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Role of cooperative institute in ruralmarketing
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Cooperatives asorganisations The first cooperatives was started in
country in or around 1904
The central and state government take
the lead in the formation ofcooperatives at state,district andvillage levels,share in capial
contribution and stand gaurantee forloans to them from organisation likeNABARD and national cooperative
development corporation(NCDC)
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FORMATION OF THEORGANISATION IN CAPITALIST SYSTEM the
organisation is established as anindividual proprietorship,corporation,
or a joint stock company IN SOCIALIST ECONOMY-the state is
responsible for creation of
organisation. IN MIXED ECONOMY-both the
systems may compete with each other
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The fact hat the best-suited form oforganisation for rural people is
cooperatives(amul)
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The main intention of cooperativesis to bring persons desirous to havean economic activity together,sharing the functions in such a waythat it benefits them individually as
well as collectively
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The people who come together areprimarily called promoters, who
frame by- laws and adopt them The society is registered with the concerned state
cooperative department and the society gets alegal status to run the business activity envisaged.
The members constitutes the general body meetat least once a year-for future plans and objectivesand devise ways and means of administration,management and control.
They elect a board of directors to administer andmanage he societies affair and this board elects oroppoints chief executive,secretary to carry on thedaily affairs.
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The concerned state governments,NABARD,& national cooperativesdevelopment(NCDC) liberally
contribute towards the share capitaland also extends credit facilities tothe societies
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There has been a tremendous progress
in the field of cooperatives and in factvery efficient& profitable companies are
in the cooperative sector
viz indian farmers fertilisers coopertiveltd(IFFCO),krishak bharati cooperative
ltd(KRIB CO),the gujarat cooperatives
milk federation ltd(which exports diaryproducts)
(NAFED)the main exporting body of
agricultural commodities from country
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Structure of cooperativesorganisations
Village level marketing socities
Taluka agricultural produce cooperativemarketing socities
Karnataka state cooperatives marketingfederation
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The three tier structure hasadvantages in administration and
management
The state mrktng federation open a letter
of credit with banks & is responsible forfinal payments to suppliers
All the input like cattle feed, grass slipsetc required by village societies to thevillage societies through he district- levelunions
State- level organisations takes theresponsibility of settlement of bills
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Types of cooperativeorganisations The other types of societies
includes:
Primary agriculture credit societies
Cooperatives marketing societies Cooperatives processing societies
Multi-purpose cooperatives societies
Arts & craftsmen cooperative societies Rural industrial cooperatives
Consumers cooperatives societies
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Cond..
Cooperative fair price shops
Cooperatives weavers societies
Oil-seeds growers cooperatives
societies
Cooperative cottonprocurement,ginning and bailing
societies cooperative cotton marketingsocieties
farmers service cooperatives
societies
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The activities of the societiesinclude:
Providing credit to farmers ,artisans andcraftspeople
Supplying agricultural inputs likefertilizers,pesticides etc
Marketing of agricultural produce Processing and marketing of agricultural produce Supply of essential commodities like sugar,edible
oil, kerosene etc Supply of raw materials to artisans craftspeople
and rural industries Marketing of rural industrial products Serving as retail outlets for consumables
&durables
Sh f it l i ti l
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Share of capital in national
incomeSl no Activity Propotion covered
1 Rural network in terms ofvillages covered
100%
2 Agricultural credit disbursed 46.31%
3 Share in fertilizersdistribution
36.60%
4 Share of nitrogenousfertilizers produce
14.80%
5 Share in phosphoricfertilizers produce
23.50%
6 Share in sugar production 54.95%
7 Capacity utilization incooperative sugar factories
85.70%
8 Share in wheat procurement 27.80%
9 Share in jute procurement 21.50%
C d
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Cond..10 Cooperatives share of
retail fair shop28.00%
11 Share of milk procured to
total production
6.70%
12 Share of edible oil-seedsprocured and edible oilsold
51.00%
13 Share of spindleage in
cooperative spinning andweaving mills
10.00%
14 Share of cotton produceand marketed
67.50%
15 Share of cooperatives inhandlooms
55.00%
16 Share of fish handled 21.00%
17 Village-level storagefacility
62.50%
18 Share of soya beanproduction
7.50%
19 Proportion of salt 7.40%
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Impact of cooperatives on ruralmarketing
The strength of cooperatives should beunderstood and the already existingnetwork of distribution has to be used incoverage and extension of rural market
The three tier structure of operationsthere is a dependable inter- linkageamong the organization a different levels
He apex body in the three tier structureat state level takes the responsibility ofprocurement distribution, marketing andcollection of dues
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The iniciatives to promote thecooperatives comes from thegovernments,the bureaucratic
approach is inbuilt and there ispolitical inference or control whichmakes the organisation inefficientand ineffective
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With all the limitations,there aresome sucessful cooperationorganisation operation in thecountrylike AMUL,IFFCO,KRIBHCOAND OTHERS
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