Cooperative movement in India

India since the country's independence from Britain in 1947 has seen a huge growth in Cooperative societies serving mainly the farming sector.

For example, most of the sugar production in India takes place at mills owned by local cooperative societies. The members of the society include all farmers, small and large, supplying sugarcane to the mill. Over the last fifty years, the local sugar mills have played a crucial part in encouraging political participation and as a stepping stone for aspiring politicians.

This is particularly true in the state of Maharashtra where a large number of politicians belonging to the Congress party or NCP had ties to sugar cooperatives from their local area and has created a symbiotic relationship between the sugar factories and local politics. Unfortunately, due to a policy of "profits for the company but losses to be borne by the government", has made a number of these operations inefficient.

Cooperatives also play a great part in dairy marketing as well as banking.Amul is the biggest milk cooperative in India. Cooperative banks in India serve both the rural and urban societies. Just like the Sugar companies, these institutions serve as the power base for local politicians.

Verghese Kurien in his book "I too had a dream" details the problems, solutions and experiences he had in setting up and developing the dairy co-operative society now known as Amul.

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