The Five Year Plan has given an important place to the co operative movement, as a major form of organisation in many branches of economic activity. The main schemes of co operative development in the Five Year Plans. Therefore relate to the rebuilding and strengthening of the co operative credit structure in regard to resources personal and procedures.
Greater emphasis has been placed on consolidation, eliminating the existing weakness and working for the creation of a viable co operative credit structure here, we are discussing the progress made in this regard under the different Five Year Plans.
1) First Five Year Plan:
In the First Five Year Plan, for achieving the goal of co operative socialism, the Planning Commission laid emphasis on co ordination between village Panchayats and co operative societies, multipurpose societies, co operative farming and industrial co operative societies.
The Reserve Bank of India set up National Agricultural Credit, long term fund and national agricultural credit stabilisation fund. The central and state Warehousing corporations were set up and the state bank of India came into existence.
2) Second five year plan:
During this plan period, the co operative movement was no more confined to credit societies alone, but it was widely extended to marketing ware housing and buffer stocks etc, in 1959 a conference, of the Ministers for co operation in different states was held, which resulted into the appointment of B.L.Mehta Committee. The recommendations of this committee guided the Government of India policy on co operation.
3) Third five year plan:
The target was to raise the number of co operative agricultural credit societies from 2.1 lakhs to 2.3 lakhs so as to bring 100% villages under the sphere of this movement. A National Co-operative Development corporation was set up during this plan, which entrusted with the task to supervise the Government loans and subsidies given to the co–operative societies. The success achieved under this plan can be judged from the fact that about 25 crores people came under the sphere of this movement.
After the Third Five Year Plan, co –operative Movement made a headway under the Annual Plans(1966-67), (1967-68).
There has been a steady increase in the number of societies, their membership and their total working capital. The structure of co-operative organisation has been progressively perfected with higher agencies for finance and supervision. But what it has achieved. Has co operation in India like that in Denmark and Ireland, gal vanished the economic regeneration of our peasantry? These are pertinent questions.
It much is admitted that though co-operative movement in India has not indeed succeeded in curing all the economic and social evils, yet it has no doubt, led to some beneficial results.
1) Spread of banking Habit:
With the progress of co-operation the banking habit is slowly but steadily developing in rural and urban areas.
2) Social benefit:
Co operation constitutes an admirable means of popular social improvement. It tends to check the petty quarrels and bitterness of village life and binds together men into friendly relationship.
3) Growth of self Reliance:
Co operative societies have created the spirit of self –reliance among the village poor. The individual farmer who is not able to start a new venture alone due to limited farmer who is not able to start a new venture alone due to limited resources; can have a chance to do the same through co-operation.
4) Welfare Activities:
Some societies have made liberal contribution towards various charitable and pubic purposes. It has also provided scholarships and aids for higher studies, research works. In this way the co-operative societies have promoted welfare activities.