1. Shivam Azad
Submitted to:
Shyam Kumar
Prof. mukesh ranga MBA (BE), BATCH(2011-13)
INSTITUTE OF BUSINESS MANAGEMENT, C.
S. J. M. UNIVERSITY KANPUR

2. Objective
 To make the students aware regarding the concept of
cooperatives
 To learn about the role and functions of cooperative
marketing in India

3. Introduction
 Today 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.

4. 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

5. ROLE OF COOPERATIVES
 Transfer of technology
 Fertiliser production and distribution
 Irrigation
 Organised marketing
 Processing of agricultural produce
 Agricultural credit
 Package deal
 Equity in agricultural development

6. STRUCTURE OF COOPERATIVE
MARKETING SOCIETIES
 Base level
 Central/District level
 State level

7. TYPES OF CO-OPERATIVE
MARKETING SOCIETIES
 Single commodity cooperative marketing
societies
 Multi-commodity cooperative marketing societies
 Multi-purpose, multi-commodity cooperative
marketing societies

8. MEMBERSHIP
 Ordinary members
 Nominal members

9. Source of finance
 Share capital
 Loans
 Subsidy

10. FUNCTIONING
 Sale on commission basis
 Purchase of members produce
 Advancement of credit
 Procurement and price support purchases

11. PROGRESS
 The 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

12. 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

13.  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

14. Suggestions for
strengthening of
cooperative marketing
societies
 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

15.  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

16. Thank you