Cooperative movement in Assam

Author: Dilip Kumar Sarma

Co-author: Rupa Barman Borgohain

Published in The Assam Tribune, Guwahati

Image Source: Internet

Some time ago the Central Government created an independent Ministry of Cooperation with the vision of ‘prosperity through cooperation’. This move reflects the ‘felt need’ of expanding and strengthening the cooperative movement for giving extra impetus to the economy. It can be said that the issues of social justice and the ‘common good’ are back in business.

According to the International Labour Organization (ILO), a cooperative is 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. However, cooperatives in India started as an administrative measure (and not as voluntary initiatives as in Germany and England) primarily to help farmers overcome indebtedness and gain access to credit, etc., that the colonial masters rightly thought of as the root causes of the agrarian unrest seen across the subcontinent, especially in the Deccan region and Punjab. But a few decades later, the Gandhian Constructive Development Programme that was running parallel to and feeding the Indian freedom movement, adopted at least the non-credit stream of the cooperative movement.

It is worthwhile to remind ourselves that during the last decades of the 19th century and the first decades of the 20th century, Assam also saw severe indebtedness among the poor farmers. Thus, the cooperative movement in Assam primarily focused on giving small loans for agricultural production in rural areas and petty and middle-level traders in urban areas. For these, a three-tier institutional structure was created: provincial bank at the top, central banks at different district and subdivisional headquarters, a few town banks at places like Shillong, Sylhet, Silchar, Guwahati, Jorhat, etc., at the middle and credit societies in rural areas at the bottom of the ladder. The Shillong Cooperative Town Bank Ltd. was the first cooperative organized and registered in Assam on September 3, 1904. The middle layer is no longer there in the present structure in Assam. At the top of the structure is the Assam Cooperative Apex Bank Ltd., and the Gram Panchayat Samabay Samiti (GPSS) is the primary agricultural credit societies at the grassroots.

In Assam, cooperatives were reorganized in 1973. In order to revitalize the GPSS, they were given the responsibility of running the public distribution system (PDS) shops in villages of Assam. Though intended to generate some cash flow into the system, it brought corruption into many cooperatives. In 1992, the State Government also opened a woman’s cooperative in almost all the Gram Panchayats of Assam. But the intent was not backed by adequate action. Another attempt to revive the GPSS was made after 2007 through a measure of cleaning up the balance sheet of these institutions. The money reportedly remained parked at the Cooperative Apex Bank.

If one writes a summary about the cooperative movement in Assam, it would be:

(i) Gandhian initiatives with help of some active officials succeeded primarily in two areas of cooperative movement – weaving and consumer stores. The consumer stores started during the economic crisis of the 30s and WWII when the essential goods were scarce in the market and the sky-rocketing prices made the essential commodities available at the ‘control’ price;

(ii) The credit cooperatives and town banks failed miserably because of ‘non-ownership’ attitudes of the members;

(iii) There was no attempt for addressing the cooperative potential of Assamese society’s common decision-making bodies like the Raijor Mel or collective institutions like the Namghar. Cooperative senior official (service years: 1935-70) Arun Chandra Hazarika in his autobiographical book, Athai Sagorot Nepalu Je Paar, described many such collective yet voluntary practices in Assam, and pointed out that there was no attempt of co-option.

It is not that Assam has not seen successful cooperatives; to name a few, we can point out the Sibsagar District Cooperative Bank Ltd, Dergaon Sugar Mill, Silghat Jute Mill, Kamrup Mahila Samiti Ltd. (till they remained on their feet). Cooperatives like Binapani and Pabhoi in Biswanath town are still running though they are past their heyday. The Bholaguri Satra Gaonlia (rural) Bank is the oldest surviving cooperative institution of the State since 1920, now completing 100 years. At present, one can cite the Sitajakhala Milk Cooperative at Jagiroad, Lakhimi Mahila Bank at Jorhat, etc. There have also been many endeavours now through cooperatives – mainly in dairy, piggery, pickle making, weaving, by-products of weaving, beekeeping, etc.

To revive and strengthen the cooperatives in Assam, the State Cooperative Department, NABARD, cooperatives and social change-makers need to work in cohesion on comprehensive strategies. Some of them are: First, farming in ‘commons’, fishing in rivers, or collecting minor forest products have been women’s activities in Assam. But with no right over the ‘commons’ and fishing, doors of many formally organized economic activities closed for them. In the same way that the Government has given communities the rights over minor forest products, women collectives such as cooperatives can also be given leased ‘ownership’ for productive use of the ‘commons’. It will help women collectives to be part of cooperatives more fruitfully.

Secondly, a cooperative cannot survive on just one type of business. The policy of ‘one cooperative, one type of businesses in Assam is a restricting idea. At present, the GPSSs do not engage in any significant businesses except outsourcing the PDS shops and thus needlessly occupying the ‘multipurpose activities’ space. Similarly, almost all panchayats have a dormant women’s weaving cooperative blocking the way of starting new women’s cooperatives. More than one ‘multipurpose cooperative’ and ‘women weaving cooperative’ in a single GP should be allowed.

However, the third and most significant aspect of cooperatives is the need to change the law lessening the bureaucratic interference. The Mutually Aided Cooperative Society Act (MACS-1995) in undivided Andhra Pradesh made their cooperatives autonomous and successful. The Vaidyanathan Committee (2004) also advocated the ‘Model Cooperative Act’ in the line of MACS for freeing the cooperatives of various controls.

Fourthly, the Vaidyanathan Committee also made provisions of funds for revamping the PACS and GPSS in our State. This should be used to clear the balance sheets and for funding required training making these structures more democratic and economically viable.

The fifth aspect is that lack of quality of leadership has been the single-most primary reason for the non-growth of cooperatives in Assam. This is a serious challenge but the good news is that leaders can be developed. But for this, the Government should start working on imparting a mentorship model of training programme that is not just technical but also include other leadership components like strategic, managerial and behavioural abilities.

Once these strategies are addressed in a comprehensive, collaborative, perpetuating manner, the cooperative movement in Assam would be on a growth trajectory.

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