When numerous persons join together

It’ll give a new strength! Progress is sure

In the task that is performed!

Think of it, O Comrades!

Can a single hand produce

A noise so loud?

If numerous hands join together

Won’t it be achieved, O Comrades?

By Pavendar Bharathidasan

The words of Pavendar Bharathidasan calling the comrades to join together for doing business, reflects the achievements made by the cooperative institutions in the country. Hon’ble Chief Minister while elucidating the principles of cooperation has mentioned that unlike crows which gather together cawing and then disperse, we should come together like clouds bringing prosperity and develop ourselves. We should approach cooperatives to invest in small, small amounts and work hard to increase the earnings and then share the benefit with others. This is the basic principle of cooperatives. Coming together is not for taking away the resources but to give; not to exhaust but to accumulate; not to divide but to share. In India, the cooperative movement started in a small village viz. Tirur in the present Tiruvallur district in 1904 which is the first step in starting of rural credit society there. Over the period the movement was transformed into full fledged movement. Following this in 1904 the first consumer cooperative society was started as Triplicane Urban Cooperative Society. Cooperative movement has spread to diverse economic fields giving birth to different types of cooperative societies and has contributed immensely to the improvement of socio economic status of millions of people especially the poor and downtrodden in the rural areas.

All types of cooperative societies in the State were under the administrative control of the Registrar of Cooperative Societies till 1955. From 1956-1957 onwards due to massive expansion in cooperative movement, certain categories of the societies were transferred to the control of the respective heads of department who are designated as the Functional Registrars of these societies. As on date, there are 15 Functional Registrars besides Registrar of Cooperative Societies. The Registrar of Cooperative Societies remains the authority for interpretation of Cooperative Societies Act and Rules for all types of societies.

The Cooperative Societies presently under the control of Registrar of Cooperative Societies are involved mainly in disbursement of agricultural credit in rural and non-agricultural credit in urban areas, marketing of agricultural produce, sale of consumer goods and provision of fertilisers and other agricultural inputs to farmers. There are other specialized cooperative institutions like Printing Cooperatives, Employees Cooperative Thrift and Credit Societies and Labour Contract Cooperative Societies serving the interests of their members. Of late, the cooperative societies have come under severe threats to their existence because of agricultural loan defaults, market competition and lack of member patronage. At this juncture, the decision of the Government to waive all agricultural loans in the year 2006-07 has given a new lease of life to the entire cooperative sector. While the scheme has broken the shackles of indebtedness among the farming community, it has greatly improved the cash flow within the cooperative credit sector, facilitated greater provision of credit and other inputs for agricultural production and improved their operational viability. Government has so far released Rs.3304.42 crores to cooperative credit institutions over the last two years and will release the balance amount in next 3 years as per its commitments. Such is the success of this scheme that the Government of India have chosen to follow its foot steps and to announce a massive waiver of agricultural loans of Rs.60,000 crores in 2008-09 budget.

Government is fully aware of the critical role played by cooperatives in the development and well being of agriculture and rural sector. Cooperatives provide credit, provide fertilizers and other inputs and also distribute essential commodities under public distribution system. More than that they are accessible to all sections of people. Therefore Government will continue to support these institutions in all possible manner. To that end, Government have signed Memorandum of Understanding with Government of India and National Bank for Agriculture and Rural Development for implementation of the scheme of revival of Short Term Cooperative Credit Structure based on the recommendations of Prof. A. Vaidyanathan Committee. State and District Level Committees have been constituted and special audit of the societies to arrive at the accumulated loss as on 31.3.2004 is in progress. A part of recapitalization assistance as per the scheme is expected in 2008-09 and this will infuse substantial liquidity back into the system. Similarly, Government will also take action for reviving Long Term Cooperative Credit Structure, {Tamil Nadu Cooperative State Agriculture and Rural Development Bank (TNCSARDB) and Primary Cooperative Agriculture and Rural Development Bank (PCARDB)} as and when a similar scheme is announced by Government of India. Government will also take steps to sign Memorandum of Understanding with Reserve Bank of India for improving the status of Urban Cooperative Banks. These efforts will enable the cooperative institutions to work more effectively.

The Cooperative institutions coming under the purview of this department can be broadly classified as follows:

(i) Cooperative Credit Institutions

(ii) Cooperatives for marketing agricultural produce

(iii) Consumer Cooperatives.

(iv) Cooperatives engaged in cooperative education, training and research.

(v) Special types of Cooperative Societies.

The current activities and future prospects of the above types of cooperative societies are elaborately discussed in the following chapters.