marketing co-operative

8/7/2019 MARKETING co-operative

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MARKETINGCO-OPERATIVES



According to RBI

Co-operative Marketing is a co-

operative association of cultivators

formed primarily for the purpose of

helping the members to market their

produce more profitably, than ispossible through trade.



Objective

To secure best possible market price for

members products

To reduce the cost of marketing To act as a powerful check upon the

monopolistic power

To save farmers from exploitation

Protection of consumers interest



Need and Importance

Abolition of Middlemen

Collective Bargaining

Storage Facility

Standardization and Grading

Higher prices to members

Large and wide Infrastructure

Supply inputs & Consumer goods

Relief from illegal deduction



Advantages

Provides easy and cheap credit

Offers Collective bargaining to farmers

Help reduce price spread

It links, integrate and streamline production,

processing and marketing

Guarantees of a fair return



Business Operations

Commission Business

- The marketing society acts as the agent

between the farmers and the traders.

Outright Purchase

- The marketing society purchases the farmersproduce outright by making them payments

immediately.



Contd.

Advance Against Stock

- The marketing co-operative helps farmer byallowing them to store their product with itfor which they receive advance payments.

Pooling

- In this type, farmers produce is assembledand sold in one lot instead of selling on an

individual basis by the farmers.



Contd.

Grading

- The farmer is motivated to raise its productquality, for which he is rewarded with betterreturns.

Processing

- The marketing society take up the work of processing the commodities and make them

fit for consumption.



Contd.

Procurement

- On behalf of the government, the marketingsociety may take up theprocuring agricultural

produce from the farmers to ensure theirproducts with the minimum support price fixedby the government.

Supply of Inputs to Agriculture

- The members are provided with the inputsnecessary for better cultivation.



Contd.

Distribution Of Consumers Goods

- The marketing society supplies essential

goods at reasonable prices, in areas whereviable consumer co-operatives do not exist.

Services

- The marketing co-operative provides its

members with storage and transport facility.



Contd.

Export

- If there is foreign demand then the society

arranges for export through its highermarketing organization.



Business Operations

Commission Business

Outright Purchase Advance Against Stock

Pooling

Grading



Contd.

Processing

Procurement Supply of Inputs to Agriculture

Distribution Of Consumers Goods

Services

Export



Co-operative

Marketing in

INDIA



Scope

The average farmer in India

is illiterate and poor

is prone to exploitation does not have adequate storage facilities.

The transportation network in our country is

not well developed.



Structure Of Co-operative

MarketingNAFED

State Co-operative Marketing

Federation

District Marketing Co-operative Society

Primary Marketing Co-operative Society



Source of Finance

Marketing societies raise their finance by

Issuing Shares The State Govt. purchases half the

number of shares.

Raising Loans Loans are raised fromo The Central Co-operative Bank

o The National Co-operative Development Corporation

o The National Agricultural Co-operative Marketing

Federationo The State Bank of India

o The Marketing Board



Failure of Marketing Co-

operatives in India They do not have sufficient storage space.

The loaning policies has been faulty.

Their operational costs are high. Their staffs are untrained.



Reasons behind Failure

Farmers are indifferent to Co-operatives

Marketing co-operatives do not have a wellthought out programme of action in regard to

the conduct of different marketing activities There is no proper link between Primary

Marketing Co-operatives and State MarketingFederation, Primary Marketing Societies andPrimary Credit Societies

The managing committees of most marketingsocieties do not take keen interest in conduct of their business



Contd.

The marketing societies provide only few

marketing services such as processing, to the

farmers

Marketing societies suffer from lack of

sufficient working capital



Measures for Improvement

Effective relationship between marketing andcredit societies

Primary Marketing Societies should be member

of the State Marketing Federation The marketing societies must work out the

detailed plans best suited to their localconditions

The management committee should be wiselyelected to ensure effective functioning

The Central and State Government must helpthe societies to build proper storage places



Contd.

Grading and standardization must be done

by experts hired by marketing society

The Government must offer adequatefinancial assistance to marketing societies



Contributed by

Mradula Mahajan 26

Shweta Pal 35

Rushabh Shah 46 Tina Mirpuri 31

Jainam

Neil Batavia 04

Punita

marketing co-operative

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