CHAPTER – V

SPECIAL TYPES OF CO-OPERATIVE SOCIETY

In Kanyakumari District so many types of other co-operative societies

run successfully, these societies serve the people in a good manner and

customer’s satisfaction. In this work the services of Co-operative Printing

Press, Salt Workers Co-operative Production and Sale Societies, Labour

Contract Co-operative Societies, Barbers and Washermen Co-operative

Societies, Large sized Multi-Purpose Co-operative societies and Other Types of

Societies played an important role to boost the economy of the people of

Kanyakumari District.

Co-operative Printing Press is among the co-operative sector is

rememorable. There are 26 co-operative printing presses in our State with a

total membership of 12645 with share capital of Rs. 2.09 crores487. They fulfil

the printing needs of all co-operatives, Government and general public. In

Kanyakumari District Kanyakumari District Co-operative Printing Works in

Thuckalay is running successfully. Inaddition to these in our State 10 Salt

Workers’ Co-operative Production and Sale Societies are functioning at

present. Out of these, 5 societies are functioning exclusively for the welfare of

Adi Dravida members. These societies are engaged in the production of iodised

salt with financial assistance from the Government under TAHDCO scheme 488.

1. Annual Report of Kanyakumari District Co-operative Printing Works, Thucklay,

2011-2012, p. 3.
2. Personal Interview with Mr. Isakki Muthu, Salt Worker, residing at Nagercoil,
aged 53, dated 08-08-2011.

174
In Kanyakumari District there are some Salt Workers in around the sea areas of

Kanyakumari. The Consumer Co-operative Wholesale Stores, Primary

Co-operative Stores and Primary Agricultural Co-operative Credit Societies

opened medical shops. The co-operative Pharmacies sell medicines to the

public by offering a discount of 12 to 15% on Maximum Retail Prize.

At present, 115 Labour Contract Co-operative Societies are functioning

in our State with a total membership of 34,431 labourers. These societies are

formed to raise the standard of living of SC/ST by providing employment

opportunities to the members by securing contract works489. The members of

these societies are availing the benefits in full as the middle man between the

management and the labourers are eliminated. These societies are provided

with financial assistance in the form of share capital, working capital and

managerial subsidies from the funds obtained from the Government of India 490.

In Kanyakumari District there are 2 Labour contract Co-operative societies are

in working condition they are, Y-115, Poliyoorsalai Labour Contract

Co-operative Society and No-3800, Thucklay Labour Contract Co-operative

Society.

A labourer means an individual who undertakes manual work for wages

and it is his main source of income throughout the year. A labourer also

includes marginal farmers. A labour contractor cannot become member of the

society. A labour contractor would include a person who either on their own

3. Annual Report of Y-115 Poliyoorsalai Labour Contract Co-operative Society, 2011, p.6.
4. Report of Thucklay Labor Contract Co-operative Society, 2010.

175
account or on behalf of their relations undertake piece-work of the nature of

work undertaken by the Society. It should consist of atleast 51 individuals who

are labourers491.

In our State, six Barber Co-operative Societies and three Washermen

Co-operative Societies are functioning with the object of improving the

conditions of barbers and washermen who belong to the economically weaker

sections. In Kanyakumari District so many barbers and washermen are doing

their job in a good manner, they have some association, the association help

them to improve their life style in economically492.

Large Sized Multi-Purpose Co-operative Societies popularly known as

LAMPS. At present there are 17 LAMP Co-operative societies under

Integrated Tribal Development Programme areas and two societies under non-

Integrated Tribal Development Programme areas functioning in the State.

These societies provide single window service for production credit,

consumption credit, supply of agricultural inputs, marketing of agriculture

produce, collection and marketing of minor forest produce and supply of

essential commodities under Public Distribution System to the Tribals493.

These societies have 81,955 tribal members and 9,364 non-tribal

members. In order to enable the Tribals to undertake agricultural operations,

LAMP societies provide short term loans for cultivation and medium term

5. R.Nallathampi., (Editor), Tamilnadu Journal of Co-operation, November, 2009, p,32.

6. Personal Interview with Mr. Madasamy, Barber, residing at Maruthencode, aged
45, dated 14-08-2011.
7. R.Nallathampi., (Editor), Tamilnadu Journal of Co-operation, July, 2006, p, 21.

176
loans for allied activities of agriculture. In order to avail the loan facility, share

capital subsidy has been provided to the members of the society. As these loans

are provided free of interest, interest subsidy to compensate the interest loss has

also been provided. In addition, financial assistance in the form of subsidy for

transport, drivers’ pay and maintenance of vehicles have also been provided.

An amount of Rs. 90 lakhs each for the year 2006-2007 and 2007-2008 has

been sanctioned by the Government as subsidy to these LAMP societies for the

above purposes. Presently most of these LAMP societies are not healthy494.

The Government took special efforts during 2007 – 2008 to rejuvenate

LAMP societies in Kolli Hills area by infusing funds, increasing lending

activities and taking up marketing of tapioca directly to the mills, it being the

major produce in that area. In the process, besides increasing turnover and

profits, higher price for tapioca to the tribal farmers could be ensured on a

sustainable basis495. This experiment will be repeated in other LAMP societies

to improve their performance during 2008-2009.

Above all the other type of societies is Kanyakumari District also render

it services very well to the members. They are 35 co-operative canteens are

also functioning for providing food at economic cost to students, workers and

staff of various institutions in Kanyakumari District.

Salary Earners Societies as the name suggests the member has to be an

employee of that company or department under whose employment the

8. R.Nallathampi., (Editor), Tamilnadu Journal of Co-operation, September, 2006, p,16.

9. Personal Interview with Mr. Thanulingam, Tribal People Leader, residing at
Pechiparai, aged 53, dated 14-08-2011.

177
proposed society is proposed to be organized. He should be a permanent

employee and the employer should have given a certificate u/s 49 of the MCS

Act 1960 for deduction of the Society’s dues from his salary. Minimum

membership is 100 members. In Kanyakumari District nearly 15 Salary Earners

Co-operative Societies are running successfully496.

Over all they are, Kanyakumari District Co-operative Employees

Co-operative Society, Kalkulam Vilavancode Taluk Teachers Co-operative

Society, Kanyakumari District Estate Employees Co-operative Society,

Kalkulam Taluk Teachers Co-operative Society, Kanyakumari District College

Employees Co-operative society, Kanyakumari District Forest and Nutrition

Department Co-operative Society, Kanyakumari District C.S.I Medical Mission

and Rehabilitation Organisation and Church Workers Co-operative Society,

Kanyakumari District Khadi and Village Industries Employees Co-operative

Society, Kanyakumari District Christian Organisation and Church Workers

Co-operative Society, I.R.E Employees Co-operative Society, Kanyakumari

District All Insurance Corporation Employees Co-operative Society,

Kanyakumari District Bank Employees Co-operative Society, Kanyakumari

District Bharat Sanchar Nigam Limited Employees Co-operative Society,

Kanyakumari District Public Work Department Employees Co-operative

Society and General Health Department Employees Co-operative Society497.

10. Annual Report of Kanyakumari District Central Co-operative Bank, Nagercoil,

2002 – 2003, p. 31.
11. Annual Report of Kanyakumari District Central Co-operative Bank, Nagercoil,
2002 – 2003, p. 32.

178
 It has a population based criteria for registration so that it should

become economically viable. There are different norms for rural and semi-

urban and urban areas498. These Societies provide agricultural inputs like

implements, fertilizers, seeds, pesticides etc. Only farmers can become member

of these societies.499

Adivasi Service Societies are exclusively for the Adivasi people

(Scheduled Tribes). The Scheme of the Government which are for the

upliftment of the Adivasis are implemented through these Societies. The entire

produce of the adivasis are purchased by these societies. These societies work

as the agents of the Tribal Development Corporation of Tamil Nadu500.

Atleast 1500 members should join in the formation. Share capital should

be minimum Rupees 15,00,000. These members should not be members of any

other Co-operative banks. The promoters should not have been punished under

the Indian Penal Code for any criminal activity. They should not have been

disqualified under the Tamil Nadu Co-operative Societies Act, 1960. The

proposal for collection of share capital and license to conduct banking

operations are routed through the co-operation department to the Reserve Bank

Of India (RBI). No proposal is cleared without the permission of the RBI. A

joint survey has to be undertaken by the Chief Promoter and an officer from the

12. Report of K.V-133, Kumarankudi Village Co-operative Credit Society, 2008. p.26.
13. Report of No-2650, Thalakkulam Iranial Plowing Workers Co-operative Society,
2010, p.3.
14. Report of Tribal Development Co-operation of Tamilnadu, Pechiparai, 2011. p.6.

179
co-operation department. The joint survey studies the feasibility of the

proposed Bank.

These societies are in the sale and purchase of agricultural produce,

implements, fertilizers, seeds etc. These societies are formed at the Block

Level. They also undertake other consumer activities. Primary Agricultural

societies can become members of these Societies501. This is a sugarcane

processing Society. The members have to be cane producers residing in the

area of operation. It also manufactures molasses and other bye products. It

requires industrial license from the Government of India.

Primary Dairy Societies is organized at the village level for collection of

milk from members owning milk cattle. There should be atleast fifty members

in the society. A prior permission for collection of milk from the members is

required. This permission is granted by the District Dairy Development

Officer502. These societies are formed to promote poultry, piggery etc.

Minimum fifty members should participate in the activity. They should be able

to certify availability of food, medical facilities and conductive atmosphere for

the livestock. The project report should be certified by the District Animal

Husbandry Officer. Availability of water is important. Similarly there should

be an availability of market for the produce503.

15. Record Book of Kanyakumari District Central Co-operative Bank, Nagercoil,

April, 2000, p. 68.
16. Report of Kanayakumari District Co-operative Milk Union, Nagercoil, 2010. p.13.
17. R.Nallathampi., (Editor), Tamilnadu Journal of Co-operation, January, 2003, p, 27.

180
 Lift Irrigation Societies are atleast five members having cultivable land

of 15 Hectares should join for application. The project report will have to be

sanctioned by NABARD, if financial assistance is to be availed by the Society.

If water is to be lifted from river, then permission of the Irrigation Department,

Government of Tamil Nadu will have to be acquired. In case the water is to

lifted from well and other ground resources then certificate from the District

Ground-Water Survey Officer is necessary504.

Handloom Societies are minimum fifty handloom weavers should join

the Society. They should have their own working handloom or at least a token

from a private handloom owner. The member should have sufficient space for

production of handloom cloth or the proposed society should have a shed for

production of handloom cloth. The society should be in a position to supply

yarn to the members and should have adequate marketing facilities for the

produce505.

Powerloom Societies are minimum ten powerloom owners/Texmark

holders should join in formation of the society. Members should themselves

operate the powerlooms and should not own more than four powerlooms and

should have sufficient space for production of cloth. The society should have

adequate facility for supplying yarn to the members as well as marketing their

produce. These societies can undertake production of cloth varieties as

permitted by Textile Commissioner506.

18. Ibid., p.28.

19. Report of Thengapattinam Handloom Co-operative Society, 2002. p.12.
20. R.Nallathampi., Op.Cit., p, 30.

181
 Only cotton producing farmers can become its members. License to

operate a spinning mill is required. This license is given by the Director -

Handloom, Powerloom and Co-operative Textiles507. The society should

possess minimum five acres of land in industrial zone and atleast thirty

entrepreneurs should join in the proposed Industrial Estate. The proposed

industrial estate has to be given clearance by the District Industries Officer. A

certificate regarding availability of power, water from appropriate authorities is

required. Minimum thirty thousand Rupees have to be collected by the

members as share capital508.

Transport Societies members should hold a valid driving license or may

be an automobile mechanic or be an assistant to the driver. There have to be

minimum ten members. The Chief Promoter should guarantee that sufficient

work is available for the vehicles of the Society. A certificate from financial

institution is required certifying the availability of finance for acquisition of

vehicles509.

Electricity societies are in rural areas for distribution of electricity and

collection of bills from the farmers. Clearance from the State Electricity Board

is required510. The General Societies not covered under the above categories

fall under this type. There are also other co-operatives like: Farming Societies,

Other Processing Societies, and Salary Earners Society Coming under the

21. Report of Kanyakumari District Co-operative Spinning Mill, 2004, p. 7.

22. R.Nallathampi., Op.Cit., p, 31.
23. Report of Marthandam TNSTC Co-operative Society, 1999, p. 23.
24. Report of Kanyakumari TNEB Co-operative Society, 2001, p.3.

182
Banking Regulation Act Primary Co-operative Banks, Salary Earners Society

(Not Coming under the Banking Regulation Act), Other Urban Credit Societies

and Other Industrial Societies.

The Tamil Nadu State Co-operative Bank Ltd. ((State Level)

The District Central Co-operative Banks (District Level)

The Primary Agricultural Credit Co-operative Societies(Primary Level). The

Tamil Nadu State Co-operative Agriculture and Rural Development bank Ltd.

District Level Branches, Taluk Level Branches, The Tamil Nadu State

Co-operative Housing Finance Corporation Ltd, The Tamil Nadu State

Co-operative Marketing Federation Ltd. (State Level), The District

Co-operative Marketing Societies / The District Sale & Purchase Co-operative

Union (District Level), District Multi-purpose Service Co-operatives, The

Block Level Sale & Purchase Co-operative Union (Block Level), The Tamil

Nadu State Cotton Growers Marketing Federation The Handloom Weavers

Co-operative Societies(Primary Level)511.

The Tamil Nadu State Co-operative Fisheries Federation Ltd. (State

Level), District Fisheries Co-operative Societies Federation (District Level),

Primary Fisheries Co-operative Societies (Primary Level), The Tamil Nadu

State Co-operative Consumers Federation Ltd(State Level), Wholesale

Consumer Co-operatives, Primary Consumer C-operatives (Primary Level),

The Tamil Nadu State Co-operative Union Ltd. ((State Level), District

25. Record Book of Kanyakumari District Central Co-operative Bank, Nagercoil,

April, 1993, p. 32.

183
Co-operative Board at District Level, The Tamil Nadu State Caderisation

Co-operative Society Ltd. ((State Level), District Co-operative Caderisation

Society (District Level), Block-Level Co-operative Supervising Union

(Primary Level), The Tamil Nadu State Cotton Ginning Co-operative

Processing Societies Federation Ltd. ((State Level), Primary Cotton Ginning &

Pressing Co-operative Societies (Primary Level), The Tamil Nadu State

Agricultural Produce Marketing Committees Federation LTD. (State Level),

Agriculture Produce Market Committees (Primary Level), The Tamil Nadu

State Co-operative Spinning Mills Federation Ltd. (State Level), Co-operative

Spinning Mills (Primary Level), Co-operative Sugar Factories (Primary Level),

The Tamil Nadu State Forest Labourers Co-operative Societies Federation Ltd.

(SL), District Level Forest Labourers Co-operative Societies Federation

(District Level), Primary Forest Labour Contract Co-operative Societies

(Primary Level), The Tamil Nadu State Labour Contract Co-operative Societies

Federation Ltd512.

The District Labour Contract Co-operative Societies Federation (District

Level), Primary Labour Contract Co-operative Societies (Primary Level), The

Tamil Nadu State Co-operative Industrial Estate Federation Ltd((State Level),

Industrial Co-operative Estates (Primary Level), The Tamil Nadu State

Co-operative Oilseeds Growers Federation Ltd. (State Level), Primary Oilseeds

Co-operative Societies (Primary Level), The Tamil Nadu State Co-operative

Poultry Societies Federation (State Level), Primary Poultry Co-operative

26. Ibid., p.33.

184
Societies (Primary Level), The Tamil Nadu State Co-operative Banks

Association Ltd (State Level), The Tamil Nadu State Urban Co-operative

Banks Federation Ltd. (State Level), Urban Co-operative Banks (Primary

Level), The Tamil Nadu State Co-operative, Tribal Development Corporation

Ltd. ( State Level), Adivasi Service Societies (Primary Level), The Tamil Nadu

State Co-operative Dairy Societies Federation Ltd.( State Level), District

Level/ Block Level Dairies Co-operative Societies Federation (District Level)

and Primary Dairy Co-operative Societies (Primary Level)513.

The Government while understanding the importance of co-operatives

has introduced several schemes for promoting the spirit of co-operation. Both

the Indian Government as well as the Government of the State of Tamil Nadu

has introduced several schemes for the co-operatives. A few of them are listed

here. Take benefit of them.

Share Capital Contribution to Credit Institutions under LTO Fund (State

Level Scheme). The Government sanctions share capital contribution to

District Central Co-operative Banks. This contribution is given out of the LTO

Fund of the NABARD. The provision is made every year to repay this loan 514.

Another Scheme is Loans to Co-operative Credit Institutions for conversion of

short term loans into medium term loans. Further, the government introduced

National Agricultural Credit Stabilization Fund (Centrally Sponsored Scheme),

In drought conditions the members of Agricultural Credit Societies may not be

27. Ibid., p. 34.

28. Ibid.,

185
able to repay the crop loans. This scheme helps to convert their short term

loans into medium term loans and fresh crop loans are made available to the

members515.

Inaddition to this, another section for Crop Production Incentive to

Agriculturists (Dr.Punjabrao Deshmukh Crop Production Incentive Scheme),

this scheme is applicable for Kharif and Rabbi Crops taken from 1.4.90

onwards. The farmers borrowing loans of RS.25,000 or less and who repay

their loans fully before the due date are eligible for 4 % of the principal amount

as an incentive516.

In the industrial co-operative societies of weaker sections of the

societies, the Government has several schemes. The Government sanctions

share capital in the ratio 1:3, to enable the societies to borrow funds from the

financial institutions. Financial Assistance for Tools and Equipment’s: The

Government sanctions loans upto RS. 23,000/- to the members of such

societies as 50% loan and 50% subsidy, for the purchase of tools and adopting

improved methods of production.

Loans and subsidies for the construction of Godowns, workshops/

worksheds the government gives upto Rs. 75,000/- (75% loan and 25%

subsidy) to the societies for construction of worksheds or Godowns. Interest

Subsidy for Working capital: The government gives an interest subsidy upto

3.5% to 4.5% on the amount borrowed by the co-operative. This scheme helps

29. Ibid., p. 33.

30. Ibid., pp. 33-34.

186
to reduce the burden of interest on the co-operative society which is to be paid

to financial agencies. Block Level Village Artisans Multipurpose Co-operative

societies: grant-in-aid: Under the scheme of employment guarantee to the rural

artisans composite loans for Medium term are given from Rs 30,000/0 to Rs.

50,000/- per member517.

Central Sector Scheme for Development of Women Co-operatives

Under this scheme financial assistance would be provided by the Central

Government on 100 % basis to the newly formed co-operative societies by the

women as well as existing women’s co-operatives518. The financial assistance

for the new societies on share capital is Rs. 40,000 crores and on working

capital 40,000 crores and on subsidy is Rs. 20,000 crores and the total amount

of Rs. 1,00,000 crores. The financial assistance for the District Federation on

share capital is Rs. 80,000 crores and on working capital 80,000 crores and on

subsidy is Rs. 40,000 crores and the total amount of Rs. 2,00,000 crores. The

financial assistance for the State Federation on share capital is Rs. 2,00,000

crores and on working capital 2,00,000 crores and on subsidy is Rs. 1,00,000

crores and the total amount of Rs. 5,00,000 crores.

Grant of financial assistance to Scheduled Castes / Nav buddhas

marginal farmers for the purchase of shares of Co-operative sugar factories :

Financial assistance is given to the above mentioned categories of persons to

acquire share in sugar factories. These loans are in terms of 50% interest free

31. Ibid., pp.34-36.

32. Ibid., pp. 37-38.

187
loans and 50 % subsidy. Financial aid for purchase of Shares in Sugar factories

to Adivasis. Grant-in- Aid to sugar factories for road construction works in

sugar factories, Assistance to the tune of Rs 3/- per tonne of sugarcane crushed

is given to the sugar Co-operative for construction of roads. Grant of loans to

financially weak and sick Co-operative sugar factories for rehabilitation. Share

Capital Contribution in Co-operative Sugar factories (NCDC): NCDC

sanctions upto 50 % of Government Share capital in developed areas and 65 %

of the Government share capital in non- developed areas519. The Warehousing

Corporation 90% assistance for the construction of Godown out of which 50%

is loan and 40% is Government share capital.

Co-operative Education, Research and Training was introduced and

implemented through various organisations in the co-operative sector. The

Tamil Nadu Co-operative Union which was established in 1914 imparts

co-operative education and training. The union also takes steps to propagate the

ideals of co-operative movement through conduct of exhibition and other

methods of publicity520.

There are 20 co-operative training institutes in the State. Out of these 11

are independent and 9 are functioning as the units of Tamil Nadu Co-operative

Union. All these units conduct Diploma course in co-operation of 36 weeks

duration and award diploma to the candidates. During the year 2007-08, 866

students have been trained. In addition, these institutes conduct short term

33. Ibid., p. 40.

34. Report of Nagercoil Institute of Co-operative Management Studies, Nagercoil,
2000, p. 33.

188
courses on computer operation and jewel appraisal. These institutes also

conduct correspondence courses for the employees of the co-operatives who

are unable to undergo the direct training521.

Two institutes of co-operative management, one at Chennai and another

at Madurai are run by the National Council for Co-operative Training, New

Delhi. These institutes conduct, higher diploma course in co-operative

management. They also run a number of short term courses for the staff and

officers of co-operative department and societies including those under the

Functional Registrars. In the year 2007-08, these 2 institutes conducted 172

courses till 29.2.2008. They have planned to conduct 195 courses in 2008-

09522.

Three co-operative industrial training institutes at Bargur in Dharmapuri

District, Pattukottai in Thanjavur District and Tiruchuzhi in Virudhunagar

District and one Co-operative Polytechnic at Lalgudi in Trichy District are run

by Tamil Nadu Co-operative Union. These institutes provide technical training

to the youths for their self-employment. Averages of about 400 students get

technical education every year through these industrial training institutes and

polytechnic. In Kanyakumari District Nagercoil Institute of Co-operative

35. R.Nallathampi., (Editor), Tamilnadu Journal of Co-operation, October, 2002, p, 16.

36. Annual Report of Kanyakumari District Central Co-operative Bank, Nagercoil,
2008-2009, p.39.

189
Management Studies is started in the year 1999. It is under the control of The

Nagercoil Co-operative Housing Society Limited523.

In order to encourage the students who are doing research in

co-operation, the Tamil Nadu Co-operative Union has created a share of Rs.

5.00 lakhs each in the Madras University, Madurai Kamarajar University,

Bharathiar University and Annamalai University. Out of the interest earned on

the investment of this deposit, scholarships are awarded to the research

students524.

The Tamil Nadu Co-operative Union collects 3% of the net profit of

co-operative societies for Co-operative Research and Development Fund and

2% of the net profit for Co-operative Education Fund and maintains these

funds. As on 29th February 2008 the amount available in this corpus fund of

CRDF and CEF are Rs.65.80 crores and 44.15 crores respectively. Proceeds

from such corpus is being utilised for development of co-operative movement,

development of societies through infusion of new technology, research in

critical areas, conduct of member education programme and training and

carrying out publicity and propaganda525.

In the year 2008-2009, it has been proposed to meet the cost of

development of common banking software for all the co-operative banks and

37. Annual Report of Nagercoil Institute of Co-operative Management Studies,

Nagercoil, 2001, p. 31.
38. R.Nallathampi., (Editor), Tamilnadu Journal of Co-operation, February, 2002, p,36.
39. Annual Report of Kanyakumari District Central Co-operative Society, Nagercoil,
2008-2009, p. 126.

190
Employees Co-operative Thrift and Credit Societies (ECS). Further it has been

proposed to give appropriate grants to unviable and financially weak Primary

Agricultural Co-operative Banks and Employees’ Co-operative Thrift and

Credit Societies to purchase computers and other accessories for taking up

computerisation526. Thus Special Types of Co-operative Societies in

Kanyakumari district is working progressively for the uplift of the people of

Kanyakumari District. All these Co-operatives Societies functioned under

certain rules and regulations.

40. Ibid., p. 127.

191