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Things to avoid for making cooperatives successful in India

by Mukesh Doot 4 year(s) ago

There had been several studies why cooperatives fail in India. Several reasons came up. Some reason were on part of the cooperatives themselves, for others, the government policies were found to be responsible. Some of the main reasons of failure of cooperative societies are as follow –

  • When memberships starts to grow, the cooperatives fail to make developing profits
  • The inactivity on part of members in the management of cooperatives

  • Mounting overdue in cooperative credit institution
  • Sometimes over-dependence on the government aids

  • Lack of internal resources
  • Lack of professionalism

  • Bureaucratic control and interference in the management
  • Political interference and over-politisation

  • Interference by vested interests
  • Non- percolation of benefits to a common member

  • Ignorance of the persons for whom such cooperatives were basically formed

Experts feel that stringent steps should be taken to deal with these problems as cooperatives have been considered vital for the overall development of India, especially in rural sector. The steps should be backed up with right kinds of laws and government policies.

Experts also believe that management of small cooperatives should be given proper training by the government authorities for smooth functioning of the organisations. Besides, political and bureaucratic formalities and interference should be removed for the overall development of co-ops.

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