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.


Karnataka has a special place in the Indian cooperative sector, as it is one of the first states to have started the movement. We are proud to say that, the first agricultural credit cooperative society in Karnataka started in a village called Kanaginahaala, Gadag district, in 1905. In the same year, a consumer cooperative society also started in Bangalore.

Prior to unification of states present Karnataka was divided into various provinces such as Hyderabad, Mumbai, Mysore, Madras etc. All provinces had their own Law relating to cooperative Societies. They are:

  • Mumbai Cooperative Societies Act, 1925
  • Madras Cooperative Societies Act, 1932
  • Madras Land Mortgage Act, 1934
  • Kodagu Cooperative Societies Act, 1936
  • Mysore Cooperative Societies Act, 1948
  • Hyderabad Cooperative Societies Act, 1952
  • Hyderabad Land Mortgage Act, 1949

After unification of states in 1956, The Mysore Cooperative Societies Act, 1959 was enacted which applies to whole Mysore State. It came into force from June 1, 1950. Mysore State was renamed as Karnataka in 1973 and the Act was also renamed as Karnataka State Cooperative Societies Act, 1959.

As on March 2004, Karnataka has 32,804 cooperative societies Under which 27,261 are active. Among these, 15,468 societies are profitable and 12,756 are under loss. Around 9367 Milk cooperative societies, 301 urban cooperative banks and around 2000 credit cooperative societies are some of the sectors in Cooperative field which are profitable in the state. Karnataka has 9,367 milk cooperatives, which are producing over 23 lakh litres of milk every day.

The state has over 4,000 Primary Agricultural societies and over 10.12 lakh farmers are benefited from these cooperatives. In Karnataka 100% villages are covered by cooperative Societies.

Karnataka is progressive in Cooperative movement. It is pioneers in bringing parallel cooperative law.


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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