Welcome to the world of Karnataka State Souharda Federal Cooperative Ltd, the first Apex Body of New generation cooperatives in India. Souharda Federal Cooperative is a democratically elected self-regulatory organization of the cooperatives registered under Karnataka Souharda Sahakari Act, 1997.


India is celebrating centenary celebration of Cooperative Law. The first Cooperative Law of India The Cooperative Credit Societies Act, 1904 was passed on 25th March 1904.


The principle of cooperation is part and parcel of Indian Culture. We can trace the co-operation in our ancient Vedas and Upanishads have many Co-operation occupies an important place in the Indian economy. Perhaps no other country in the world is the co-operative movement as large and as diverse as it is India. There is almost no sector left untouched by the co-operative movement.

The main areas of operation of co-operatives in India are as under :

  • Agricultural Credit.
  • Agricultural supplies.
  • Agricultural Marketing.
  • Agricultural Processing.
  • Housing co-operatives.
  • Industrial co-operatives.
  • Urban credit Co-operatives.
  • Public Distribution of essential commodities through consumer co-operatives.

Co-operative movement in India is the result of a deliberate policy of the state and is vigorously pursued through formation of an elaborate governing infrastructure. The successive Five year plans looked upon the co-operation movement as the balancing sector between public sector and the private sector.

And the success is evident. Almost 50 percent of the total sugar production in India is contributed by sugar co-operatives and over 60 percent of the total fertilizer distribution in the country is handled by the co-operatives. The consumer co-operatives are slowly becoming the backbone of the public distribution system and the marketing co-operatives are handling agricultural produce with an astounding growth rate.

The National Co-operative Development Corporation (NCDC), a statutory body was set up in 1963 by the Union ministry of Civil Supplies and Co-operation, to promote the co-operative movement in India.

Further there is the Indian Farmers Fertilizer Co-operative LTD (IFFCO), which has been successful in setting up an effective marketing network in most of the states for selling modern farming technology instead of fertilizers alone. The operations of IFFCO are handled through its more than 30,000 member co-operatives.

The National Agricultural Co-operative Marketing Federation (NAFED) has over 5000 marketing societies. These societies operate at the local wholesale market level and handle agricultural produce. Thus the farmers have a market for their produce right at their door-step. A market which assures them reasonable returns and guaranteed payments.

In India we find that the states like Maharashtra and Gujarat are well developed. Where as the states of Andhra Pradesh, Rajasthan and Karnataka have shown remarkable progress in the co-operative movement and there is a vast potential for the development of co-operative in the remaining states.

Today Co-operatives are committed to securing an improvement in the quality of life of a vast majority of Indian.


The basic guidelines for the formation of Co-operatives under Karnataka Souharda Sahakri Act, 1997 are as follows:

  • Promoters meeting
  • Collecting initial share capital
  • Registration
  • Election to first Board
  • Beginning of activities

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