Question

During the Karve Committee reformulation, which aspect became explicitly part of co-operative principles?

• A. Selling unadulterated goods
• B. Only local membership allowed
• C. Surplus belongs to members in proportion to use
• D. Abolishing democratic control

Answer 1

Answer:

C. Surplus belongs to members in proportion to use

The Karve Committee (India) emphasized that the surplus generated by a cooperative should be distributed among members based on their participation or use of the cooperative, rather than on capital contribution. This principle aligns with the mutual benefit concept of cooperatives. It ensures equity and fairness, reinforcing the idea that cooperatives exist primarily for member service, not profit maximization.