OF CO-OPERATIVE SECTOR IN KERALA
British East India Company miserably exploited India by
absorbing all her resources during pre-independent period.
After independence earnest steps were taken to make her
healthy in every respects. It was generally admitted by
the Architects of India that co-operatives can act as an
effective media for the socio-economic reconstruction of
the country. Hence attempts were made by the Planning Commission
to develop the co-operative movement as a self reliant one
by augmenting the resources through mobilisation of savings
in urban and rural areas, promoting integrated rural development
by strengthening the links between credit, supply of inputs,
processing, marketing and distribution of essential commodities
and developing of weaker sections of the community.
growth of Co-operative movement in Kerala was insignificant
during pre-independent era. Only 1669 co-operatives were
functioning in the state with a total working capital of
Rs.92.21 lakhs. The membership and paid up share capital
were Rs.2.05 and Rs. 31.79 lakhs respectively. Credit and
non-credit operations during the period were also nominal.
Loan disbursed during the year 1946 was Rs.10.62 lakhs only.
Performance in the area of Consumer, Marketing etc. were
also not remarkable when compared to the exquisite achievements
during the succeeding years. A comparative statement of
performance of the sector during pre and post-Independent
era is shown in Annexure-I.
the formation of State of Kerala, Co-operatives under the
area were administered by the Travancore Co-operative Societies
Act V of 1112(M.E), Cochin Co-operative Societies Act XXVI
of 1113(M.E) and Madras Co-operative Societies Act 1932.
After the integration of Travancore and Cochin, Travancore-Cochin
Co-operative Societies Act 1951 came into force with effect
from 1.9.1952. After the formation of Kerala State, the
Kerala Co-operative Societies Act of 1969 came into force
with effect from15.5.1969 in order to enact a uniform law
on co-operation applicable throughout the State. Consequent
on the introduction of Kerala Co-operative Societies Act
1969, Societies with unlimited liability ceased to exist
and societies with limited liability came into existence.
Thereafter Government of Kerala passed the Kerala Co-operative
(Amendment) Act 1999 which came into force with effect from
1.1.2000. Providing of membership to local body institutions,
Deposit guarantee scheme in Primary Agricultural Credit
Societies, Consortium Lending Scheme, Co-operative Development
and Welfare Fund, Independent Election Commission, Separate
Audit Wing and Vigilance Wing, and Co-operative Examination
Board are the new provisions made in the Amendment Act.