Cooperative Farming is a group of farmers who practice collective farming while still retaining individual ownership of their land. They distribute profits based on the amount of land each member owns.
The cooperative movement in India began during British rule and gained momentum after independence through reforms and favourable policies.
EVOLUTION:
Ideology: Gandhian, socialist ideology believed that cooperative farming would improve the status of Indian agriculture.
Land reforms: Land reforms targeted towards the abolition of Zamindari, removal of middlemen tenancy reforms etc were aimed at increasing cooperation between farmers to increase agriculture production.
Evolution of FPOs: Farmers Producer Organisations are complementary to the progress of cooperative farming. FPOs are aggregations of small, marginal and landless farmers aimed at increasing the economic strength of Famers. Over 4,000 FPOs are supported by NABARD and SFAC.
FPC(Farmer Producer Company): These are registered under the Companies Act. These are a combination of the cooperative sector and companies act.
State subject: Constitution has included Cooperatives as a state subject giving ultimate rights to states to develop them depending upon local conditions.
Ministry of Cooperation: Recently the Government of India constituted an independent Union Ministry of Cooperation (MoC). The Ministry would work towards a cooperative-based economy by providing an ‘administrative, legal and policy framework’ and ‘Ease-of-doing-business for cooperatives.’
SIGNIFICANCE:
Institutionalising Principle of Mutual Help: According to the planning commission, cooperatives represent the institutionalization of the principle and mutual aid. It has the merit of combining freedom and opportunity for the small man with the benefit of large-scale management and organisation.
Economies of scale: In India, 80% of farmers are small and marginal. Land pooling enables the mechanisation of farming and precision irrigation thus improving the overall productivity of land. This increases the per capita
the output of the members.
Combination of inputs: It provides a platform where farmers can come together and share efficient and scientific methodologies thus modern practices can be implemented. Such complementary exchange of ideas, capital, labour, and livestock would help to reap the maximum output from farming.
Access to credit: The availability of credit to cooperatives is easy due to the combined creditworthiness of the members.
Doubling farmer’s Income: Effective organisation of cooperatives would help to realise the doubling of small farmers’ income.
CHALLENGES IN RESPECT OF CO-OPERATIVE FARMING IN INDIA
Co-operative farming failed to make a frontal attack on the prevailing inequality in the economic structure as the traditional status distinction of land owners, landless labourers and sharecroppers are still being maintained.
The mechanisation of agriculture through co-operative farming will squeeze the scope of employment and is likely to make workers redundant in rural areas.
While cooperative farming is one way to increase agricultural productivity, it's important to consider other effective alternatives. Utilizing a high-yielding variety of seeds, fertilizers, and advanced implements can significantly enhance the productivity of agriculture.
It's crucial that we explore all options to ensure that we are maximizing our potential to produce sustainable and abundant food sources.
WAY FORWARD
The success of the cooperative movement has been restricted to a few states like Maharashtra and Gujarat. At all Indian levels, cooperatives have failed to put a positive impact. Due to political control and corruption in the cooperative institutions.
FPC:
- It is a hybrid between cooperatives and private limited companies registered under the companies act. It would plug the structural vulnerabilities of the agriculture sector.
- It organises farmers into a collective group to improve their bargaining strength.
- They are owned and governed by shareholder farmers ad administered by professional managers.
- It combines good principles of cooperatives and efficient practices of companies.
- FPCs would increase farmer’s control over the company under statutory provisions thus removing flaws of cooperative organisation.
- Success story of the largest FPC — Sahyadri farms can be replicated throughout the country.
Dedicated ministry and the success of the FPC model can rejuvenate the agriculture sector and can play a vital role in realising the goal of doubling the farmer’s income.
