Problems of Co-operatives in Maharashtra
Lack of co-ordination
Another point may be made about institution building. This is the need for co-operative banks and commercial banks, especially at the lower levels, to share their experience and work together in matters such as formulation of schemes, recoveries and co-ordination of activities. Such an attitude is absent to-day.
Political & Government Interference
Though co-operative movement is supposed to be voluntary and free from Government and political interference. Political and Government interference has become the main feature of the movement is itself endangered. It is a common experience that the Elections of co-operative organizations are postponed under one excuse or the other to suit the convenience of the ruling party. This is certainly applicable to the employees co-operative Credit Societies.
Political interference in co-operatives has smiles and tears. The political intervention in cooperatives has today evolved co-operatives as instruments of political leadership and their approach to the problems of co-operatives is more political rather than social or economic cooperatives have turned to be pocket constituency of an influential family/group.
Dependence on Government
The inadequacy of capital and various other limitations make cooperative societies dependant on the government for support and patronage in terms of grants, loans subsidies, etc. Due to this, the governments sometimes directly interfere in the management of the society and also audit their annual accounts.
Lack of Government Support
Usually the government supports these organizations in the form of training and development and conducts many programmers. But sufficient amount of subsidy or any special schemes are not designed these Women cooperatives are also treated like the general co-operatives.
Limited Capital
The amount of capital that a cooperative society can raise from its member is very limited because the membership is generally confined to a particular section of the society. Again due to low rate of return the members do not invest more capital. Government’s assistance is often inadequate for most of the cooperative societies.
Problems in Management
Generally it is seen that co-operative societies do not function efficiently due to lack of managerial talent. The members or their elected Representatives are not experienced enough to manage the society. Again, because of limited capital they are not able to get the benefits of professional management.
Uneven Growth
A somewhat unhappy feature of the Employees Co-operative credit societies movement it its uneven geographical spread in the country. Though some historical and social factors are responsible for this, adequate corrective steps have not been taken to rectify this position by the concerned state Governments.
Lack of managerial Expertise
Co-operatives are mainly business and economic organizations and officers with economic and business background alone can manage co-operatives must understand the basic principles of co-operative organizations and problems of human relationship. To appoint officers of their choice in order to have political control of these organization.
Lack of Professionalism
Professionalization of management is again an area where the co-operatives have failed to make any significant progress. It hardly needs to be emphasized that with the expansion and diversification of the co-operative movement, skilled management has assumed special significance and co-operative can no longer afford to ignore the importance of the techniques of modern management and they need to take all possible measures to ensure maximum business efficiency.
Increasing Over-dues
The most important defect about these of the Employees co-operatives credits societies is the rising amount of over-dues. These societies are not taking adequate steps to realize these over dues. Heavy over-dues at the level of the societies have impaired their capacity to borrow from the higher financing agencies.
Defects in Investment Policy
The investment policy of the Employees co-operatives Credit Societies has also come to be criticized in well-informed quarters. It has always been emphasized from time to time that all funds of co-operative institutions should be kept within the movement, and investment in commercial banks be reduced to the minimum possible.
Causes of slow progress
Despite rapid grown the overall progress of cooperative movement during 100 years of its existence is not very impressive. It is therefore necessary to know the causes of poor performance of the movement and on that basis take such steps as would promote a faster growth of cooperative in India.
Lack of Trained Personnel
In spite of the joint efforts of National co-operative Union and state co-operative Federation there is lack of trained personnel which is one of the important reason for slow growth. This reason is because of lack of motivation and us satisfactory work environment.
Problem of Non Recovery
Many of the members who avail the loan fail to repay the installments in time because of many socio economic reasons of the family. This creates the problem of bad debt.
Lack of Professionalism in Management
In the new era, co-operatives are going to face growing competition from Domestic and foreign companies, particularly in the agri-business sector. The Competition poses a major threat to co-operatives that are used to thriving on Government-conferred privileges including monopolistic status and huge grants and subsidies.
Problem of Loan recovery
As the directors of the co-operative institution have allocated the loans to the intimate relatives, such loans have not been recovered with time. Therefore the financial conditions of such institutions have been worsened.
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