The Cooperative That Employs 80,000 People With No CEO — Mondragón vs IFFCO Explained

The Cooperative That Employs 80,000 People With No CEO — Mondragón vs IFFCO Explained

In the rain-soaked hills of Basque Country, Spain, a factory worker casting engine parts earns no less than one-sixth of what the highest-paid manager takes home — and that manager was elected by the very workers on the shop floor. Meanwhile, in Kalol, Gujarat, a marginal farmer holding two bighas of land collects his subsidised bag of Nano Urea from the local society, blissfully unaware that his purchase traces back to one of the world’s largest fertiliser cooperatives headquartered over a thousand kilometres away in New Delhi. Two cooperatives. Two continents. Two radically different answers to the same question: can ordinary people govern an enterprise worth billions?

I have spent years covering India’s cooperative sector for IICTF, and no comparison sharpens the ideological fault lines of the movement quite like placing Mondragón Corporation beside IFFCO (Indian Farmers Fertiliser Cooperative Limited). One has no CEO and lets workers vote on salaries. The other has a Managing Director, a government-linked board, and serves over 35,000 member cooperatives across India. Both are wildly successful. Both claim the cooperative identity. Yet their DNA could not be more different.

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IFFCO Was Born in Gujarat — Here’s the Untold Story of How It Became the World’s Largest Fertiliser Cooperative

IFFCO Was Born in Gujarat — Here's the Untold Story of How It Became the World's Largest Fertiliser Cooperative

In the summer of 1966, a groundnut farmer in Mehsana district, Gujarat, watched his crop wilt — not from drought, but from the sheer impossibility of buying fertiliser at a price he could afford. That year, India imported nearly 60% of its fertiliser requirement, and private traders in rural Gujarat marked up prices by margins that made farming a losing bet. I have spent years covering the cooperative sector, and no origin story fascinates me quite like what happened next — how that farmer’s desperation became the seed for an institution that now serves over 35,000 cooperative societies and touches the lives of approximately 50 million Indian farmers.

The institution I am talking about is Indian Farmers Fertiliser Cooperative Limited (IFFCO), registered on 3 November 1967. What most people do not know is that IFFCO was not a government project imposed from Delhi. It was a grassroots demand, channelled through cooperative networks in Gujarat, that eventually convinced policymakers to back one of the boldest experiments in India’s agricultural history.

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