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Cooperatives: The Economic Backbone of India

 Jul 07, 2025   Admin

The Union Cooperation Minister laid the foundation stone for India’s first national-level cooperative university, ‘Tribhuvan Sahkari University’ (TSU), in Anand, Gujarat.

What are Cooperatives?

  • A cooperative (or co-op) is an organization or business that is owned and operated by a group of individuals who share a common interest, goal, or need. 
  • These individualsknown as members, participate in the cooperative’s activities and decision-making process, typically on a one-member, one-vote basis, regardless of the amount of capital or resources each member contributes. 
  • The main purpose of a cooperative is to meet the economic, social, or cultural needs of its members, rather than to maximize profits for external shareholders.
  • Types of Cooperatives in India:

    Agricultural Cooperatives:

  • Dairy Cooperatives: Focus on the collective production, processing, and marketing of dairy products (e.g., Amul).
  • Farmers’ Cooperatives: Provide services like access to seeds, fertilizers, and agricultural equipment, and help with marketing and processing crops.
  • Fishermen Cooperatives: Support fishermen in managing resources and marketing their catch collectively.
  • Consumer Cooperatives: These cooperatives are formed to provide goods and services to members at reasonable prices, reducing reliance on middlemen. Examples include consumer stores and fair-price shops.
  • Worker Cooperatives: In these cooperatives, workers own and manage the business, sharing profits and decision-making. Examples include small-scale manufacturing cooperatives or artisan co-ops.
  • Credit Cooperatives: Cooperative Banks and Credit Societies offer financial services, such as savings accounts, loans, and credit, to members, particularly in rural and underserved areas.
  • Housing Cooperatives: These cooperatives help members collectively build or manage housing projects, providing affordable living spaces, especially in urban areas.
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