Unit 5: Industrial and Processing Co-operatives

Industrial & Processing Co-operatives

Industrial and Processing Co-operatives are member-owned organisations formed by workers, artisans, farmers, producers, and small entrepreneurs to:

• Improve income
• Provide raw materials and market linkages
• Ensure fair wages
• Provide training and technology
• Remove exploitation by middlemen

They play a big role in employment generation, especially in rural and semi-urban areas.

Chikankari / Handloom Weaver Co-operatives

A. Chikankari Co-operatives (Lucknow-based)

Chikankari is a famous embroidery craft of Uttar Pradesh.

Objectives

• Protect artisans from middlemen
• Ensure fair wages
• Provide raw materials (thread, cloth) cheaply
• Offer marketing support

Structure

• Primary Co-op Societies at village/town level
• District Co-op Federation
• State Handicraft Apex Co-op (e.g., UPICA)

Functions

• Provide design training & modern stitching skills
• Bulk purchase of cloth, threads, needles
• Quality control and branding
• Participation in national + international exhibitions
• Export facilitation

Real-Life Example

SEWA Lucknow – famous cooperative working for women Chikan artisans.

Handloom Weaver Co-operatives

Handloom sector = 2nd largest employment provider after agriculture.

Objectives

• Provide yarn at subsidised prices
• Offer modern looms and training
• Support marketing via exhibitions, e-commerce, government stores (e.g., Handloom House)

Structure

• Primary Weavers’ Societies
• District Handloom Societies
• State Federations (e.g., APCO, COOPTEX)

Functions

• Yarn supply, credit support
• Design development
• Buy-back of finished products
• Promotion of GI-tagged products like Banarasi, Kanchipuram, Pochampally sarees

Sugar Factory Co-operatives

Location

Popular in Maharashtra, Karnataka, Uttar Pradesh, Gujarat.

Objective

• Ensure cane farmers get a fair share of sugar profits
• Avoid monopoly of private sugar mills

Structure

• Farmers own shares
• Elected management committee
• Government representatives

Functions

• Cane procurement at fair prices
• Running sugar mills
• Supply fertilisers, seeds, tractors to farmers
• Provide canals, irrigation, schools, hospitals in villages

Example - Warana Co-operative Sugar Factory, Maharashtra – model co-operative town.

Tea Producers Co-operatives

Popular in: Assam, West Bengal, Kerala, Tamil Nadu.

Objective

• Support small tea growers
• Reduce dependence on large tea companies

Functions

• Leaf collection and grading
• Processing in co-op owned mini-tea factories
• Packaging and marketing (domestic & international)
• Credit, training, quality improvement

Example - Small Tea Growers’ Co-operative Society (STGCS) in Assam.

Labour Contract Co-operatives

These co-ops consist of labourers who jointly take construction or service contracts.

Objective

• Prevent exploitation by contractors
• Provide stable employment
• Distribute profits fairly among workers

Functions

• Take contracts for construction, loading-unloading, tenders, municipal works
• Provide safety tools and training
• Ensure timely payment to members

Example - Many states like Kerala, Maharashtra have registered labour contract societies in the PWD sector.

Co-operative Printing Press

These are co-ops owned by printing workers.

Functions

• Printing of textbooks, government documents, notices
• Training in modern printing technology
• Publishing and digital printing services
• Fair wages and profit sharing with members

Real-Life Usage

Many state textbook boards (like Maharashtra, Kerala) outsource work to such co-operative presses.

Co-operative Hospitals

These hospitals are owned by health professionals + community members.

Objectives

• Affordable healthcare
• Quality treatment in rural/semi-urban areas

Functions

• Provide medical services, diagnostics, pharmacy
• Telemedicine and mobile clinics
• Health insurance for members
• Community outreach programs

Example - NIMS Co-operative Hospital, Kerala – a successful model.

Co-operative Publishers and Colleges

Co-operative Publishers

Owned by writers, teachers, and employees.

Functions:

• Publish textbooks, academic books, local literature
• Offer fair payments to authors
• Affordable book pricing

Co-operative Colleges

Owned and managed by community members, teachers, and students.

Functions:

• Provide education at low fees
• Promote skill development and vocational training
• Transparent governance

States Known: Kerala, Maharashtra.

Fisheries Co-operatives

These co-operatives support fishermen in coastal and river areas.

Objectives

• Provide boats, nets, cold storage, ice plants
• Ensure fair market prices
• Reduce exploitation by middlemen

Functions

• Fish collection, grading, processing
• Cold chain facilities
• Access to subsidies and insurance
• Training in modern fishing methods

Example - Kerala State Fishermen Development Co-operative Federation (Matsyafed).

Forest Produce Co-operatives – LAMPS

LAMPS = Large-sized Adivasi Multi-Purpose Societies

Areas: Jharkhand, Odisha, MP, Chhattisgarh – tribal regions.

Purpose - To protect tribal people from exploitation by traders.

Functions

Collect and sell Minor Forest Produce (MFP):

• Tendu leaves
• Mahua
• Lac
• Honey
• Bamboo
• Provide seeds, tools, food grains
• Offer credit and social welfare activities
• Promote forest-based processing units

New Generation Co-operatives (NGCs)

These are modern, business-driven co-ops with professional management.

Features

• Members invest capital and get dividend
• Professional managers run operations
• Use technology, e-commerce, and branding
• Value chain integration (from production → processing → marketing)

Examples

• Dairy NGCs selling branded milk, cheese, paneer
• Organic farmer co-ops selling through online platforms
• Women-led self-help group federations doing food processing

Summary Table for Revision

Type of Co-op	Key Purpose	Example
Chikankari	Support artisans, marketing	SEWA Lucknow
Handloom	Yarn supply, design support	APCO, COOPTEX
Sugar	Cane procurement, milling	Warana Co-op
Tea	Support small tea growers	Assam STGCS
Labour Contract	Fair wages, share profits	Kerala PWD Co-ops
Printing Press	Printing & publishing	State Textbook Boards
Hospitals	Affordable healthcare	NIMS Co-op
Publishers/Colleges	Books, education	Kerala Co-op Colleges
Fisheries	Cold storage, processing	Matsyafed
LAMPS	Tribal welfare, forest produce	Odisha, MP, Jhar
NGCs	Modern, tech-based co-ops	Organic farmer co-ops