Maharashtra Board Class 11 Cooperation Chapter 6 Service Co operative Society PDF Download

Service Co-operative Society

6.1 Introduction

To fulfill the economic and social needs of farmers and to increase agricultural productivity various services were provided by organizations. These organizations are called Service co-operative societies. Service co-operative societies are also called multi purpose co-operative societies, agricultural service co-operative societies or primary service co-operative societies. These societies not only provide loan to its members but also provides various services.

In India service co-operative societies were started since the year 1958. The development of service co-operative society was from primary service co-operative society to multipurpose co-operative to large size tribal multipurpose society to service co-operative society.

In India Primary credit co-operative societies was started since 1904. These societies were started with an objective to provide loan to its members. These societies were unable to provide other services to its members. Therefore, it was suggested that credit co-operative societies should be modified into multipurpose co-operative societies. In the year 1947 Primary credit co-operative society were restructured into multipurpose co-operative society.

All India rural credit development committee gave a report in 1954 that there were various drawbacks in the functions of multipurpose co-operative societies. Committee suggested that establishing big societies were necessary. These societies have to work for more villages rather than one village. Therefore, government have given encouragement to establish these types of big societies. But M. L. Darling was of an opinion that small societies are beneficial than big societies. In 1958 National development committee gave report which states that establishment of small societies must be given importance. Vaikuntalal Mehta also gave importance to form small societies at village level. Therefore, Service co-operative societies has vital importance in the development of rural areas.

In this topic we are going to study about Service co-operative society.

Teacher's Note

Service co-operative societies help farmers in villages. For example, a farmer can get seeds, fertilizers, and loans from the same society.

Exam Trick

Remember: Service Co-operative = Services + Loans + Seeds together. It is like a one-stop shop for farmers in the village.

Points to Remember

Service co-operative societies started in India in 1958.

These societies help farmers with loans and agricultural products.

They work at village level.

They follow cooperative principles.

6.2 Meaning and Definition

The farmers of rural areas have various needs relating to farming such as supply of finance to agriculture, seeds, fertilizers, pesticides along with these needs they have some basic needs like grocery, clothes, sugar, wheat, rice etc. To fulfill these requirements the society established by the members of rural area on co-operative principles such societies are known as Service Co-operative Societies.

Definition

1) "The society which is formed to fulfill the common objectives and to increase the agricultural productivity by mutual help and co-operation such societies are known as service co-operative society". - B. Mukherjee.

2) "The Society which is voluntarily formed to fulfill the common objectives and to increase the agricultural productivity, agricultural ancillary goods and services such societies are known as Service Co-operative Society"

3) "The society which is formed to meet the common economic need and to increase the agricultural productivity by the people voluntarily for mutual help and co-ordination such societies are called as Service Co-operative Societies". - Ministry of social development

From above definition it is clear that this society reaches up to every farmer and the society directly deals with the people. This society provides various services to increase agricultural productivity.

Teacher's Note

A service co-operative society is like a community bank and shop combined. It gives money and things that farmers need.

Exam Trick

Remember: Service Co-operative = helps farmers + gives loans + sells seeds and fertilizers. Think of it as a farmer's friend.

Points to Remember

Farmers form the society together.

The society gives loans to farmers.

It provides seeds and fertilizers.

It gives necessary goods at low prices.

6.3 Features/Characteristics Of Service Co-operative Society

1. Membership: The membership is open and voluntary to all the persons residing in the area of operation of co-operative society. One Service co-operative society is formed for a village having population of about 1000 person. Any person from that village or residing in the area can become a member of society. Farmer/artisan or small businessmen can become a member of the society.

2. Liability: The liability of the member is limited. The liability is limited up to the face value of shares held by the member. The personal or private property is not charged to compensate the losses of the society. The societies are formed on the principle of limited liability.

3. Face Value Of Share: The face value of share is nominal in Service co-operative society. Generally, the face value of the share is Rs 10. The price of the share is nominal so that the farmers, artisan and small businessmen can become the member of the Service cooperative society.

4. Democratic Management: In Service co-operative society the board of directors/managing committee/Administrative Committee is responsible for the management. The Managing Committee is elected by the members. For administrative work secretary/group secretary is appointed. The management of co-operative society is conducted on democratic principle. General body is the supreme authority. All decisions are taken in the general meeting with the consent of all the members in democratic manner.

5. Formation Of Society: Service Co-operative societies are formed as per the provision of co-operative societies act. Earlier single purpose societies or large societies were restructured and service co-operative societies were established. If the population of one village is less than the society can be formed for two or three villages. Sometimes independently service co-operative societies are formed.

6. Capital Raising: Service co-operative societies raise their capital through following sources such as issue of shares, accepting deposits, membership fees, reserve fund, donation and subsidies/grants from state government. In addition to this the capital is also collected from state government, commercial banks and financial institution working in rural areas.

7. Supply Of Essential Commodities: Service co-operative societies provides essential commodities to the members. They provide food grains, soap and other essential commodities at reasonable rates. As well as in the modern era these societies opened various general stores functioning in rural areas. The goods are provided at reasonable rates which increases the savings and standard of living of the members.

8. Guidance And Suggestions: Service co-operative societies provides guidance as how to increase the agricultural productivity and allied businesses. They provide information and guidance for use of modern agricultural equipment's, seeds, fertilizers and pesticides and also provide guidance for repair and maintenance of equipment's.

9. To Provide Agricultural Services: Service co-operative societies provide services relating to agricultural activities. For e.g.- supply of seeds, fertilizers, pesticides, animal food etc. They also provide various services like warehouse facilities, marketing of agricultural produce and technical guidance.

10. Use Of Modern Technology: To increase the agriculture productivity the service co-operative society provides information of new modern agriculture technology, tools and equipment's. They also help members to get these tools and equipment's on rental basis. The objective of this is to increase the agricultural productivity.

Teacher's Note

The features help us understand how service co-operative societies work. They are democratic and help all farmers equally in villages.

Exam Trick

Remember the 10 features: Membership, Liability, Share, Democratic, Formation, Capital, Commodities, Guidance, Services, Technology. Use a number word to remember: "Membership Limited Share Democratic Formation Capital Commodities Guidance Services Technology".

Points to Remember

Any farmer can join the society.

Share price is very low (Rs 10).

Democratic management means all vote together.

They provide seeds, fertilizers, and loans.

They teach modern farming methods.

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