BACKGROUND AND CURRENT STATUS OF THE SECTOR
 The cooperative movement was launched in Lakshadweep in 1962
 In the Five year plans, this movement has covered almost all fields
of economic activity in the islands.
 The cooperative movement could really make rapid strides not only
in Marketing of Agricultural Produce (Copra) but also in the
distribution of consumer goods and providing of cheap credit to the
people.
 At present, there are 67 registered Cooperative Societies in
Lakshadweep.
 The LCMF and ten Primary Cooperative Supply & Marketing
Societies have become the very back bone of Island economy as far
as Marketing of Agricultural/ fishing produce (Copra/Mass meen) and
distribution of essential commodities are concerned.
 The nine Service Coop. Societies have established a name for
themselves in meeting the short term and medium term credit
requirements of the people.
 The six Govt. Employees Coop. Stores and Canteens in the Islands
are designed to meet the special requirements of its members who
are Govt. servants.
 The Six Labour Contract Cooperative Societies have established
great potential for construction works and other labour oriented
activities in this union territory.
 Seven fisherman Cooperative Societies, Seventeen industrial cooperative
Societies, Four student Cooperative Societies, Four women coop.
Societies, one water Transport coop Society have also been registered
and functioning. One Cooperative Bank has also been registered, which is
yet to start functioning for want of requisite license from RBI .
Cooperative Societies at a glance as on 31-03-2011
SI.
No
Name of Society
1
LCMF
2
I.C.S & M.S
3
Number
Membership
Share Capital ( in lakhs)
Govt
Others
1
87
17.80
3.32
10
57816
21.25
5.03
GECS&C
6
3218
1.08
0.93
4
SCS
9
10020
15.70
18.35
5
LCCS
6
1163
1.44
0.39
6
INDCS
17
2014
1.50
1.25
7
FCS
7
563
0.20
0.06
8
WTCS
1
30
3.00
0.93
9
Students Coop. Societies
4
308
0.00
0.01
10
Women Coop. Societies
4
400
0.21
0.04
11
Coop. Bank
1
12
LDCS
1
NA
NA
NA
67
75619
62.18
30.31
Total
Performance of Cooperative Societies as on 31-03-2011
SI.No
Name of Society
1
LCMF
1875.20
830.24
202.52
2
I.C.S & M.S
2236.62
822.80
179.50
3
GECS&C
70.30
0.00
16.39
4
SCS
373.72
00
179.50
5
LCCS
5.00
0.00
7.46
6
WTCS
0.00
0.00
0.11
7
Women Coop. Societies
0.00
0.00
0.33
4560.84
1653.04
585.81
Total
Sales/Loa Of which
Govt loan
n issued
ration
outstanding
(In Lakhs) Commoditie ( In lakhs)
s (in lakhs)
Marketing of Agricultural Produce (Copra)-Island
wise (Quantity in MT and Value in Lakhs)
SI.N
o
Name of
Island
2008-2009
2009-2010
2010-2011
1
Kavaratti
488.22
196.94
542.97
240.95
250.71
160.86
2
Kalpeni
330.09
133.79
395.01
175.78
189.84
122.05
3
Amini
449.63
181.93
515.29
227.15
287.78
185.82
4
Andrott
749.92
306.63
800.21
356.09
325.38
215.78
5
Minicoy
8.45
3.29
28.89
12.85
6.11
3.86
6
Agatti
427.75
174.38
467.57
208.07
313.71
200.89
7
Kadmath
259.74
100.93
290.91
129.46
157.04
103.81
8
Kiltan
271.36
108.72
270.98
120.59
216.00
140.38
9
Chetlat
131.75
51.82
140.47
62.51
79.22
50.49
14.01
5.41
13.73
6.11
12.55
7.91
3130.92
1263.84
3466.02
1539.56
1838.34
1191.85
10
Bitra
Total
Plan Schemes Being Implemented by the
Department
Scheme
.
NO
Name of scheme
Budget
allocation
2011-2012
(Rs.In
Lakhs)
1.
Marketing & Processing of Agricultural
Produce
522.80
2.
Development of Consumer Cooperatives
23.00
3.
Development of Credit Cooperative
Societies
46.00
4.
Development of other types of Cooperative
Societies
3.20
5.
Training & Education.
5.00
Total
600.00
Brief Introduction of Schemes Being Implemented by the
Department
Marketing and processing of Agricultural Produce.
To market the entire Agricultural produce to the best
advantage of the farmers, the Lakshadweep Cooperative
Marketing Federation (LCMF) provides 90% of value of produce
to farmers as advance. There are seven sub schemes operated
under this major scheme,in which funds are provided to LCMF for
(1) Revolving Capital for Copra/Mass/Coir Marketing (grant-inaid) (2)Assistance to LCMF and ICS&MS for Marketing,
reimbursement for grading, storage, Service Charges. Etc. (3)
Loan & Subsidy for construction of godown /Office (4) Managerial
Subsidy (5) Share Capital (6) Acquiring /hiring ship /barge (7)
Establishment of Technical /promotional cell
 Development of Consumer Cooperatives
To maintain uninterrupted supply of essential commodities and
consumer goods at reasonable prices and to contain the
market price and to strengthen the activities of the LCMF,
ICS&MS and GECS. There are five sub schemes operated
under this major scheme. (1) Loan & Subsidy for Cargo
Vessels (2) Share Capital Contribution (3) Managerial Subsidy
to Govt. Employees Cooperative Store & Canteen. (4) Loan &
Subsidy for furniture to GECS&C (5) Working capital loan to
GECS&C
 Development of Credit Cooperative Societies
There is neither any Development Bank nor any state/central
Cooperative Bank in this Union Territory. The Credit
requirements of the people for short term /medium term are
being met by nine (9) Service Cooperative Societies (Primary
Agricultural Credit Coop. Societies) from the funds provided by
this Administration, by which the credit requirement of people
has gained greater momentum.
During the Year 2010-2011, these credit Societies (PACS) have issued
ST &MT loans to the tune of Rs.3.73 crores and recovered Rs.2.57
crores, which is much more than the Public Sector Banks in
Lakshadweep. This necessitates strengthening of credit infrastructure
by providing necessary (a) Working Capital loan (b) Share Capital
Contribution (c) Managerial subsidy (d) Interest subsidy on working
capital loan (e) Loan & Subsidy for Office building to the Service
Cooperative Societies.
 Development of other types of Cooperative Societies.
There is great potential for construction works and other labour oriented
activities in this union territory. It is therefore considered to revitalize the labour contract Cooperative Societies and also the
women Cooperative Societies & Student Cooperative Societies, by
providing financial assistance. There are six sub-schemes operated
under this scheme (1) Managerial Subsidy to LCCS (2) Working
Capital to LCCS (3) Share Capital to LCCS (4) Share Capital to
women’s Coop. Societies (5) Working Capital loan to WCS (6) Share
Capital to students Coop. Societies.
 Training and Education
There is no Cooperative Training Institution in Lakshadweep.
Therefore, Administration has to organize various training
programmes, Seminars etc and to depute departmental
officers and institutional candidates for undergoing training in
Cooperative Audit, Computer application, Banking, etc.at
Various institutions, such as VAMNICOM (Pune),
ATI(Kavaratti) etc. There are two sub-schemes operated
under this scheme, namely (1) Conducting of various training
programmes (2) Grant in aid to ATI
Plan Outlay & Expenditure for the year 2008-09
to 2010-11 ( Rs. In lakhs)
SI.N Schemes
o
1
Marketing &
Processing
Agricultural Produce
2
2008-09
Outlay
2009-10
Exp
Outlay
2010-2011
Exp
Outlay
Exp
805.00
770.20
1098.00
1098.93
580.46
580.46
Development of
Consumer
Cooperatives
18.00
15.83
17.96
17.96
20.69
20.69
3
Development of
Credit Coop. Societies
64.50
60.04
65.00
64.91
43.46
43.21
4
Development of other
types of Cooperative
Societies
16.00
0.00
1.20
0.28
3.25
3.25
5
Training & Education
4.00
0.00
5.35
5.35
4.48
4.48
907.50
846.07
1187.57
1187.43
Total
652.34 652.09
Recommendations made in Lakshadweep
Development Report on the Sector.
 A strategy has to be evolved to procure dried Mass from the
Islands and Market them through Cooperative
Societies/Lakshadweep Development Corporation as in the
case of copra.
 The Lakshadweep Cooperative Marketing Federation and
Cooperative Societies have to raise funds to meet the full
demand for marketing capital
 To build required infrastructure, like storage and warehousing
facilities in mailand centers, like Mangalore, Tuticorin, Calicut,
etc which would enable the producers of the island to be in a
better bargaining position.
What has already been done ?
 In the year 2009-10, the LCMF had procured dried mass meen (
38.00 MT worth Rs 85.82 lakh ) from local fishermen through
Cooperative Supply & Marketing Societies and marketed through
LDCL. Thereafter, no mass meen was procured due to the reason
that less amount of fish was caught and also the open market
price was higher than the procurement price fixed by LCMF and
LDCL. In the year 2009-10 and 2010-11, the administration has
released following funds as revolving capital for payment as
advance (up to 90%) to fishermen to undertake procurement and
marketing of mass meen:Year
Amount (Rs. In lakhs)
2009-10
326.00
2010-11
90.00
Total
416.00
Since no mass meen was procured during 2010-11, the funds
released to LCMF as revolving capital for procurement of mass
meen in that year, the LCMF was allowed to utilize that fund as
revolving capital for procurement of copra.
 Co-operative Societies are basically no profit no loss
institutions. However, for their survivals, they have to earn
some marginal amount as profit. Presently, most of the
Societies are running on loss. The Societies have been
advised to reduce the establishment and other incidental
charges and to increase the sales so that the operational
efficiency of the Societies could increase, and funds could be
raised to meet the demand for marketing capital. In the last
six years, the Administration has provided funds to LCMF as
revolving fund for payment as advance (up to 90%) to
farmers/fishermen for procurement of Copra /mass meen as
under:-
Amount provided to LCMF as Revolving funds (Rs.in
lakhs)
Year
Copra
Mass meen
Total
2005-06
39.95
00.00
39.95
2006-07
100.00
00.00
100.00
2007-08
200.00
00.00
200.00
2008-09
250.00
00.00
250.00
2009-10
250.00
326.00
576.00
2010-11
250.00
90.00
340.00
1089.95
416.00
1505.95
Total
 At Calicut the LCMF has already its own Godown. At
Mangalore they are using UTL Administration’s Godown.
In Tuticorin, no fruitful purpose would be served in
maintaining a godown, as the procurement of mass meen
is not in bulk. The available godown at Calicut and
Mangalore have sufficient storage capacity for storage
and marketing of mass meen, available for procurement
What is the relevant and can be done?
 The LDCL may also be asked to explore the possibility of the value
addition of mass meen by converting the same into mass meen
flakes, mass meen pickles, mass meen powder etc. which has much
demand in foreign markets, such as Srilanka, Saudi Arabia,
Singapore, Maleysia, Japan and other southeast Asian countries. For
this purpose, LCMF may consult Marine Products Export Development
Authority.
 The LDCL may also be asked to explore foreign markets for mass
meen and its products, so that fishermen could get much better price
for their produce.
What is not relevant or is not feasible?
 Since at present, the quantity of mass meen available
for procurement is much less, it may neither be useful
nor feasible to have a separate storing facilities for
mass meen at Tuticorin.