ppt on consumer coops

7/28/2019 PPT on Consumer Coops

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Some concerns for Consumer Cooperative

Societies

by

Dr. Bhagwati Prasad

Ex-Chief Executive

National Cooperative Union of India

During ICA/COOPFED Workshop on Development of

Consumer Cooperatives in Sri Lanka on 24-26 May 2012


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What is Consumer Cooperative ?

A consumers' cooperative is a business owned

by its customers for their mutual gain. It is a

form of free enterprise that is oriented towardservice rather than pecuniary profit. The

customers or consumers of the goods and/or

services the business provides are also the

individuals who have provided the capital

required to launch or purchase that enterprise.


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A

Forms of consumer Cooperatives

Consumers' cooperative may comprise

supermarkets, convenience stores, and other

businesses owned by independently-owned,and run Co-operative societies, which benefit

from joint co-ordination and co-operation in

managing their businesses. As mutually-owned

businesses, each member of a society has a

shareholding equal to the sum they paid in

when they joined.


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Relevance of Consumer Cooperatives

Consumer Cooperatives constitute theinstitutional framework in the distributive

trade for providing essential consumer articles

to the vulnerable section of society atreasonable prices. As a National policy,

consumer cooperatives have been developed

as self-reliant grass-root democratic institutionsowned, managed and controlled by their

members for the protection of interests of

consumers.


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Relevance.continued

The presence of consumer cooperativescreates an impact in the market especially to

protect the interests of consumers by way of

keeping intermediaries away from the

distribution channel. It plays a vital role from

the distribution of consumer goods,

particularly essential consumer goods at fair

prices to rural areas, including remote,

inaccessible and hilly terrains.


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State Support to Consumer Cooperatives

Consumer Cooperatives have received a good

deal of support from the Govt. as they help

check malpractices in times of crises arising

from shortages by making goods available and

thereby checking undue rise in their prices. But

in normal situation Govt. support is not forth

coming for strengthening consumer

cooperatives in general.


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STRUCTURE OF CONSUMER COOPERATIVES

In general consumer cooperatives have four tier structure as

follows:

1. Primary consumer cooperatives

2. Secondary i.e. Wholesale Consumer Stores

3. State level Consumer Federations

4. National level Consumer Federation


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Structure of Consumer Cooperatives

in India

1. National level NCCF

2. State level -- State Consumer Cooperative

Federation

3. District level -- Wholesale ConsumerCooperative Stores

4. Primary level -- Primary Consumer Cooperative

Societies/Primary AgricultureCooperative Societies

5. School Cooperatives


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Structure of Consumer cooperatives in

Sri Lanka

1. National level -- COOPFED2. Primary level Multi Purpose

Cooperative Societies

3. COOPFED & MPCS are selling consumer

goods through Self- Service Shops,

Cooperative Super Markets, Coop City and

Mini Coop City Shops.

4. School Cooperatives/ youth cooperatives


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Status at a glance in India ( as on 2006-7 )

1. No. of State Federations

30a. Branches495

b. Membership i. cooperative stores4495

ii. Individual members10856

iii. Other Institutions--46672. No. of Wholesale consumer Stores812

a. Branches4871

b. Membership i. cooperative stores0.018 Million

ii. Others

1.763 Million3. No. of Primary Consumer Stores21512

a. Branches7280

b. Membership 5690 Million

4. Student Cooperatives

8137


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Status at a glance in Sri Lanka ( as on 2009-10 )

1.Multi Purpose Cooperative Societies312

Membership3703900

2. School Cooperative Societies761

Membership216900

3. Youth Cooperative Societies21

Membership425000

4. Co-op City Stores363 Annual T/O Rs. 3600 Million

5. Mini Co-op City outlets1000 Annual T/ORs.3000 Million


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Problems of Consumer Cooperatives

1. Lack of Professionalism- Purchase, Sales,

Inventory- control, finance, HRD

2. Lack of Govt. support ( Sri Lanka exception )

3. Limited scope for financial resources mobilization

4. Lack of business relationship between different

tiers


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Problems ------------continued

5. No control over production v/s dependence

on middlemen and producers

6. Lack of modernization and upkeep of

outlets

7. Lack of business ethics in BOD

8. Lack of autonomy in business operations

due to restrictive provisions in cooperative


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Problems-----------------continued

9. Fierce competition from private due to

globalization

10. Consumer Coops lagging behind in adoption of

new technology and coping with emerging retail

culture/trend

11. Problem of old and un saleable stock due to

wrong purchases

12. Employees not keen to adopt new work culture


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Some suggested action Points for

strengthening consumer cooperatives

1. Policy and financial support from Govt.

2. Mobilization of resource

3. Professionalization of management through HRD

4. Training of BOD in business ethics and making

them aware about business strategy

5. Tie ups and collaborations


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Some suggested action---------continued

6. Diversification

7. Expanding business horizon beyond local

boundaries

8. Top management must play more pro active

role in conduct of business based on market

situation

9. Adoption of business strategy based on

demand and supply


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Some suggested action--------continued

10. Establishing link between vast network of

cooperative structure and using them for

business expansion

11. Adoption of new technology

12. Research and development in retail

management

13. Higher tier must provide guidance and support

to lower tier in business promotion


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Conclusion

Consumer cooperatives world wide are

facing sever threat of survival with fewexceptions where continued support of the

Govt. is available. If provided appropriate

and timely remedial measures, cooperativesare capable of giving better service to the

people. In the present day environment of

rising prices, Govt.s. must come forward

with policy and financial support to

consumer cooperatives for controlling price


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THANKS

ppt on consumer coops

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