Power of Cooperative Farming in Rewriting the Story of Indian Agriculture

Table of Content

• What is Cooperative farming?
• Key Features and Advantages of Cooperative Farming
  • Increasing Economies of Scale
  • No Subdivision and Fragmentation
  • Boosting Market Supplies and Bargaining Power
  • Trusted Financial Support
  • Social Equity and vanishing Poverty
• Different Types of Cooperative Farming
• Difference between Cooperative Farming & Contract Farming
• Conclusion

What is Cooperative Farming?

Cooperative farming is a voluntary scheme where a group of farmers collectively work together using shared land, labour, and funds to farm. Coming together, they create a union that lets them work on the farm as one unit.

You may think, "What makes this type of farming unique? In such farming, the farmer is involved in a cooperative system, but this way, he is not losing his identity and right to the property, as he has the land to call his own. The management of the farm is done in a democratic manner, as the management is chosen by the members themselves. Also, profit sharing is done with two aspects: the contribution of land and labour.

Key Features and Advantages of Cooperative Farming

Nowadays, cooperative farming has gained popularity in India because it helps in overcoming the challenges faced by small-scale farmers.

Increasing Economies of Scale

When the small farms join, one large area is formed for growing crops. This way, it helps in buying items like better seeds, fertilizers, and agricultural tools in bulk as a group, lowering the cost per acre. It also means they can use big machines like tractors and harvesters that would be too expensive for one small farmer to buy alone.

No Subdivision and Fragmentation

As per the law of inheritance, Indian farms have become smaller and more divided over time. Through cooperative farming, this problem is fixed by removing the boundaries between plots, making it easier to manage the land in an organized and productive way.

Boosting Market Supplies and Bargaining Power

Usually, single small farmers don't have enough crops to bargain with large buyers or pay for their shipment to faraway markets. But when farmers work as a union, they combine their harvests for a larger amount. By this process, farmers can store their crops properly, send large shipments to reach a broader market, and get higher prices, avoiding the middlemen.

Trusted Financial Support

Mostly, banks don't provide credit to low-income farmers who work individually. However, when such farmers form a registered cooperative, they have more power to negotiate, as they have access to large credit amounts to develop their required facilities.

Social Equity and vanishing Poverty

These cooperatives run on fairness and equal rights. They help create jobs in rural areas and make sure people have enough food at home. They also support groups that are often left out and help women farmers by making sure they have a say in important decisions.

Different Types of Cooperative Farming

Not every group of farmers wants to work together in the same way. Cooperative farming in India is divided into four main types, depending on how land is owned and how farming is managed. This step is introduced for groups of farmers who don’t want to be together in the same way.

Difference between Cooperative Farming & Contract Farming

These farming types are designed to help farmers with the challenges they face in modern farming, but they are based on very different ideas. It is important to understand the main differences between cooperative farming and contract farming.

• Ownership and Control: In cooperative farming, farmers oversee their land rights and run everything together through equal decisions. Whereas, in contract farming, a company or agribusiness makes a legal deal with the farmer and sets the terms, quality rules, and prices beforehand.
• Risk and Motives: In Cooperative farming, the aim is to help each other with risks and improve the community. While contract farming is mainly about business agreements set before harvesting, it can be risky for small farmers who do not meet the company’s strict quality standards.
• Operating Independence: In cooperative farming, the members pick their leaders and can adjust their approach as needed, while in contract farming, farmers must follow a strict set of rules for what to use and how to grow their crops.

Conclusion

With India’s scaling economic growth, the sustainable development of its agriculture has become an absolute necessity. The traditional approach towards agricultural production is characterized by the division of land owned by individual owners, which poses challenges in changing times.

In the era of globalization, cooperative agriculture has become a sustainable and decent solution. By converting isolated land into a consistent source of production, cooperative agriculture saves the interests of the underprivileged while serving the needs of domestic and international consumers.