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ANNUAL REPORT 2014-15 TO 2016-17 DEPARTMENT OF COOPERATION GOVERNMENT OF SIKKIM SAHAKARI BHAWAN-TADONG GANGTOK, EAST SIKKIM Page - 0 - CONTENTS Sl. No Particulars Page No 1 Introduction 2 – 3 2 Myths and Realities 4 3 Cooperative Movement in Sikkim 5 4 Administrative Set up 6 5 Present scenario 8 6 Existing Manpower of Cooperation Department 9 7 Cooperative Societies in Sikkim 10 8 Apex Cooperative Societies/SCCS/Urban Coop. a) Sikkim State Cooperative bank Ltd. (SISCO) 11 – 12 b) Sikkim State Cooperative Union (SICUN) 13 - 17 c) Sikkim State Coop. Supply and Mktg Fedn Ltd (SIMFED) 18 - 27 d) Denzong Agricultural Cooperative Society Ltd (DACS) 28 - 32 e) Sikkim Cooperative Milk Producers’ Union Ltd (SCMU) 33 - 39 f) Sikkim Consumers’ Cooperative Society Ltd (SCCS) 40 g) Citizen’s Urban Cooperative Bank Ltd (UCB) 41 9 Training and Awareness Programs organized by Department 42 – 47 10 Training conducted under RKVY 48 11 Assistance to Coops for marketing of agril. produces 49 12 Managerial assistance to MPCS 50 13 Financial Assis tance to Other Cooperatives 50 14 NCDC assistance to Cooperatives for business diversification 50 15 Formation of Labour/ Contractor ’s Coops under Govt. Policy 51 16 Construction works executed by the Cooperatives (2014-17) 52- 73 17 Infrastructure Development of the Cooperatives 74 – 75 18 Grants-in-aid for society’s building construction 76 – 77 19 Construction of society’s buildings and trainings conducted 78 under RKVY 20 Agriculture /farm produce marketed by Cooperatives 79 21 Sub-Division wise coop. societies and membership 80 enrollment 22 Status of Primary Cooperatives (2014 – 2017) 81 – 82 23 Summary of business in Co-operative Sector 83 - 85 Page - 1 - Introduction : A Cooperative is defined as an autonomous association of persons united voluntarily to meet their common Economic, Social and Cultural needs and aspirations through a jointly owned and democratically controlled Enterprise. Cooperatives are based on the values of self- help, self-responsibility, democracy, equality, equity and solidarity. Hence, it is a member- driven and democratically self-managed association of persons united voluntarily for the achievement of common goal that stands for service, joint-action, self-reliance and economic- freedom with accountability and transparency. Cooperative members believe in the ethical values of honesty, openness, social responsibility and caring for others. It is well said that leading a life in cooperative manner is not a new process, but it is as old as human civilization. The system was formally institutionalized with the establishment of the International Cooperative Alliance (ICA) during 1895. The fathers of the Cooperative as a System gave birth to noble Values and Principles of Cooperatives and applied them for the better understanding and propagation of this noble movement across the globe. The Values of Cooperative viz; Self-help, Self-responsibility, Democracy, Equity, Equality, and Solidarity; and the Principles are the Guidelines by which Cooperatives put their Values into practices in order to reach their noble goals. Each Cooperative is expected to adhere to these Guidelines or Principles of cooperatives in strict sense viz; Voluntary and Open Membership, Democratic Member Control, Member Economic Participation, Autonomy and Independence, Education, Training and Information, Cooperation among Cooperatives, and Concern for Community. In India, the past history says that during the agrarian movement in the Deccan, the peasants revolted against the money-lenders who were charging excessive rate of interest on the loans taken at the time of their dire needs. The peasants were compelled to take the law into their own hands and confiscated the promissory notes and mortgage-deeds from those money- lenders. These chaotic situations gave birth to Taccavi Legislation by the government leading to the formation of the Cooperative Societies. Then a series of famines broke out in the country from 1875 onwards that compelled the government to form a Famine Commission for finding ways and means in view of mitigating the fury of famine over the country, and improving the economic status of the peasants. The early forms of Cooperatives were the organization of Nidhis and Chit Funds in Southern India. It is also recorded that in 1892 one Civil Servant of the Madras Presidency named Sir Frederick Nicholson was sent to Europe to study the structures of Cooperatives out there. It was he who recommended the formation of the Rural Cooperative Credit Societies adopting the German pattern called Raiffeisen; and then the Government formed a Law Committee in 1901 which formulated a blue-print of the Cooperative Laws. Then the Primary Credit Societies were also formed by the Government of India with the enactment of the Cooperative Credit Societies Act 1904. With the Cooperative Societies Act 1912 the Government formed the non-credit Societies and also Federal Cooperative Organizations in the Country. The Maclagan Committee in 1915 declared that the area of operation of such a Society should be limited and small so that mutual knowledge, Page - 2 - social cohesion and closer connection amongst its members are maintained and these were taken into consideration to be the guiding Principles. The said Committee also recommended that the Membership of a Cooperative Society should be open to all people belonging to different ethnic communities irrespective of their caste and creed. According to the Government of India Act 1919, the Cooperative Societies turned into a transferred subject and many provinces began to enact their own Cooperative Societies Act. Again, with the Government of India Act, 1935 Cooperatives was made State subject. Further, in 1945 the Cooperative Planning Committee declared that the Village Primary Credit Societies should have the coverage of those activities effecting the daily life and business of the agriculturists, artisans and the like; and thus, functioning as the Multi-purpose Societies (MPCSs). The Committee also recommended the organization of Societies for fruits and vegetable growers, land reclamation, animal husbandry, fisheries, agricultural marketing and processing, small and subsidiary industry, labour, consumers, housing and urban credit etc. The Reserve Bank of India in 1951, appointed the All India Rural Credit Committee (AIRCC) which submitted its detailed Report in the year 1954 whereby the said Committee recommended wide areas of operation for Village Societies with a view to uplift their economic viability and felt the necessity of reorganizing small Societies by the process of merger. The Committee further recommended government participation in the equity of such Cooperative Societies. Several Committees have examined minutely the working system of Cooperatives in India with a view to make them powerful instruments in the socio-economic up-liftment process. It has also been suggested by the said Committee that the Cooperative Societies could be made viable and vibrant by: providing financial and managerial assistance by the government; strengthening infrastructure and development of professional skills; ensuring democratic management of professional skills; ensuring open membership . Constrains faced by Cooperatives Against the quantitative growth, the cooperative sector is endangered with various types of constraints in the areas of legislation and policy supports, resource availability, infrastructure-development, institutional inadequacies, lack of awareness among members, erosion of the democratic content in management, excessive bureaucratic and governmental controls and unnecessary political interference in the operations of the Societies in our country. Page - 3 - MYTHS AND REALITIES The Myths: Cooperatives do not work, and are not competitive, thus they cannot flourish, consequently fail. Cooperatives function as agencies of government, thus they are not at all independent/ autonomous. Too much democracy is too bad for a business. The Cooperative Values are incompatible with commercial success. Cooperatives are very poorly managed and under-funded. The Realities: The Cooperatives provide over 100 million jobs to unemployed people worldwide, thus Cooperatives have been contributing substantially towards solving unemployment problem. Over 120 million people, 2 out of every 5 people are members of 48,000 Cooperatives in United States. In Finland, Norway, Canada and many other countries including India – Cooperatives are doing exceedingly well. Democracy in Cooperative business has proved as an effective dose in boosting up people’s sense of Self-reliance, Self-confidence, Self-control, Self-accountability, Self- sufficiency, Faithfulness and Transparency. Cooperatives are democratic socio-economic institutions and hence, the role of Government and Department is simply promotional or catalytic one. Due to high priority given to the promotion of Cooperative Movement based on internationally accepted Principles of Cooperation and promulgation of Cooperative Principles and Theory, Leadership Development and ensuring professional management of Cooperatives, the materialistic and individualistic attitude of people is being subdued gradually. Page - 4 - COOPERATIVE MOVEMENT IN SIKKIM The Theory and Concept of Indian Cooperative Movement established its roots in the State of Sikkim with the enactment of the Sikkim Cooperative Societies Act 1955. However, with the enactment and extension of new Cooperative Societies Act 1978 followed by enforcement of
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