CO-OPERATIVE MARKETING

Shivam AzadShyam Kumar

MBA (BE), BATCH(2011-13)

Submitted to:Prof. mukesh ranga

INSTITUTE OF BUSINESS MANAGEMENT, C. S. J. M. UNIVERSITY KANPUR

ObjectiveTo make the students aware regarding the

concept of cooperativesTo learn about the role and functions of

cooperative marketing in India

IntroductionToday cooperation has come to stay as an

instrument of economic growth and social reforms all over the world. It was introduced in European countries over a century ago. The first cooperative society which was formed in England at Rockdale in 1844, gave philosophy and procedure of work on the basis of cooperative doctrine. It was found useful and got recognition in all the countries. The society consisted of twenty-eight weavers.

MEANING OF COOPERATIVE MARKETING

H. Calvert di defines cooperation “as a form of organisation, wherein person voluntarily associate together as human beings, on the basis of equality for the promotion of the economic interest of themselves”. Whereas Prof. Paul Lumbert has defined that “Cooperative society is an enterprise formed and directed by an association of users

ROLE OF COOPERATIVESTransfer of technologyFertiliser production and distributionIrrigationOrganised marketingProcessing of agricultural produceAgricultural creditPackage dealEquity in agricultural development

STRUCTURE OF COOPERATIVE MARKETING SOCIETIES

Base levelCentral/District levelState level

TYPES OF CO-OPERATIVE MARKETING SOCIETIES

Single commodity cooperative marketing societies

Multi-commodity cooperative marketing societies

Multi-purpose, multi-commodity cooperative marketing societies

MEMBERSHIPOrdinary membersNominal members

Source of financeShare capitalLoansSubsidy

FUNCTIONINGSale on commission basisPurchase of members produceAdvancement of creditProcurement and price support

purchases

PROGRESSThe value of agricultural produce marketed

through the cooperative marketing societies increased from Rs. 53 crores in 1955-56 to Rs. 738 crores in mid-nineties. The produce marketed through these societies account for 8 to 10 per cent of the marketed surplus. The important commodities marketed by these societies are food grains, sugarcane, cotton, oilseeds, fruits, vegetables and plantation crops. The progress of cooperative marketing societies has varied from state to state and within each state from commodity to commodity

Reason for slow progress of cooperative marketing

Farmers are indebted to local traders and enter into advance contracts with them for the sale of the crop

In some cases rivalries among farmer-members result in indecision, which hampers the progress of the societies

Members lack confidence in cooperative organizations, for most of the cooperative sector enterprises run at loss

Societies do not provide facilities of food and shelter to farmers when they visit the market for the sale of the produce

There is lack of sufficient funds with the societies to meet thecredit need of the farmers against pleding of the producebrought fore sale. Nor do they make an advance payment ofthe value of the produce purchased or sold through them

Suggestions for strengthening of cooperative marketingsocieties

Cooperative marketing societies should develop sufficient storage facilities in the mandi as well as in the villages

The societies should give adequate representation to the small and marginal farmers in their organisational set-up

Cooperative marketing societies should diversify their activities. They should sell the produce and inputs, and engage in the construction of storage facilities

In the selections of the officials of cooperative marketing societies, weightage should be given to business experience and qualifications. After their selection, the officials should be given proper training so that they may deal efficiently with the business of the society. The efficiency should be rewarded, wherever possible

Thank you