Government of Tamil Nadu
Industrial Cooperatives

Etymologically cottage, tiny and small industries suffer from the disadvantage of economics of scale owing to small size, little finance, employment of small machines, high cost due to their inability in making bulk purchases etc.  As individual entitles, they cannot also effectively market products and handicaps can be overcome in a substantial way through a cooperative form of organization. The organization of individuals into societies and combination of societies into District and State Level lead to greater efficiency, innovation and larger turnover.

            In 1956, the administrative control over the industrial cooperatives was transferred from the Department of Cooperation to the Department of Industries and Commerce. A separate wing with technical and administrative staff is functioning in the Industries Department to give exclusive attention for the development of industrial cooperatives. Even though, in the beginning,  industrial cooperatives were mostly formed for the benefit of rural artisans, workers and labourer, eventually, service industrial cooperatives for the benefit of small entrepreneurs, producers and small farmers have also been started. 
 
Industrial Cooperatives have been organised with two objectives namely social and economic upliftment of the people  living below the poverty line. The most important Social objective is to safeguard the interest of the poorest sections against exploitative trends and to pave  way for diffusions and dispersal of wealth. The economic objective of these societies is to create employment opportunities for the people by increasing the production and
productivity of the units and to inculcate competitive capability and acceleration in the field  of  Trade and Industries

.           Industrial Cooperatives, a wing of the Department of Industries and Commerce, plays a vital role

  1. In providing gainful employment to the rural people in general

    and women in particular through production type Industrial 
    Co-operative Societies.

  1. In eliminating the exploitation of workers by middlemen through Labour Contract Cooperative Societies.

 

  1. In arranging for market for the products of rural artisans through Handicrafts Cooperative Societies.
  1. In providing infrastructural facilities including developed industrial sites or sheds to the small scale and tiny sector entrepreneurs through Cooperative Industrial Estates.

 

  1. In procuring green tea leaves through Cooperative Tea Factories and paying reasonable rate to the small tea growers of Nilgiris District.
  1. In helping the tapioca cultivators of Eight Districts in procuring the tapioca through member units of SAGOSERVE for processing of Starch and Sago and arrange for marketing the same.

 

  1. In sustaining the demand for made Tea in Nilgiris District and in order to ensure reasonable rate to the Small tea growers, tea is procured, blended and sold in the brand name of ‘Ooty Tea’ through P.D.S throughout Tamil  Nadu by the INDCOSERVE. 

 

  1. To stabilise the tea market and to eliminate the short comings in the conventional tea Auction system, a New Electronic Tea Auction Centre called ‘TEA SERVE’, the first of this kind in the world has been launched and it translates sale of tea of around      15 lakh Kgs. per month with perfect transparency to the        satisfaction of tea producers / sellers. 

            In nutshell Industrial Co-operative Societies ensure marketing of the finished products of the members, advantages of large scale economics to the members and mutual help among the members with cardinal principal of each for all and all for each.
GROWTH
            During 1980, there were 800 Industrial Co-operatives Societies and they had availed various assistance  from the Government such as price  and purchase preference, share participation, share capital loan, taxes exemption, Government guarantees, staff  at  Government cost, common label system etc. By availing these assistance, the Industrial                                Co-operatives were flourishing in earlier periods. However, the growth of Industrial Co-operatives started declining during the recent past. as may be seen from the following table :        

Year

No. of societies

No.of Workers

Sales Achievement
(Rs. in lakh)

Wages
(Rs. in lakh)

2007-08

360

102156

43286.61

2546.69

2008-09

367

101894

50472.21

2136.48

2009-10

362

98169

58853.04

2447.83

2010-11

354

105793

64823.39

3040.62

2011-12

351

101250

65206.66

2823.00

2012-13

350

64512

74899.44

2182.61

2013-14

322

67469

92377.84

2870.33

2014-15

314

67539

90079.46

3620.02

2015-16

314

70953

77403.76

4088.09

2016-17

311

71009

89800.73

4742.84

PERFORMANCE
            During the year 2016-17, there are 311 Industrial Co-operative Societies functioning and they have achieved sales turnover of Rs.89800.73 lakh as against the sales target of Rs.89848.00 lakhs. Whereas, the number of societies remains same during the year 2016-17 out of which 258 societies have worked on profit and 18 societies on loss. The remaining 28 societies are dormant and 7 societies are new.  The performance details of societies are given below:

Sl. No

Name of the Trade

No.of Societies

No. of Profit Making Societies

No. of Loss Making Societies

No. of Dormant Societies

No. of New Societies

1

Tea Service

2

2

0

0

0

2

Tea Factories

16

10

5

0

1

3

Sago

2

2

0

0

0

4

Match Service

6

2

2

1

1

5

Leather

2

1

1

0

0

6

Coal and Coke

1

1

0

0

0

7

Brick

6

3

1

2

0

8

Metal

8

7

1

0

0

9

Engineering

15

9

2

4

0

10

Polythene

9

6

0

3

0

11

Coir

65

64

1

0

0

12

Auto and Taxi

42

32

2

6

2

13

Tailoring

14

13

0

1

0

14

Indl. Coop. Estate

11

11

0

0

0

15

Printing

31

29

2

0

0

16

Labour Contract

36

29

0

5

2

17

Bank

 

1

1

0

0

0

18

Special

30

23

0

6

1

19

Handicrafts

14

13

1

0

0

Total

311

258

18

28

7

 

Similarly the details of societies District wise are given below :

 Sl. No

Name of the District

No. of Societies

Major Sector

1

Chennai

29

Banking

2

Kancheepuram

8

Venom Extracation

3

Tiruvallur

11

Tailoring

4

Vellore

12

Leather Finishing

5

Thiruvannamalai

2

Handicrafts

6

Cuddalore

13

Labour Contract

7

Villupuram

4

Coir

8

Thanjavur

16

Coir & Handicrafts

9

Nagapattinam

1

Brick

10

Thiruvarur

2

Polythene

11

Tiruchirapalli

8

Brick

12

Karur

4

Sundried Paper

13

Perambalur

2

Handicrafts

14

Ariyalur

2

Coir

15

Pudukottai

7

Coir

16

Madurai

12

Coir

17

Theni

9

Polythene

18

Dindigul

8

Lock workers

19

Ramanathapuram

9

Coir

20

Sivagangai

10

Polythene

21

Virudhunagar

4

Matches

22

Tirunelveli

20

Tailoring & Metal

23

Thoothukudi

12

Matches

24

Nagercoil

16

Coir

25

Dharmapuri

9

Printing

26

Krishnagiri

8

Coir

27

Salem

15

Sago & Coir

28

Namakkal

3

Printing

29

Erode

6

Printing & Coir

30

Coimbatore

20

Printing & Metal

31

Thiruppur

8

Tea

32

The Nilgiris

21

Coir

 

Total

311

 

 
Trade wise performance of the societies are furnished below: