What are Cooperative Sector Industries?

By BYJU'S Exam Prep

Updated on: November 14th, 2023

Cooperative sector industries are run and owned by raw material producers, suppliers, employees, or a combination of both. After independence, the cooperative movement in India experienced significant growth. Every Indian village favored cooperative activity. For example, these industries include the handloom, dairy, and food processing sectors. Employees, raw material manufacturers, suppliers, or both run and own these industries.

Cooperative Sector Industries

According to the International Co-operative Alliance (ICA), a co-operative is “an independent group of citizens who volunteer to achieve their common economic, social and cultural needs and ambitions through a jointly owned and democratically controlled firm”. Article 19(1)(c) of Part III of the Constitution was amended to include the word “co-operative” after the words “unions and unions”.

The misery and unrest that prevailed in the last quarter of the 19th century gave rise to the cooperative movement in India. The industrial revolution dealt a fatal blow to the village industries, and the people were forced into agriculture as their only source of employment and subsistence.

  • The agribusiness was no longer viable due to the consequent subdivision and fragmentation of properties.
  • The rigors of collecting land tax, the uncertainty of rainfall, and consequently low crop yields, among other factors, forced the farmers to look for moneylenders.
  • Amul, Kerala Co-operative Milk Marketing Federation, Karnataka Milk Federation (KMF), Indian Farmers Fertilizer Cooperative Limited, Indian Coffee House, and others are some of the most famous and important cooperatives in India.

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