An Economic Analysis of Production Industrial Co-Operatives in Tamil Nadu: The Stochastic Production Function Model

Abstract

There are twenty types of Industrial Cooperatives (ICs) functioning all over Tamil Nadu under the category of Production ICs and Service ICs. They have been classified under different types of trades Tea ICs, Sago and Starch ICs, Match ICs, Leather ICs, Coal Coke ICs, Brick ICs, Metal ICs, Engineering ICs, Polythene ICs, Coir ICs, Auto ICs, Tailoring ICs, Estate ICs, Print ICs, Bank ICs, Labour ICs, Special ICs, and Handicrafts ICs. These societies use local resources as the raw material, employ local labourers Including skilled, unskilled, and women labourers. The study examines the trend of Industrial cooperative societies, the operational efficiency of the societies, and trade wise performance of the societies. The Input - Output relations were also analyzed. It was found from the analysis that societies will have a positive growth trend in the forthcoming years, but the reduction of workers in this sector Indicates the reduction of employment opportunities in the sector. It was also found that the distribution of societies is more in the profit-making units than in the loss incurring and dormant units.