co operative marketing

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Co Operative Marketing


  • 1.
    • 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 is possible through private trade.
    • According to FAO Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.
  • 2.
    • To sell the members product directly in the best market and in a state which attracts the best price.
    • To grade the produce in such a way that the best price is obtained for all qualities to the advantages of the grower.
    • Give fair weight.
    • Handle the crop without damage or waste.
    • Strengthen the bargaining power.
    • Help members to produce the best product, which has most demand, this may include processing also.
    • Educate the members in marketing.
    • Stand for fair trading practices and stop manipulation of prices.
    • Provide finances to producers and help them in getting finances.
  • 3.
    • Marketing of produce
    • Distribution of fertilizers
    • Distribution of seeds and agricultural machinery
    • Grading and pooling of produce
    • Processing activities
    • Provision of storage faccilities
    • Provision of financial assistance
    • Manufacture of Implements
    • Foreign and Inter-state trade
    • Other activities
  • 4.
    • Brings in economy in cost of marketing.
    • Supply quality goods to customer.
    • Makes available grading & transportation facilities.
    • Acts as a part of the government for procurement and implementation of price support policy.
    • Encourage self help and thrift.
    • Links marketing with credit.
  • 5.
    • Abolition of Middlemen.
    • Collective bargaining.
    • Storage facilities for members.
    • Standardization and grading.
    • Higher prices of members.
    • Market infrastructure.
    • Supplying inputs and consumer goods.
    • Facility of correct weighing.
    • Relief from illegal deductions.
    • Linking credit, processing and & farming.
  • 6.
    • Reduce cost and improved services.
    • Improve marketability reduce all undefined and undesirable market changes.
    • Safeguards against rising costs & input prices.
    • Provides credit.
    • Storage facilities.
    • Processing of agr. produce.
    • Market intelligence.
  • 7. 10/22/09
  • 8.
    • National Agricultural Co-operative Marketing
    • Federation (NAFED)
    • It was established in 1958, with the following
    • objectives:
    • Co-ordinate & promote the marketing and trading activities of its members in agr. Goods.
    • Undertake or Promote inter state, intra state & international trade.
    • To Undertake the supply of agr. Inputs lilke seed, fertiliser, manure, agr. Implements, etc..
    • It has brancehs at Chennai, Mumbai, Kolkata & Delhi.
  • 9.
    • These are apex institutions for all co-operative
    • marketing in the state.
    • Functions of State Level Co-operative Marketing
    • Societies :
    • They provide credit and other facilities to District Marketing Societies.(DMS)
    • They buy and sell products of DMS.
    • Wholesale distribution of chemical fertlisers, iron, steel, cement, sugar, wheat, kerosene, coffeeseeds, rice, milkpowder, etc., in addition to agr. Implements & insecticides.
    • Overall co-ordination of co-operative marketing.
  • 10.
    • District Level Marketing Societies Central Marketing
    • Societies
    • They deal with primary marketing societies(PMS) at village level.
    • Purchase & sell agr. produce & supply agr. Inputs to farmers through PMS.
    • Primary Marketing Societies
    • They deal in a single commodities or many
    • commodities at a time. They collect &
    • standardise the produce brought to them by
    • their members & make arrangements for their
    • sale. They also advance loans to their members
    • Against the produce. They are multipurpose
    • societies.
  • 11.
    • Less cost of marketing.
    • Quality goods supplied to customers.
    • Help in growth of better crops.
    • Credit facilities at low interest rates.
    • Fair prices to customers.
    • Stabilization of prices.
    • Surplus distribution.
    • Help Govt. in programmes for rural development.
    • Educative value.
  • 12.
    • Unplanned setup no attention while fixing the volume of produce, area of operation, finance requirements, etc.
    • Malpractices.
    • Lack of initiative by members, only Govt. initiative.
    • Less no. of regulated markets.
    • Competition from credit societies, middlemen, traders, etc..
    • Lack of co-ordination.
    • Lack of audit and supervision.
  • 13.
    • Illiterate farmers & less marketable surplus.
    • Lack of warehousing & transport facilities.
    • Defective loan policies.
    • Untrained persons.
    • Lack of funds.
    • No incentives to Marketing Societies.
  • 14.
    • Proper Storage facilities.
    • Grading & Standardization.
    • Large area of operation so as to have large business.
    • Bring down cost of management.
    • Specialized knowledge and techniques.
    • Better co-ordination between credit societies and marketing societies.
    • Trained and experienced staff.
  • 15.
    • Target oriented approach in terms of number of societies.
    • Organization of societies should be run on democratic lines
    • Finances of the societies should be improved
    • Marketing societies should undertake sales on commission basis
    • Existing potentially viable societies should be revitalized while defunct societies should be liquidated


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