Dr balraj Bishnoi: SUCCESS AND CHALLENGES FOR COOPERATIVES

Dr balraj Bishnoi: SUCCESS AND CHALLENGES FOR COOPERATIVES: SUCCESS AND CHALLENGES FOR COOPERATIVES         …………3 Dr Balraj Vishnoi Cooperative Movement emerged as one of the ...

Dr balraj Bishnoi: COOPERATIVE MOVEMENT AND DAIRY DEVELOPMENT ……4

Dr balraj Bishnoi: COOPERATIVE MOVEMENT AND DAIRY DEVELOPMENT ……4: COOPERATIVE MOVEMENT AND DAIRY DEVELOPMENT …………….4 DR. Balraj Vishnoi The success of the Gujarat Cooperative Milk Mar...

Dr balraj Bishnoi: COOPERATIVE MOVEMENT AND IMPACT OF LIBERALIZATION ...

Dr balraj Bishnoi: COOPERATIVE MOVEMENT AND IMPACT OF LIBERALIZATION ...: COOPERATIVE MOVEMENT AND IMPACT OF LIBERALIZATION ON DAIRY DEVELOPMENT DR. Balraj Vishnoi Ministry of agriculture data shows tha...

COOPERATIVE MOVEMENT AND IMPACT OF LIBERALIZATION ON DAIRY DEVELOPMENT........5

COOPERATIVE MOVEMENT AND IMPACT OF LIBERALIZATION ON DAIRY DEVELOPMENT

DR. Balraj Vishnoi

Ministry of agriculture data shows that except for Gujarat and Karnataka where Dr Kurien made the cooperative movement strong and vibrant, growth in milk production by milk producing  cooperative societies was only 9.3% during 2005-2009; available data dhows that growth in milk production by cooperative sector outside Gujarat and Karnataka was less than the national average of 44%. Due to these two states the cooperative sector put benchmark of an average growth in milk production to 20.6%. Thus highest contribution to the growth in milk production for the rest of India was private sector but not cooperative sector thus liberalization policy  hammers cooperative movement’s basic objective of self reliant rural India.
Liberalisation policy of National Dairy Development Board is a blow for Cooperative Movement in India.                                                                                                                                                                                                                                                                                                                                                 Private sector to grow at higher rate thus weakens  the cooperative movement was the manner in which NDDB allowed Mother Dairy to purchase milk from the private sector  and not the cooperative sector is a drawback of Cooperative Movement in India. Thus NDDB failed to fulfill the mandate of Parliament .Thus  destruction of the vision glorified by father of milk revolution Dr Verghese Kurien and the founder of ‘Gujarat Cooperative Milk Marketing Federation’ (GCMMF), success of the Amul brand is world known.
 Dr. Kurien continuously promoted the cooperatives in India with role model from Gujarat. Late prime minister Lal Bahadur Shastri was so much admirer of Kurien’s vision that he decided the his approach to guide the national dairy development policy of country and thus on shshtrji’s initiative the NDDB was set up in 1965. . The basic objective of the NDDB was to replicate the Amul model and its first chairman was Dr Kurien to head the institution. Dr. Kurien  was succeeded  by Amrita Patel in 1998.
Amrita Patel converted divisions of NDDB into wholly owned subsidiaries, thus spinning them away from direct parliamentary supervision. It also enabled key directors of NDDB to get perquisites from a host of corporate entities and NDDB is the sole shareholder of all of these companies.
 Kurien’s commitment to transparency: salute
Today Chairman NDDB and tried to hide all details mainly  financial details from the public for a company formed of public funds mainly. Strangely balance sheets of the subsidiaries are not available for scrutiny of the public  for eg. Mother Dairy and this was critisized by the Central Information Commission for not disclosing information despite of being a recipient of public funds.  After media like DNA news was repeatedly behind NDDB for 4 years and written a series of articles focused on NDDB; thereafter it decided to put 3 annual reports on NDDB website. But reports not available for glorious 40 odd years dedicated by Kurien for public consumption. Thus a blow for transparency and openness.
Specialization in Dairy Cooperatives: a challange
Today Dairy Industry looks under  sad mood (according to media report) after T Nanda Kumar as Patel’s successor in NDDB due to :                                                                                                                     1) T N Kumar is a retired IAS officer & the NDDB chairman’s post is an executive post drawing a decent remuneration.
2) Kumar is very less expertise of the milk industry. According to Cooperative sources indication Sh. Kurien chose the headquarter of NDDB in Anand was meaningfull as Gujarat ensured that population having god knowledge of matters related to milk and cooperative societies.
3) The NDDB Act being needful of the fact that the chairman should be “professionally qualified in...dairying, animal husbandry, rural economics, rural development, business administration or banking”  on the other hand sh Kumar’s last posting was as a member of the National Disaster Management Authority.
4)  NDDB being guide for formulation of the national dairy development policy of country and  the cooperatives like GCMMF, RCDF operate as a true representative of farmers and are run by professionally qualified managers. In most other states, the cooperatives are managed by civil servants, function more as government bodies and are weak representatives of farmers.
5) Cooperative Model for dairy development and NDDB have bureaucratic problems as its motive was introduced for transforming cooperatives to work as expertise with efficiency and as prominent representatives of animal farmers.
6) With the liberalization of cooperatives in dairy sector ; there emrege Challenges by  private sector dairies with prominent share in the dairy industry in India except Gujarat & Karnataka.

COOPERATIVE MOVEMENT AND DAIRY DEVELOPMENT ……4

COOPERATIVE MOVEMENT AND DAIRY DEVELOPMENT …………….4

DR. Balraj Vishnoi

The success of the Gujarat Cooperative Milk Marketing Federation (GCMMF), known for its Amul model of cooperative.  There is a perception that cooperative organizations generally have failed in other parts of India. Fact to be taken care of that the cooperatives in other states like Rajasthan have been organized differently than  Gujarat milk union cooperatives / GCMMF which operate as real representatives for farmers and based on professionalism. On the other hand in most States of India cooperatives are run by civil servants, function as government department. Thus results in weak representatives of farmers and rural India in terms of their economical development.

The following characterizes dairy farming in India and its relevance to inclusive growth:

1Small as well as marginal farmers occupy 36% (approx.) of land and nearly 58% (approx.) of buffaloes , cow, goat and sheep.

 2 About 72 % of rural inhabitant household having 3 to 4 cattle.

3 Today dairy farming play important role for rural needs and development of animal farmers. Cattle Feed’s obtained as residual from crops and cow dung is plays important role as manure and eco-friendly biogenetic fertilizer.                                

4 Dairy farming provides regular source of income with high influence on minimizing risks to income. In areas with well developed dairy and animal farmers income have less incidence of farmer’s suicidal tendency.

Central Government Schemes and Initiatives in States of India: Focus on Rajasthan.

1  Rastriya Krishi Vikas Yojana (RKVY):

Rastriya Krishi Vikas Yojana (RKVY) is a central scheme with 100% grant from department of Agriculture, Ministry of Agriculture, Government of India; implemented in State of Rajasthan. Project with 100% grant being sanctioned to Strengthen  dairy infrastructure in Rajasthan for the year 2008-09 to 2012 -13 needfully to be extend upto 2019 vision in the report card by GOI as it’s a successful innovation for animal farmers of the country as a whole.

In Rajasthan  following districts are covered in RKVY are Ajmer, Alwar, Bikaner, Bharatpur, Bundi, Kota, Bhilwara, Chittorgarh, Churu, Dholpur,Sriganganagar, Jodhpur, Nagour, Pali, Jaipur, Dausa, Jaisalmer, Jalore, Tonk, Udaipur, Jhalawar, Baran, ,Sirohi, Hanumangarh,Sikar, Sawaimadhopur, Karouli and Rajsamand.

Scheme involve sanctioned of money in lacs as mentioned in brackets for the installation of  Bulk Milk Coolers ( Rs2000.00 lac ),                                                                      Solar System for eight Chilling centers (Rs 120.00 lac), Establishment of Cold Chain     ( Rs 442 lacs),Milk Cold Store Deep Freeze and Refrigerated vans.                              Strengthening of Infrastructure (Rs.1100.00.lacs)includes:                                                                                                                  a)Steam-Generation-System for 4 plants,                                                               b)Expansion of Alwar Dairy upto 2.5 LLPD,                                                          c)Strengthening of IT system/ MIS /ERP Software/hardworking and networking of units serware (hardware & software),                                                                                              d) Establishment of new infrastructure in Bharatpur and karouli

Membrane technology  for manufacture of protein(whey) and cheese (whey),establishmentof of milk processing unit at Jaisalmer, dairy plant at Nagour,,establishment of milk powder plant at Jaipur and setting up a new dairy plant for Jaipur city,establishment of cattle feed plant at Bhilwara, Installation of quality Control Equipment and establishment of cattle feed Plant at Pali with the Grand Total of Rs29344.99 lacs sanctioned in 2013 whereas for 2013-14 amount need to be increase for following reasons:

   a)    Increasingly more consumers.

   b)    Higher incomes and greater interest in nutrition.

   c)    Consumption of processed and packaged dairy products is increasing in urban areas.

   d)    The increasing competition from the private sector several national and international brands have entered the market and expanded consumers’ expectation of quality – although only among a small proportion of the population.

                                               …………….  To be continued 5

 

SUCCESS AND CHALLENGES FOR COOPERATIVES

SUCCESS AND CHALLENGES FOR COOPERATIVES        …………3

Dr Balraj Vishnoi

Cooperative Movement emerged as one of the largest in India. Cooperative Societies is a State subject thus every state enacted its own Cooperative Societies Acts. Main challenge is in terms of their progress for rural India in qualitative terms has not been up to mark in Rajasthan due to various reasons as intervention in functioning with less autonomy despite constitutional amendment. The Government took different remedial  measures to promote cooperatives which include national policy for cooperative society, Multi-State Cooperative Societies Act, assistance to cooperative education
(ACE) and training Needs evaluation and reforms, assistance for Integreted cooperative development Projects (ICDP) in selected districts of Rajasthan and other states in through NCDC (GOI) for development of cooperatives grassroot level, revival need and  implementation of recommendations of  Vaidyanathan Committee report and other measures for success of cooperatives in states with amendment in state acts , which is not  encouraging due to lack of innovation and lacks inclusion of best practices from states like Maharastra, Karnataka and Gujarat. Need to strictly follow provisions for autonomous operation of cooperatives with democratic protection and voluntary memership. The right to form cooperative societies made a fundamental right by parliament with vitality of multi-State cooperative societies (MSCS) by the State Legislature and to ensure the autonomy with democratism in cooperatives, accountability of management and board of director to be ensured.

As the Constitutional status and Autonomy to the cooperatives provided in the U.N. Year of cooperative 2012 by constitutional amendment , 2011 in India. Need to signify  cooperatives’ economic institutional need from the farmers perspective to eradicate indebtedness and poverty in rural India and taken as challenge for the cooperative societies to get rid of weak and inactive societies due to politicization of cooperative leadership as the Boards of a majority of cooperative Bodies are dominated by politicians.  As per the second Administrative Reforms Commission (ARC) was critical of the needless influence of the State with less autonomy and politicization at all levels  impaired the proper functioning of cooperative. Thus besides giving constitutional status to cooperative societies ;positive and active rescue operation as a medicinal remedy is need today in 2014 after 2 years of autonomy status to these societies with “a step in the direction to make the cooperative institutions voluntary, democratic, professional, member-driven and member-centric enterprises and making amendment in Constitution in Article 19, 19(1)(h) i.e.“ to form and run cooperatives based on principles of voluntary and open membership, democratic member control, member economic participation, and autonomous functioning free from State control .”

 There should be no prejudice by the Central Government for cooperative sector but needfully substantial economic structural functional provision needful as compulsion. Necessarily the management of cooperative society to be regulated ensuring member centric nature of cooperatives. Instances like Campa housing society should be avoided it’s a disturbing case due to carelessness of BMC and cooperative society as in Mumbai  every building built is necessarily a cooperative , here 102 families getting homeless due to malpractices of housing cooperatives and BMC as well as unawareness of innocent families living there since long back.

Significant role of rural farmer to be supported by the democratic process of Panchayats  grassroots level and  a democratic participation of cooperative autonomy to be secured in independent system for socio-economic upliftment in the state voluntarily nature to establish cooperatives rather than involvement of bureaucracy. A positive sign that Constitution Amendment gives a “democratically governed, efficiently managed, financially sustainable, self-reliant entities that can provide a wider range of financial services to the rural poor” as stressed  earlier by World Bank 2007 report pg. 1-3. Compulsory election all over India in primary cooperative , district cooperative , farmers' cooperative, employees' cooperative, bunker sangh, housing cooperative societies etc with a reservation for the Scheduled Castes, the Scheduled Tribes, the OBCs, women and people with disabilities.

The Central Government should restrain from interference in the State Governments to make legislation concerned with cooperatives. The cooperative societies lends soft loans to farmers at the time of harvest at a minimal rate of interest.

The cooperative movement playing  great role towards economic development and is an substitute for capitalist economy and socialist based ideology of economy. Successful illustration is of economy in Maharashtra eg. sugar industry and milk sector etc. cooperative societies have playing influencing role for rural development and to be revived successfully in all sectors. Strengthening cooperative movement can be catalyzer for Industrialization rural India. Role of investment is significant for the cooperative societies and will assist in the welfare of farmers, weaker sections and marginal groups of people.                                            …………………to be continue