to develop and establish Rural Supply and Marketing Co-operatives
(RSMCs) and Rural Credit Co-operatives (RCCs). The RSMCs were
mainly responsible for the supply of agricultural inputs to, and the
purchase of agricultural products from, farmers and served as a connection
or extension of the state in urban areas. In the early 1950s, the
RSMCs were truly co-operative organisations and membership increased
quickly from 26 million in 1950 to 161 million in 1954. The aim of the
RCCs was to mobilise surplus funds from farmers for lending to the
other farmers. The number of RCCs also exploded, from 33 in 1950 to
21,281 in 1954, and RCCs later became an important capital source for
rural construction and development.