The cooperative movement was started by Robert Owen, in the year 1844. He formed a consumer's cooperative society in England with 28 workers as members, called " Rochdale Society of Equitable Pioneers".

Cooperative credit societies are societies formed for providing short-term financial help to their members. Agriculturists, artisans, industrial workers, salaried employees, etc., form these credit societies.

According to Sir Horace Plunkett, Co-operation is "better farming, better business and better living".

A cooperative is a form of business organisation that is owned and controlled by the people who use its products, supplies or services. Although cooperatives vary in type and membership size, all were formed to meet the specific objectives of members, and are structured to adapt to member's changing needs.

Industrial cooperatives are formed by industrialists. They can decide to work together to increase marketing possibilities. This helps to protect themselves and solve their problems. Examples : Matchbox factories, chemical industries and crackers industries.

When various farmers in a village pool their land together and agree to treat the pooled piece of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the cultivation, and market the crops jointly, they are assumed to have formed a cooperative farming society.

(i) Producer co-operatives are established and operated by producers.
(ii) Producers can decide to work together or as separate entities to help increase marketing possibilities and production efficiency.

1. Yes. If the members of the managing committee are corrupt they can swindle the funds of the co-operative society.
2. Many cooperative societies have faced financial troubles and closed down because of corruption and misuse of funds.
3. Co-operative societies give loans only for productive purposes and not for personal or family expenses.
4. Therefore the rural poor continue to depend on the money lenders for meeting expenses of marriage, medical care, social commitments, etc.
5. Co-operatives have not been successful in freeing the rural poor from the clutches of the money lenders.
6. The members of the managing committee may not have the required qualification, skill or experience. Since it has limited financial resources, its ability to compensate its employees is also limited.
7. Therefore it cannot employ the best talent. Lack of managerial skills results in inefficient management, poor functioning and difficulty in achieving objectives

1. Consumer cooperatives are organized by consumers that want to achieve better prices or quality in the goods or services they purchase.
2. In contrast to traditional retail stores, or service providers, a consumer cooperative exists to deliver goods or services rather than to maximize profit from selling those goods or services.
3. Nationally, the most widely used cooperative form is the credit union, with some 90 million members.
4. Credit union assets have grown a hundred-fold in three decades.
5. Credit unions are essentially cooperatives of people that use banking services.
6. Students' cooperative stores, Cooperative provision stores, and supermarkets set up on cooperative societies of India are examples of this type.