Large Area Multipurpose Co-Operative Society (LAMPS)

Origin

The Large Area Multipurpose Societies (LAMPS) scheme originated in India in 1973, when the K.S. Bawa Committee recommended the formation of large multipurpose societies in tribal areas. The scheme was started by the Reserve Bank of India’s Agricultural Department, with the support of the Co-operative Planning Committee.

Introduction

A Large Area Multipurpose Co-Operative Society (LAMPS) plays a significant role in economic development, especially in rural areas. These societies serve various purposes under one umbrella and work to enhance the lives of farmers, artisans, and other local communities by pooling resources and efforts.

What is a Large Area Multipurpose Co-Operative Society (LAMPS)?

A LAMPS is a type of co-operative society that operates in a large geographical area, usually covering multiple villages or towns. The primary aim of LAMPS is to provide various services to its members, addressing multiple needs through collective action. These societies focus on the economic, social, and developmental welfare of its members.

LAMPS are typically structured to work with a variety of sectors, such as:

• Agriculture and Allied Activities:
  • Offering services like agricultural input supply, marketing, crop insurance, and credit facilities.
• Financial Services:
  • Providing credit, savings, insurance, and loan facilities to members.
• Marketing and Consumer Goods:
  • Facilitating the purchase and sale of goods, such as agricultural produce, consumer items, and crafts.
• Social Welfare:
  • Running community development programs like health care, education, and infrastructure development.
• Processing and Storage:
  • Offering post-harvest services such as cold storage, food processing, and warehousing.

Key Features of a LAMPS

• Multi-dimensional Services:
  • The core benefit of LAMPS lies in its ability to provide a wide range of services under one structure. From supplying farm inputs to providing financial services, LAMPS aims to address several needs of its members simultaneously.
• Members as Shareholders:
  • Like other co-operatives, LAMPS is owned and governed by its members. Each member has a share in the society, and decisions are made democratically, with one member, one vote.
• Cooperative Principles:
  • LAMPS operate on the principle of cooperation, mutual benefit, and self-help, ensuring that the profits generated are reinvested for the benefit of members rather than shareholders or external entities.
• Serving Rural Communities:
  • LAMPS are especially beneficial to rural areas, where financial services and agricultural support are limited. They empower farmers and local businesses by providing essential services that might otherwise be unavailable.

Structure and Organization of a LAMPS

A typical LAMPS is structured as follows:

• General Body (GB):
  • The General Body consists of all the members of the society. This body elects the Board of Directors (BoD) and is responsible for major policy decisions and approving the annual budget and plans.
• Board of Directors (BoD):
  • The BoD is elected by the General Body and serves for a fixed tenure. They are responsible for overseeing the functioning of the LAMPS, ensuring the implementation of policies and decisions, and managing day-to-day operations.
• Management:
  • The management team handles the daily operations of the society. It consists of various professionals, including managers, accountants, and clerks, who ensure smooth functioning.
• Committees:
  • LAMPS may have specialized committees, such as audit, credit, and marketing committees, to handle specific operational areas.

Functions and Services Offered by LAMPS

• Agricultural Services
  • Supply of Inputs:
    • LAMPS provide fertilizers, seeds, pesticides, and agricultural tools to farmers at reasonable rates.
  • Credit Facilities:
    • Farmers are provided with short-term and long-term loans for purchasing inputs, machinery, or expanding their farming operations. LAMPS also facilitate crop insurance programs.
  • Technical Guidance:
    • Experts and professionals within LAMPS offer advice on modern agricultural techniques, pest control, and soil management.
• Financial Services
  • Credit Facilities:
    • LAMPS provide credit to farmers, artisans, and members for various purposes like farming, purchasing machinery, or for emergency financial needs.
  • Deposits and Savings:
    • Members can open savings accounts, earn interest, and deposit funds safely in the LAMPS cooperative.
  • Insurance:
    • These societies often offer life and crop insurance, safeguarding the financial interests of their members.
• Marketing and Sales
  • Input and Output Marketing:
    • LAMPS facilitate the sale of agricultural products like grains, fruits, and vegetables by connecting farmers with buyers at fair prices. This reduces exploitation by middlemen.
  • Consumer Goods Supply:
    • LAMPS also act as a wholesale supplier of daily goods, including food, household products, and other necessities, often at discounted prices.
• Processing and Storage
  • Cold Storage Facilities:
    • LAMPS operate cold storage facilities, preventing post-harvest losses by preserving perishable items like fruits, vegetables, and dairy products.
  • Processing Units:
    • Some LAMPS run small-scale processing units that add value to raw agricultural products, such as milling grains or packaging fruits.
• Community Welfare Initiatives
  • Healthcare:
    • LAMPS organize health camps, distribute medicines, and even run primary health centers to improve the healthcare situation in rural areas.
  • Education:
    • They may support schools or offer scholarships to members’ children to promote education within the community.
  • Infrastructure:
    • LAMPS may engage in rural infrastructure development like road construction, water supply projects, and electrification.

Benefits of a LAMPS

• Economic Empowerment of Farmers:
  • By providing direct access to inputs, credit, and marketing services, LAMPS help farmers improve productivity and profitability.
• Reduction in Exploitation:
  • The role of middlemen is minimized, as LAMPS facilitate direct sales of goods. This ensures farmers receive fair prices for their produce.
• Financial Inclusion:
  • LAMPS promote financial inclusion by offering affordable credit and savings options to members, particularly in remote areas.
• Community Development:
  • Through health, education, and infrastructure projects, LAMPS foster a holistic development approach within rural communities.
• Sustainable Growth:
  • By offering agricultural advice, technical support, and market access, LAMPS help farmers adopt sustainable farming practices, ensuring long-term economic growth.

Challenges Faced by LAMPS

• Management Issues:
  • The efficiency of LAMPS can be hampered by poor management, lack of training, and internal conflicts within the governing bodies.
• Financial Constraints:
  • While LAMPS offer credit facilities, many face financial constraints themselves, limiting their ability to provide adequate services or expand.
• Lack of Technological Advancement:
  • Many LAMPS operate in rural areas where access to technology is limited. Without modern tools and infrastructure, they may struggle to compete with larger, more modern cooperatives or private sector initiatives.
• Dependence on Government Policies:
  • LAMPS often rely on government support and subsidies. Any changes in policies or funding cuts can disrupt their operations.

Conclusion

Large Area Multipurpose Co-Operative Societies (LAMPS) play an indispensable role in the development of rural areas. By offering a wide range of services such as credit, agricultural inputs, marketing, and community welfare programs, LAMPS empower local communities, especially farmers and artisans. Though these societies face challenges, their ability to unite people for mutual benefits and foster economic and social growth makes them crucial for rural economies.

Through continued reforms, better management practices, and technological advancements, LAMPS can continue to serve as a cornerstone for rural development and poverty alleviation across the globe.