rural development, refinances co-operative banks and supports co-operative development through its funds.

National Co-operative Union of India (NCUI): apex body for education, training and promotion of the co-operative movement.

National Agricultural Co-operative Marketing Federation of India (NAFED): apex marketing federation for agricultural produce.

National Co-operative Consumers' Federation (NCCF): apex body for consumer co-operatives.

Krishak Bharati Co-operative Ltd (KRIBHCO) and Indian Farmers Fertiliser Co-operative (IFFCO): major national fertiliser co-operatives.

State-level support: State Co-operative Banks, State Co-operative Unions, State federations for marketing, dairy, sugar, housing and handloom, and the Registrar of Co-operative Societies.

Ministry of Co-operation (Government of India, created 2021) coordinates co-operative policy; the Ministry of Agriculture and Farmers Welfare also supports co-operative development.

Co-operation is a voluntary association of persons with common economic needs, jointly owned and democratically controlled, distributing benefits in proportion to patronage rather than capital.

ICA Statement on Co-operative Identity (1995, Manchester) lists seven principles: voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; co-operation among co-operatives; concern for community.

Three-tier structure typical in India: primary society at village/base level, central/district federation, state federation; apex body at national level.

Rochdale Principles (1844) originals: open membership, one member one vote, cash trading, limited return on capital, religious and political neutrality, distribution of surplus as patronage dividend, education of members.

Distinguishing features versus joint-stock company: service motive over profit motive, one member one vote regardless of shareholding, limited interest on capital, surplus returned on basis of transactions.

Co-operatives are simultaneously business enterprises and social organisations; economic viability is a necessary condition for social objectives to be sustainable.

Types by function: credit, marketing, processing, consumer, housing, labour, dairy, fisheries, weavers, service co-operatives.

Values stated in ICA identity statement: self-help, self-responsibility, democracy, equality, equity and solidarity, plus ethical values of honesty, openness, social responsibility and caring for others.

Rochdale Society of Equitable Pioneers founded 1844 in Lancashire, England, by 28 flannel weavers; regarded as the model of modern consumer co-operation.

Robert Owen and William King are early British co-operative thinkers; the Fenwick Weavers' Society (1761, Scotland) is often cited as an earliest consumer co-operative.

Raiffeisen (rural credit, Germany, 1860s) and Schulze-Delitzsch (urban credit, Germany, 1850s) are the two founding models of co-operative credit.

India: Co-operative Credit Societies Act, 1904, enacted on the recommendation of the Famine Commission (1901) and Sir Frederick Nicholson's study; created primary credit societies and central societies.

Co-operative Societies Act, 1912 extended scope to non-credit societies; co-operation became a provincial subject under the Government of India Act, 1919.

Multi-Unit Co-operative Societies Act, 1942 and later the Multi-State Co-operative Societies Act, 2002 (replacing 1984 Act) govern societies operating in more than one state.

Post-independence: co-operation placed in the Directive Principles (Article 43), State List (Entry 32, List II); National Cooperative Development Corporation (NCDC) set up 1963.

Amul (Anand, Gujarat) under Verghese Kurien and Tribhuvandas Patel became the model of the three-tier dairy co-operative and led to Operation Flood (1970).

Co-operative societies are state subjects; each state has its own Co-operative Societies Act (e.g., Maharashtra 1960, Gujarat 1961, Karnataka 1959, UP 1965).

Constitutional basis: Entry 32 of State List (List II) covers incorporation, regulation and winding up of co-operative societies; Entry 44 of Union List covers incorporation and regulation of multi-state societies.

97th Constitutional Amendment Act, 2011: inserted Article 19(1)(c) right to form co-operatives, Article 43B (DPSP to promote co-operatives), and Part IXB (Articles 243ZH-243ZT) on co-operative societies.

Part IXB prescribes board size (maximum 21 directors), reservation for SC/ST and women, term of five years, and conduct of elections before expiry of term.

Multi-State Co-operative Societies Act, 2002 applies to societies with members in more than one state; registration with the Central Registrar.

A co-operative society is a body corporate with perpetual succession, common seal, power to hold property, sue and be sued, but is not a company under the Companies Act.

Bye-laws govern internal management and must be consistent with the Act and rules; amendments require registration authority approval.

Registrar of Co-operative Societies is the statutory regulator with powers of registration, audit, inquiry, inspection, supersession and winding up.

Three-tier governance: General Body (supreme authority), Board of Directors (elected, policy), and professional/executive management (day-to-day operations).

General Body elects the board, approves annual accounts, surplus distribution and bye-law amendments; one member one vote applies irrespective of shares held.

Board of Directors: elected from members, meets at statutory intervals, appoints the chief executive, and is accountable to the General Body.

Management functions in a co-operative: planning, organising, staffing, directing, coordinating, controlling, with member-relations added as a distinct function.

Statutory/regulatory roles: Registrar (registration, audit, supersession), elected board (governance), and managing director/secretary (executive).

Co-operative management must balance member service with financial viability; surplus is allocated to reserves, education fund and patronage dividend.

Board tenure and elections are governed by the state Act and Part IXB; failure to hold elections can lead to supersession and appointment of an administrator.

Committees commonly used: executive committee, audit/inspection committee, purchase committee, and education/training committee.

Co-operative accounting follows the state Act, rules and bye-laws plus applicable accounting standards; societies often use the double-entry system with a cash book, ledger and member registers.

Sources of funds: share capital, member deposits, borrowings from central/apex banks, government assistance, reserves and accumulated surplus.

Surplus distribution order under most state Acts: statutory reserve fund, co-operative education fund, dividend on share capital (subject to a ceiling), and patronage dividend to members.

Statutory Reserve Fund is compulsory and normally not distributable; many Acts require at least 25% of net profit to be transferred to reserve.

Co-operative Education Fund is a statutory contribution (commonly around 1-5% of net profit depending on state Act) used for member and officer training.

Audit is mandatory and conducted by the Registrar or a panel auditor; types include statutory audit, internal audit, concurrent audit and special/departmental audit.

Audit classification in many states: A (sound), B (satisfactory), C (weak), D (unsatisfactory/moribund), based on financial and compliance parameters.

Key ratios to track: current ratio, debt-equity ratio, net worth, recovery percentage, overdue to demand ratio, cost of funds and spread.

Short-term co-operative credit structure: Primary Agricultural Credit Society (PACS) at base, Central Co-operative Bank (CCB/DCCB) at district, State Co-operative Bank (SCB) at state apex.

Long-term credit structure: Primary Co-operative Agriculture and Rural Development Bank (PCARDB) at base and State Co-operative Agriculture and Rural Development Bank (SCARDB) at apex.

PACS lends mainly for crop production and inputs; its resources come from members' deposits, share capital and borrowing from CCB/SCB.

Co-operative banks are regulated jointly by RBI (banking functions) and the Registrar (management), with NABARD supervising state and district co-operative banks and PACS.

StCBs and DCCBs are covered by the Banking Regulation Act, 1949 (as applicable to co-operative societies); urban co-operative banks are licensed by RBI.

Credit appraisal uses the 3 Cs (character, capacity, collateral) and the 3 Rs (return, repayment capacity, risk-bearing ability).

Kisan Credit Card (KCC) is commonly routed through PACS and co-operative banks for short-term crop loans.

Recovery indicators: demand, collection, balance (DCB) and overdue; high overdue ratios trigger audit downgrade and restrict refinance.

Marketing co-operatives pool members' produce, grade and process it, and sell on behalf of members; surplus is distributed as patronage dividend.

Functions: assembling, grading, standardisation, storage, transportation, processing, financing, market intelligence, risk bearing.

National Agricultural Co-operative Marketing Federation of India (NAFED) is the apex marketing federation; it also handles price support and procurement operations.

Consumer co-operatives buy in bulk and sell to members at fair prices, reducing the margin chain between producer and consumer; the National Co-operative Consumers' Federation (NCCF) is the apex body.

Primary consumer stores operate at the local level, with wholesale stores and federations at district and state level; Kendriya Bhandar is a well-known example.

Marketing cost components: procurement cost, handling and storage, transport, processing, packaging, and distribution margins.

Co-operative marketing reduces distress sale by giving members assured procurement and price information.

Common challenges: weak capital base, inadequate professional management, low member participation and competition from organised retail.

Processing co-operatives convert members' raw produce (sugarcane, milk, paddy, cotton, oilseeds) into finished goods, capturing value addition for members.

Sugar co-operatives are typically organised as factory-level co-operatives owned by cane growers; they pay cane price plus a share of profits.

Dairy co-operatives follow a three-tier Anand pattern: village-level Dairy Co-operative Society (DCS), district milk union, and state milk federation.

Amul (Gujarat Co-operative Milk Marketing Federation) is the apex of the Anand pattern; Operation Flood (1970) built the national dairy co-operative network.

DCS collects milk twice daily, tests fat and SNF, pays on quality basis, and supplies inputs (feed, veterinary care, AI) to members.

The dairy value chain includes collection, chilling, processing (pasteurisation, homogenisation), packaging, and marketing of milk and value-added products.

Agro-processing co-operatives may be registered under state Acts or the Multi-State Act, and often use NCDC or NABARD assistance for plant and machinery.

Key performance measures: capacity utilisation, fat and SNF recovery, cost per litre of milk handled, and member payout per kg fat.

Co-operative education aims to develop members' understanding of co-operative principles, rights, duties and democratic control.

Training targets three groups: members (awareness), board/office bearers (governance), and employees (professional and technical skills).

Extension services include field visits, demonstrations, publications, radio/TV and now digital and mobile messaging to members.

National Co-operative Union of India (NCUI) is the apex body for co-operative education and training in India, with a network of State Co-operative Unions.

National Council for Co-operative Training (NCCT) coordinates co-operative training; the Institute of Co-operative Management (ICM) network delivers professional training.

Statutory funding for education comes from the Co-operative Education Fund contribution under state Acts.

VAMNICOM (Vaikunth Mehta National Institute of Co-operative Management, Pune) is the apex management training institute for co-operatives.

Training needs analysis (TNA), training design, delivery, and evaluation (Kirkpatrick levels) are standard training-cycle components.

National Co-operative Development Corporation (NCDC), 1963: plans and promotes co-operative development, provides financial assistance for processing, storage, marketing and input supply.

NABARD: apex development bank for agriculture and rural development, refinances co-operative banks and supports co-operative development through its funds.

National Co-operative Union of India (NCUI): apex body for education, training and promotion of the co-operative movement.

National Agricultural Co-operative Marketing Federation of India (NAFED): apex marketing federation for agricultural produce.

National Co-operative Consumers' Federation (NCCF): apex body for consumer co-operatives.

Krishak Bharati Co-operative Ltd (KRIBHCO) and Indian Farmers Fertiliser Co-operative (IFFCO): major national fertiliser co-operatives.

State-level support: State Co-operative Banks, State Co-operative Unions, State federations for marketing, dairy, sugar, housing and handloom, and the Registrar of Co-operative Societies.

Ministry of Co-operation (Government of India, created 2021) coordinates co-operative policy; the Ministry of Agriculture and Farmers Welfare also supports co-operative development.