Analysis of Performance of Co-operative Societies under Different Cooperative Legislations in Karnataka

This study has examined the structural changes in cooperative legislation in the state of Karnataka to document the perception of members about cooperatives registered under new self-reliant Act. It has also examined the extent of participation of members in management of new societies and has looked into the involvement of members in equity contribution and activities of cooperative societies. For study, 10 cooperatives (5 registered under old Act and 5 under new Act) were selected in Chitradurga district and data were collected from 100 members for the year 2013–14. The data have been analyzed using percentages, averages, compound growth rate and Garrett ranking technique. The study has revealed that about 86 per cent members regularly participated in the activities of cooperative societies. On an average, members contributed equity of 6240 under KCS Act 1959 (Old Act), while it was 12000 in case of KSS Act 1997 (New Act). The CGR with respect to membership during the period 2008–09 to 2012–13 was 2.60 per cent under the old Act and 15.22 per cent under new Act. The share capital and reserve fund have shown the CGR of 5.45 per cent and 5.14 per cent, respectively for societies registered under Old Act, whereas it was 22.95 percent and 48.60 percent, respectively for the societies registered under New Act during the same period. In general, the study has indicated a better performance of cooperative societies registered under the New Act compared to the cooperative societies registered under Old Act. Hence, there is a need to encourage and promote cooperative societies in the state under the Karnataka Souhardha Sahakari Act, 1997 (New Act).