Karnataka > Co-operative Movement
Karnataka has a fascinating history of Co-operative Movement. Co-operative culture in various economic activities in the State is clearly evident. It is deep-rooted since the official launching of the movement in 1904. The first Primary Agricultural Credit Society to be founded in the country was at Kanaginhal (Gadag tq) of Gadag district on 8th May 1905, and it is still functioning. Similarly, the first Urban Co-operative Credit Society to be organised in the State was at Betageri on 18-10-1905 [Gadag district, now defunct). The Swadeshi Movement of 1905 inspired many local leaders and social workers to start the co-operatives to cater to their local needs. Bangalore City Consumers Co-op. Society started in December 1905 is said to be the first Co-operative institution in princely Mysore. By 1906, the places like Belgaum, Gokak, Mysore, Hubli, Dharwad and Sira were having urban co-operative Banks.
The erstwhile princely Mysore State had promoted a unique breed of financial institutions called "Agricultural Banks" in 1894, a decade earlier to the official launching of the Co-operative Movement by the Government. The modus operandi of agricultural banks was such that they had imbibed co-operative principles though their constitution was of public company, limited by guarantee. Since 1912, the diversification took place in the Co-operative Movement. In course of time, non-agricultural and non-credit societies emerged in large number all over the state. In the early years, the Governments of Princely Mysore and the Bombay Presidency earnestly encouraged the spread of the movement in rural areas by extending special incentives and appointment of honorary co-operative supervisors to guide the co-operative institutions.
It is interesting to know that in order to cater to the needs of the local people, special economic activities like fencing, hunting, bunding, cattle breeding, insurance, farming, grain banks, fisheries, forest labour, special marketing, education, irrigation, house building, consumer goods selling etc., were undertaken under co-operative sector much earlier. Holding the taluk and district level co-operative conferences to review the progress of the movement was a regular feature in Bombay-Karnataka area in 1920-1930. In order to propagate the principles of co-operation in the rural areas and to have a mass appeal there was a special drama troupe to propagate the idea of co-operation at Amminabhavi of Dharwad district. Many of the District Central Cooperative banks, specially the banks working at Dharwad, Madikeri, Sirsi, etc., came to the help of groaning indebted farmers during the economic depression of 1929-30 when the movement in general had also received a set-back. Many of the farmers could not pay their overdue to the banks. Though these co-operative banks purchased the pledged properties of the debtors, the same was returned to them without any profit when the debt was cleared. This spirit of co-operation helped those co-operative banks to grow further when the economic conditions improved. Many banks arranged debt reconciliation boards for settlement of loans.
Karnataka has many firsts in the co-operative ventures in the country. The Hubli Cotton Sales Society Ltd., Hubli, organised in 1915 is considered to be the first Indian co-operative marketing society. The Farmers Service Society (FSS) sponsored by Canara Bank in 1973 at Bidadi in Bangalore district is such first society in the country. Similarly, the Sports Promotion and Development Society at Chandargi of Belgaum district is a unique organisation of all-India importance founded in 1984. Hulkoti Co-op. Education Society (1921), J.G. Co-operative Hospital at Ghataprabha (1951, Belgaum district) and Rural Electricity Society at Hukkeri of Belgaum district (1969) are some of the earliest special types of co-operatives in the State. The Hiranyakeshi Co-op. Sugar Factory of Sankeswar of Belgaum district founded in 1956 is considered as one of the best co-operative sugar factories in the State. (These are the few examples). Karnataka is one of the leading States in the country where the Urban Co-op. Bank movement has emerged strong. Karnataka ranked 3rd in the country next only to Gujarat and Maharashtra. Karnataka is the first State in the country to have the Federation of Urban banks (1965).
It is conspicuous that after the Reorganisation of the State, the orbit of the Co-operative movement has been expanded in all its spheres. Some of the apex institutions at the district and the State level have established their record growth vertically and horizontally. Increased financial participation in the form of share capital, subsidy, grants etc. by the Central and State Government, N.C.D.C. etc., have facilitated the increase in the number of co-operatives. Many of the major industries like spinning, cotton processing, textile, sugar, tiles, food processing etc., have been started in the State in the co-operative sector. During 1976-77, most of the economically non-viable, weak primary societies were amalgamated. This process of amalgamation on large scale, strengthened the base of primary societies and their number was reduced considerably.
Recognising the prominent position of the State in the co-operative sector, the Institute of Co-operative Management was founded in Bangalore (1962). In 1990, the National Agricultural and Rural Development Training Institute was founded at Bangalore to train the bank and co-operative sector officials.
The district-wise number of co-operatives (including under liquidation) in the State as on 31-3-2003 was as follows : Bangalore (Circle I) 530 & (Circle II) 1,463, Bangalore Rural 1,659, Kolar 2,295, Tumkur 1,362, Chitradurga 689, Shimoga 975, Belgaum 3,861, Dharwad 1,012, Bijapur 973, Uttara Kannada 852, Mysore 1,581, Mandya 1,534, Hassan 1,191, Chikmagalur 508, Kodagu 335, Dakshina Kannada 727, Gulbarga 1,851, Raichur 741, Bellary 1,065, Bidar 820, Davanagere 1,242, Bagalkot 1,196, Haveri 916, Gadag 895, Chamarajnagar 596, Udupi 511 and Koppal 528.
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