Consumer Cooperative Movement: in India
Consumer Cooperative Movement: in India
Consumer Cooperative Movement: in India
2.1 Introduction
Over the years, England and Sweden which are the forerunners of the
consumer cooperative movement in the world has proved that consumers
.
cooperatives can serve as effective guardian and spokesman of the consumers.
Some of the contributory factors for the successful working of consumer
I
Cole, G.D.H. (1944) A Century ~f~('ooprrotion,
George Allen and Unwin Limited for the
Cooperative Union Limited. Oxford. p I
cooperatives were identified as the involvement of responsive members with a
spirit of cooperation, uniformity of needs and preferences of consumers due to
better standard of Iivmg and the positive attitude of the governments with a
well-desrgned and supportive legal framework for the development of people's
organisations like consumer cooperatives.
2
Pradit Machima (1994) "Consumer Cooperative Movements in Asia", I C A N C T Sub-
regional Seminar on ('onslrmer Cooperative. Bombay 24' April to 3rdMay 1994, p.25-26.
where consumer cooperatives are not in existence but are organized or
operated as a unit or section of agricultural cooperatives.
5. Village and rural cooperatives: The ultimate objective of village and rural
cooperative is to supply essential articles to the rural people and thus serve
the rural areas. Among the Asian countries, it is widely spread and popular
only in lndia.
In lndia the erstwhile Madras state was the pioneer in the field of
cooperative movement. The first consumer cooperative society was set up in
Madras, namely 'The Triplicane Urban Cooperative Society Limited' in 1904
with the prime aim of supplying necessities of life to its members and it has
grown up as one of the largest consumer cooperative societies in lndia'. With
the passing of Cooperative Credit Societies Act, 1904, the Madras state gave
registration to the Triplicane Urban Cooperative Society followed by the
registration to the Coimbatore Cooperative Society in 1906. However the
consumer cooperatives got legal recognition only after the enactment of the
Cooperative Societies Act of 19 12, which repealed the Cooperative Credit
Societies Act of 1904. Further, the Cooperative Societies Act, 1912 abolished
the dishnct~onbetween the rural and urban societies and in its place a new basis
for classificahon, namely limited and unlimited liability societies were
introduced.
1927 1929
Memb
ership ership ershlp ership
Assam 2283 20 2475
-----.
Contd ...
5
Kulkami K.R (1962). Theory and Procrice qf Couperotion in India and Abroad. Vol. IV,
Cooperators' Book Depot. Dadar. Bombay. P.38
!
j Number of Societies with Membership
1 1921
-.L-?---
Bihar &
Orisssa
/ 1 23 3066 23 / / 1 / / /
4399 I7 3032 18 2831
c'p(centra',
Province)
30 1 3 3 5 7 1 9
-
11431 1 10 1 1 8 1 4 1 ll 118481
As seen from Table 2.1 this era of growth in the store-movement was,
only a temporary phase of expans~onas it slackened subsequently. The people's
patronage to consumers cooperative stores were ceased as soon as the control of
commod~tiesof every day use like rice, kerosene and sugar were lifted.
With the outbreak of World War 11, there was shortage of essential goods
in the country. As the private traders indulged in profiteering and black
marketing along with manipulations in prices, the government had to control the
prices as well as the distribution of essential commodities. In order to check the
nefarious activities of private traders, the govenunent identified the consumers'
cooperatives as efficient and reliable means for the distribution of scarce
essential commodities.
After the outbreak of World War 11, the consumer cooperative movement
made sign~ficantprogress. During 1943 rationing was introduced in many
provinces of lndia. The provincial govemments issued instructions to Collectors
of districts to encourage the consumers' cooperative stores by grant of necessary
licenses and quotas. The progress made by the consumers' cooperative stores in
lndia during the World War 11 and post- war period is presented in Table 2.2
Table 2.2
Number of Primary Consumers' Cooperative Stores and Membership in
Primary Consumers' Stores in lndia During World War 11 (1940 to 1945)
States
g ii s :
t; ,
% : - ! %
g
o
I
i
.
2
w
C
a w
2
~1
a
.-
1 I P L
~ o
Z
Bihar
icentra' 1
Province 30 1812i1 29 1 I 9 3 3 30 122291 63 NA / 1131 N A 1281 ( NA
NA 33 NA 33 3849 NA NA
Items
-
No. of Soc~eties
--
Thereafter the states began to lift the controls gradually and by the end of
195 1-52, the removal of controls had put an end to the privileged position which
2.4 Progress of Consumer Cooperative Movement in lndia under the Five Year
Plans
consumer cooperative movement in lndia during the World War period and on
the eve of independence. Since independence the govenunent of lndia
formulated strategies for speedy economic progress. The methodology for this
speedy development was the launching of Five Year Plans. Five Year Plans
strategies touched up on all sectors where cooperatives is also not an exemption.
The First Five Year Plan document pointed out that in urban areas special
significance must be attached to consumer cooperatives. But no targets were
laid down and no specific financial outlay was envisaged in the First and
Second Five Year Plans for this purpose. The reversion to decontrol and the
consequent functioning of free economy has also adversely affected the
consumer cooperative movement in India. As a result, the number of primary
consumer cooperative stores fell from 9757 in 1950-51 to 7050 in 1960-61, and
the membership from 18.45 lakh to 13.41 lakh, both recording a fall of 27 per
cent. The total sales made by these stores also declined from Rs.81.87 crore in
1950-5 1 to Rs.44.23 crore in 1960-61, the rate of fall being 45 per cent6.
The devaluation of the lndian rupee by 36.5 per cent in June 1966 created
adverse psychological impact on the trade and the prices of all the goods started
rising indiscriminately. The government of lndia introduced an accelerated
7
Himachalam, D. (I99 I) < ) / ~ c ip.
t . ,18.
"ovemment of India (1968), Admmisrrotiv~.Kc:f&-rns Commission Report of' the Working
Grorrp on ('oopc.rotron. New Delhl. p. 127.
programme for strengthening consumers' cooperative movement in the country
by organising central stores in all the districts not covered during the Third Five
Year Plan penod. T h ~ sprogramme envisaged setting up of 101 new wholesale
stores and 2000 prlmary stores 01. branches, 50 departmental stores to cover all
important cities and towns with a population of about 2 lakhs, setting up of
consumer cooperative stores in universities and colleges, strengthening of
National and State Level Federations, building up of a system of
institutionallsed purchases, streamlining of supply arrangements and training of
supervisory staff and other personnel with the assistance of the govenunent.
(Himachalam, 1991)"
9
Himachalam, D. (1 99 1 ) op.crl, p. 19.
LO
Mathur B.S (1991) o l ) . c i ~p.323.
.
I1
Government of India ( 1973) Reporr (I/ /he Working Group on Coopernlion (F'ryh Five Yenr
Plnn), Nen. Delhi. p 10 1
Federation to procure supplies directly from manufacturers. The Central outlay
for the consumers' cooperatives during the Sixth Five Year Plan was Rs.56
crore. In order to support the consumers' cooperative movement, the
government of lndia entered into agreements with selected manufacturing
companies to make available 20 per cent of their manufactured articles through
the cooperative network.
during the year 1988-89. The average annual sales per primary consumer
cooperative store in the country increased from Rs.62,670 in 1960-61 to
Rs.3,84,880 in 1988-89 recording an increase of 5.14 times.
Table 2.4
Progress of Primary Consumer Cooperative Stores (1960-89) in lndia
Membership in '000 (Rs.in '000)
-- -.
At the end of ea
I
Descriptions
Number
Membership
Share capital
(Rs.)
Total sales (Rs.)
Stores in profit
(No)
Stores in loss
(No)
Fair price shops
in cooperative
sector(no.)
Source: National
cooperatives in lndia 1960-61 to 1988-89 (2"* Plan -71h Plan). Data
Series, New Delhi, p.58-65.
The profitability of priina~yconsumer cooperative stores in the country
increased during the period from 38.60 per cent in 1960-61 to 43.60 per cent in
1988-89. During the year 1988-89, total number of fair price shops in the
country stood at 3.53.798. As there were 83,544 fair price shops in the
cooperative sector, cooperative f a ~ price
r shops constituted 23.60 per cent of the
total fair price shops in the country. The serious attempts to strengthen the
network of consumer cooperatives under the Five Year Plans through the
Centrally Sponsored Schemes as a consequence of Chinese aggression have
contributed for these achievements.
Average
/ Maharashtra
I
2650 / Pondicheny 2: 1 1 Kerala 380 1
West Bengal 2605 Andarnan 39 Assam 422
Arunaclial 96
Pradesh
--
1 Tr~pura 111 1
I 1
Source: Nat~onal Cooperative Un~onof India, Analytical study of consumer
cooperatives rn lndia 1960-6 1 to 1988-89 (2" Plan - 7th Plan), Data
senes. p 3
Table 2.6
State-w~seDetails of Pnmary Consumers Cooperative Stores in lndia dunng the
per~od1960-6 1 to 3 988-89
(Number of Stores)
Figures in Actual
- - 7 - 1 7
70 130 92 96
Mizoram
--
Orissa
Rajasthan i 402 1 655 544 / 681 1 6'77 1 664 1 532 1 624 1 624 (
Tamil Nadu
Tripura
---4-~
5 9) i 1. M
I 9) 1
3 93 97 loo
Andamans
Delhi
---
-
t19
-
168
-
111111111
31
370
38
313
37 36
455 711
36
711
36
570
36 39
570
Lakshadeep
1
Pondicher~
Chand~garh I
Dadar 1 1 1 1 1 5 1 5 1 6 1 8 1 ; 1
4-
I
Goa
-4- I
Daman& DIU i
Total i70Wi - I L
39081 I5797 16701 17727 18542 21913 22647
State1U.T
Andhra Pradesh
Bihar
Gujarat
l~aryana
Himachal
Pradesh
Madhya
Pradesh
Mizoram
--
Contd
.
Sikkim
Tamil Nadu 1
0
---A-
/
1 5 7
1 77-78 W-85
14500
X5-X
2213
0
87-88 88-W
13000 14000
3-
~ri~ura 1240 71391 884" 7552 8822 10354 8849 11000 11812
, -
f-
Uttar ! 149126i 1145913 221398 365389 467395 394813 221398 394000 209378
Pradesh ,
I
1
-
I
I
Delhi /
158852 229000 96705 182000 182000
I -+- -.
I
Goa, Daman I 1 Ill95 l5121i 16813 25126 299451 15123 22000 25150
;
& Diu I
--- ..+- --
Lakshadccp i I 1025 12241 1846 22134 1025 48000 26343
.-A- ,
i
Pandicheri
Chadigarh
-+-
4 5 11474 i35(,uj 40109
195 6809
66342
7120
18400
6935
13569
195
19340
1000
19340
1000
! - -
Goa
---+- I -
i
-
Daman 11: 1 i 7901
I
Diu
+ -
Total ~1340707i2929987 5943357 3592725 6806027 7038616
~p
The Eighth Five Year Plan proposed to promote and strengthen consumer
cooperatives to supply public distribution items and to build up a strong
consumer protection movement both in the urban and rural areas. While the
earlier Five Year Plans aimed at consolidating the consumer cooperative
movement, the Eighth Plan emphasised the need to involve consumer
cooperatives in mamtaming the price line and providing quality products to the
consumers at reasonable rates. During this Plan period it was proposed to cover
10,000 Primary Agricultural Cooperative Societies (PACS), Large-sized Multi
Purpose Societies (LAMPS) and Farmers' Service Societies (FSS) to undertake
distribution of consumer articles in the rural areas and to achieve an estimated
retail rural sales of Rs.4,400 crore by the terminal year of the Eighth Plan
(1997).
Table 2.8 shows that there are fluctuations in the growth of primary
consumer cooperative societies during the period 89-90 to 98-99. In 91-92
substantial growth was achieved in the number of stores, recording an increase
of 17.27 per cent. But, the sales turnover during this period increased only by
11.89 per cent. This may be due to the shift in consumer preferences towards
private Waders and supermarkets as a consequence of globalisation,
liberalisation and privatisation. In the later years, the sales volume increased,
but it cannot be attributed to the rise in unit sales, unless we know the price
factor and the rate of' inflation.
Table 2.8
Details of primary consumer cooperative stores in lndia during
n~neteennineties
Year
I
I
Ilo. of Stores I Total sales
Iln thousand) / (Rs. ~n Million /
.~
--
~ p~~~
~~~~
~ ~
~~ ~~
~
-~~.
~
4 .-
-2
'' Goyal.
S K (1972). ('on.strmer ('oq,eroirve Movemen1 In Ind~ci. Mcnakshi Prakashan.
Merut. p 66
An All lndia Seminar on <:onsurners' Cooperation, convened by the All
lndia Cooperative Union (now National Cooperative Union of India) held at
Bombay m September 1960 recommended that wholesale societies may be
established in all the districts where there are about fifty retail primaries in order
to undertake the work of bulk purchases, manufacturing, processing, distribution
etc. The seminar also suggested that the district societies should also open
branches in those areas where there are no primary stores which may be
converted into primary stores later on.
Table 2.10
Progress of CentralIWholesale consumer cooperative stores in lndia during the
period 1960-6 1 to 1988-89
Total number of stores
Pradesh
Jamrnu &
9 9 9 9
Kashmir
Karnataka
Kerala II 12 II II
Contd .
I Madhya I
: Pradesh I
1 Maharashtra ! / / ) 1 1 1 1 I
--
I 33 40 68 83 I00 93 103 111
-4-
I
Meghalaya !
I Man~pur
M~zoram I 2
Puniab I6 15 16 16 16 16 16
I
I
1
I
a a s a n
Slkkim - PI 1 1-8 I9 1 2 ; 12: 12: 12: 12;
i~ri~ura 1 ~ 1 1 ' ~ 1
+ -~
Utter
9 41 52 54 57 60 60 60 60
Pradesh
W.Benga1 8 23 29 29 28 28 28 29 29
stores - ( I I I stores) followed by Bihar (92 stores) and Uttar Pradesh (60 stores).
No.of Whole
sale stores
635 , 756 666 676 , 696
++
Total sales 1 158 1 1228 / 1232 1247 1552 1632 1952 / 2086
C.----b+
Per cent of
profit making 1 37 45 46 48.5 44.3
stores
Source: National cooperative Union of India (2000), Vision 2005, Indian
Cooperative Movement: A Profile. seventh edition, New Delhi, p.21.
Within the period of eight years (1989-90 to 1996-97), the total sales of
whole stores in India has recorded an increase of 80.14 per cent. But the
percentage of profit making stores has declined from 47 per cent in 1989-90 to
37 per cent in 1992-93, later improved to 48.50 per cent in 1995-96 and by the
end of 1996-97, the number of profit rnaking wholesale stores declined to 44.30
per cent. The frequent fluctuations in the profitability of wholesale consumers
cooperative stores is due to frequent changes in the policy towards consumer
cooperatives and the resultant consequences.
2.7 State cooperative Consumer's Federation
From table 2.12 it is seen that at present there are 29 state level
federations in the country. This includes federations exclusively for the states
and a few federations for the ur~ion territories. Their membership position
which stood at 1578 in 1973-74 ~ncreasedby 10.73 times in 1999 and reached
17942. Similarly total sales also recorded an increase of 17.87 times over the
years.
Table 2.12
Progress of State Cooperative Consumers' Federations in India
(1973-74 to 1998-99)
(Amount Rs. lakh)
.-
Number 29 29 29
+-
Membership 1578
8 1.07
i-
These trends exhibit the public support and popularity enjoyed by the
State Cooperative Consumer Federations. The government participation which
stood at 71.93 per cent in 197:3-74 reached the maximum in 1988-89 (87.36)
and came down to 74.70 in 1994-95 and later improved to 81.07 in 1998-99.
2.8 The National Cooperative Consumers' Federation of lndia Limited (NCCF)
The NCCF. which was organised by the state level federations in 1965,
started functioning from January 1966. The National Cooperative Consumers'
Federation of lndia Limited (NCCF) the apex body of consumer cooperatives in
the country 1s govenied by the Multi-State Cooperative Societies Act, 1984. The
main objectives of the NCCF are to provide support to the member's in
particular and other consumer cooperatives in general for distribution of
consumer goods of daily use besides rendering technical guidance and
assistance for improving and increasing their operational and managerial
efficiency. The commercial operations of the NCCF are undertaken through its
headquarters at New Delhi and 32 brancheslsub branches/processing units
(1999) located in different parts of' the country
1988-89
199 1-92- 1 W: 1
Source: (1) Natioanl Cooperative Union of lndia, Analytical study of consumers
cooperatives in lndia 2"d plan-7"' Plan, Data Series, p. 183.
The NCCF has achieved a record sales of Rs.403.79 crore and earned a
net profit of Rs.4.44 crore during the year 2000-2001 as compared to the sales
turnover of Rs.3 12.19 crore and net profit of Rs.2.78 crore achieved during the
year 1999-2000.'" The increased sales turnover during 2000-2001 resulted in a
gross margin of Rs. 16.17 crore as against Rs. 13.20 crore during the previous
year. The total expenditure of the Federation during 2000-2001 was of the order
of Rs.12.53 crore as compared to Rs. 12.59 crore in the previous year. The
reduction in expenditure was on account of the savings in interest cost due to
settlement of loans and consequential reduction in the loan liability,
l3 Ram Iqbal Singh (2000) '.Welcon~e Address on the Inaugural function of the 34' Annual
Meeting of the gcneral body of NCCF"'. lndinn Consitmer Cooperoror, October- December
2000. P.22.
I4
NCCF (200 1 ) Annirrrl /{epor/ (!fNrirrr~nol('oo/)erorive ('onsirmers ' I~tderorionoj'Indin,fi~r
/he Annirrrl General Hod),Meeting hcld on 30-10-200 1
and exercise note books through the network of 4,50,000ration shops, retail
outlets of cooperatives and Civil Supplies Corporations all over the counhy for
the benefit of people living below the poverty line. The NCCF has been
nominated as a nodal agency to execute the schemeI5.
As we did in the case of national scenario, at the state level also the
discussion on progress of consuirier cooperative movement should start with
primary level societies. But availability of basic information relating to primary
societies was a very difficult task and hence the discussion is arranged at two
levels based on data availability. In the first phase, we have data from 1956 to
1977 but not at regular intervals. The second phase consists of data from 1982-
83 to 1994-95 at regular intervals. Secondary data on consumer cooperatives in
Kerala since 1994-95 are not yet available (2001) due to various reasons. Little
scattered information was available for 1998 from the joint statement issued by
the Department of' Cooperativt:~, Government of Kerala and the State
Cooperative Un~on,Kerala.
Paid-up 1
share 5.71 7.05 19.65 33.01 54.37
capital (Rs. in;
lakhs) !
-+-
N.A 94.55 N. A
(Rs. lakh)
Table 2.14 shows that there was a decline in the number of primary
consumer cooperative stores in 1960 mainly due to liquidation. However, the
sales turnover of the primary consumer cooperative stores in the state recorded
The progress made by the primary consunler cooperative stores from the
years 1982-83 to 1987-88 is presented in Table 2.15.
Table 2.15
Progress of primary cooperative stores in Kerala (1982-83 to 1987-88)
No. of Branches
No of profit earning
stores
No of societies
Table 2.15 shows that except in the year 1985-86 there was consistent
increase in the number of primary consumer cooperative stores. In 1983-84
there was an increase in the number of members over the previous year, but the
succeeding two years has recorded a decline in membership. The average
membersh~pin a prnnary store which stood at 484 members in 1982-83 declined
to 458 members in 1987-88. The. average paid up capital of the primary stores
increased from Rs.0.28 lakh in 1982-83 to Rs.0.38 lakh in the year 1987-88.
The sales turnover dur~ngthe period 1982-83 to 1987-88 increased by 55.89 per
cent. The cost of management has also recorded an increase of 74.88 per cent
over the period of six years. Regarding profitability, 37.32 per cent of the
primary stores in Kerala had generated profit in 1982-83, but in 1987-88 the
number of profit makmg societie!~declined to 32 per cent. On the other hand
the number of dormant societies has increased from 19.37 per cent to 32.25 per
cent.
During the year 1992-93, there was a significant expansion in the primary stores
in Kerala. As conipared to 1991-92 there was more than 100 per cent increase
in the number of primary stores in ldukki, Thrissur, Kozhikode, K a ~ u and
r
Kasargode districts during the year 1992-93. One of the probable reasons for
this trend may be the political tactics to capture the governance of cooperative
socie~teisas a consequence of polltical changes at the state level administration.
Table 2.16
Progress in number of Primary Consumers' Cooperative Stores in Kerala
( 1988-89 to 1994-95)
Name of
D~strict
uram
---
Th~ruvananthap 75 I
I
I
1990-9 1 199 1-92 1992-93 1993-94 1994-95
Since 1993, Kannur district tops in the list of primary consumers stores
having 171 stores accounting for 17.43 per cent of the total primala, stores
during 1994-95, followed by Thiruvananthapuram district with 140 stores which
accounts for 14.27 per cent of the total primary stores in 1995. Wayanad district
with 1.83 per cent and Pathanan~thittadistrict with 2.34 per cent of the total
primary stores had the lowest pos~tionin 1995
Table 2.17
-
Primary Consumer Cooperative Stores in Kerala Progress in Membership
( 1988-89 to 1994-95)
-- I (Membership in '000)
- / - n I
I
Name of
D~shict
-+--
--
Kottayam 19.46 9.19
-- C--
-
Ernakulam 29.03 29.94
Kozhikode
-1--
1 15.40 16.94 I 16.63 16.49 18.20 19.38 19.48
Wayanad ! 3.00 3 . 303 3.66 3.71 4.13 4.23
-c--
Kannur 1 42.60 44.58 45.96 46.89 52.15 52.17 54.01
t-- -
Kasargode i 8.91 9.06 1 9.04 9.34 9.44 10.54 10.23
A- -
Total 1 213.43 205.54 21 1.39 209.21 242.82 255.66 268.63
Source: ~ o v e r n r n e n t o f~ e r a l Hand
c Book on Cooperative Movement in
Kerala, Registrar of Cooperative Societies, Kerala. (Various issues)
As evident from table 2.17, the membership in primary consumers'
cooperative societies increased from 2.13 lakh in 1988-89 to 2.68 lakh in 1994-
95. However, the average number of membership in primary stores in Kerala
declined from 464 in 1988-89 to 273 in 1994-95. From 1988-89 to 1994-95
Kerala. The district wise analysis of total paid up capital reveals that Ernakulam
district had the maximum paid up capital in primary consumer cooperative
stores in Kerala. The average paid up capital in Ernakulam district was Rs. 1.21
lakh in 1995 as against the state average of Rs.0.25 lakh. The ldukki district
with 83 prlmary stores in 1995 had the lowest average paid up share capital of
Rs.0.06 lakh, which was Rs.0.09 lakh in 1989.
Table 2.18
Total pa~dup cap~talof prtmary consumer cooperative stores in Kerala
( 1988-89 to 1994-95)
--- (Rs. lakh)
Name of
District
i8
1 89
9 9 0 9 - 1992- 1993- 1994-
91 92 93 94 95
::r]
! / / /
-+--
Thiruvananthag I
warn
' / I
I
1
17.54 17.61 1 8 . 8 8 19.07 23.57 25.10 29.36
I
Kollam 1 10.03 10.16 / 11.41 ' 10.28 13.02 15.18 20.23 '
Kottayam
1-
I -
1 -
1 I I 9 0 10.79 1 11.57 13.94 13.84 14.44 14.33
ldukki
_____t__
2.90 2 . 9 2 i 3.11 1 2 . 9 3 1 5 . 2 1 1 5 . 2 8 1 4 . 6 0 1
1
1 ::ti
Ernakulam 4072 : ; 4 53.50 58.95 58.01
Thrissur
----- 10.23 1 8.97 10.30 10.04 10.04 14.44
Total 1
181.98 214.49 234.50 248.86
Source: on cooperative Movement in Kerala,
Registrar of Cooperative Societies, Kerala. (Various issues)
Thiruvanantha-
878.36 249.98 216.09 353.13
puram
C--
Kollam 289.47 279.87 356.67 458.26
Kottayam
Kozhikode
Wayanad
Kannur
+-
Total
I
Source: Government of Kerala, Handbook on Cooperative Movement in Kerala,
Registrar of Cooperative Societies, Thiruvananthapuram, (various
issues).
The profitab~lityof the primary consumers' cooperative societies in each
district is available from Table 2.20.
Table 2.20
The percentage share of profit niaking primary consumer cooperative stores
(1988-89 to 1994-95)
ri:~:anth{~~+~
puram 28.95 23.08 12.60 17.69 32.86
- -
Kollam / 12 50 20 00 12.73 14.55 9.62 5.56 30.63
Alappuzha
1--
Kottayaln 1
4---
10 q !
--
22.58 ~ 12.90 3.03 11.43 8.82
Palakkad
I
354s
--I-
1 29.03 j 25.81 1 15.15 1 17.50 1 9.09 1 18.87 1
Kozhikode
Wayanad 27 27 1 33 33 40.00
I
25.00 35.29 16.67
process. The sales turnover achieved by the primary stores rose to Rs.285.09
crore in 1998. recording an increase of 199.12 per cent as compared to 1995.
The number of profit making stores as a percentage of total number of primary
consumer's cooperative stores reduced from 25.79 per cent in 1995 to 10.38 per
cent in 1998. The fall in the nu~nberof profit making societies even after a
notable increase in the sales tunlover may be due to the increase in
Along with primary societies, district wholesale stores were also started
in Kerala. In the earlier years. they had effective linkages with the primary
societies but later they became exclusive stores even doing retail business
through their various branches.
Rs. lakh)
Rs. lakh)
Share capital by
Amount of
No, of loss 1, i
,(, II II II 13 II 10 10 10
making stores I
--
Amount 7 188.92 485.48 354.62 784.31 330.10 234.77 132.21
(Rs.lakh)
. ---i
No.of socict~cs 1
0 0 2 I I 1
i
or loss I
wholesale stores was maximum during the year 1987-88 as the average number
towards the share capital of the stores have recorded continued growth. The
average paid up share capital of a wholesale store increased from Rs. 14.82 lakh
in 1985-86 to Rs.20.31 lakh in 1989-90 and to Rs.27.84 lakh in 1994-95. The
percentage of the share capital cor~tributionby the govenunent towards the total
paid up capital of the wholesale stores increased from 88.74 per cent in 1985-86
to 90.54 per cent in 1990-91, but later declined to 83.89 per cent in 1994-95.
The participation by the government in the total paid up share capital of the
wholesale stores is still strong in Kerala compared to the national average of
14.30 per cent (Herath 1999)".
In
Herath W.U.(1999) Hccent 7'rend.s c!f uon.s,rmer C'oopernrion in Asin and the I1noijic_
ICAROAP. Nc\v Dclhi P 63.
not a s~nglestore could make profit in 1985-86 and 1987-88. This may be due
to the mismatch between sales turnover and establishment cost. Since 1992-93,
three stores were able to maintair~profits, but the maximum average profit per
store was only a nominal amount of Rs. 1.35 lakh. The number of loss making
stores and the ~nc~dence
of loss per store is high as compared to the profit
making wholesale stores in Kerala The number of loss making stores varied in
between 10 and 13 during the period of study. The average amount of loss in a
wholesale store was maximum during the year 1991-92.
Table 2.24
Progress of Kerala State Cooperative Consumers' Federation Limited
1'374-1989)
Part~culars
Paid-uo share caoital
State government's contribution1 6.50
Itowards the share ca~ltal
1 1 1
124.80 125.96 172.40
60.36 61.52 107.85 1
Working capital
Sales turnover
Net profitfloss
Source: (1) National Cooperative Union of India, Analytical Study of
Consumers' Cooperative in India 1960-61 to 1988-89, Data Series,
New Delhi, p. 177.182.
(2) Government of Kerala, Handbook on Cooperative Movement in
Kerala, Registrar of Cooperative Societies, (various issues).
The paid-up share capital of Kerala State Cooperative Consumers'
Federation ~ncreasedby 19.13 t~lnesduring the period 1974-1989. The state
government's contribution to the share capital was 72.14 per cent in 1974,
which later declined to 48.37 per cent in 1981 but further improved to 62.56 per
cent in 1989. Though there was a decline in the share of the state government in
the paid-up capital of Consumerfed, the contribution by the govenunent to the
cent over the seven year period from 1974. In 1985 and 1989 the sales turnover
recorded a fall compared to the sales turnover made in 198 1.
Later developments are ava~~lable from Table 2.25.
Table 2.25
Average monthly sales of Consumerfed during the period 1990-91 to 1997-98
(Rs. Lakh)
1 1 i I Growth rate in I
maximum growth rate of 149.35 per cent. The gross profit of Consumerfed has
improved from Rs.0.91 crore in 1990-9 1 to Rs.4.47 crore in 1997-98, recording
(Rs. lakh)
1 Year
Net profit margin
1 996-97
1997-98
455
14.43
1 2907.00
7248.78
1
0.20
0.16
The trends reveal that the incidence of net loss as a percentage of sales
was maximum during the year 1990-91, being 1.06 per cent of net sales. The
Consumerfed continued to incur net loss during the two subsequent years and
also in 1995-96. These facts reassure our earlier claim that the rate of profit of
the Consumerfed is gradually declining as in the case of primary stores due to a
fall in the rate of sales turnover followed by an escalating rate of establishment
cost.