Role of cooperative institute in rural marketing

Cooperatives as organisations
The first cooperatives was started in country in or around 1904 The central and state government take the lead in the formation of cooperatives at state,district and village levels,share in capial contribution and stand gaurantee for loans to them from organisation like NABARD and national cooperative development corporation(NCDC)

FORMATION OF THE ORGANISATION

IN CAPITALIST SYSTEM the organisation is established as an individual 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

The fact hat the best-suited form of organisation for rural people is cooperatives(amul)

The main intention of cooperatives is to bring persons desirous to have an economic activity together, sharing the functions in such a way that it benefits them individually as well as collectively

The people who come together are primarily called promoters, who frame by- laws and adopt them
The society is registered with the concerned state cooperative department and the society gets a legal status to run the business activity envisaged. The members constitutes the general body meet at least once a year-for future plans and objectives and devise ways and means of administration, management and control. They elect a board of directors to administer and manage he societies affair and this board elects or oppoints chief executive,secretary to carry on the daily affairs.

The concerned state governments, NABARD,& national cooperatives development(NCDC) liberally contribute towards the share capital and also extends credit facilities to the societies

There has been a tremendous progress in the field of cooperatives and in fact very efficient& profitable companies are in the cooperative sector viz indian farmers fertilisers coopertive ltd(IFFCO),krishak bharati cooperative ltd(KRIB CO),the gujarat cooperatives milk federation ltd(which exports diary products) (NAFED)the main exporting body of agricultural commodities from country

Structure of cooperatives organisations

Karnataka state cooperatives marketing federation

Taluka agricultural produce cooperative marketing socities

Village level marketing socities

The three tier structure has advantages in administration and management

The state mrktng federation open a letter of credit with banks & is responsible for final payments to suppliers All the input like cattle feed, grass slips etc required by village societies to the village societies through he district- level unions State- level organisations takes the responsibility of settlement of bills

Types of cooperative organisations

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

Cond..
Cooperative fair price shops Cooperatives weavers societies Oil-seeds growers cooperatives societies Cooperative cotton procurement,ginning and bailing societies cooperative cotton marketing societies farmers service cooperatives societies

The activities of the societies include:

Providing credit to farmers ,artisans and craftspeople Supplying agricultural inputs like fertilizers,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

Share of capital in national income

Sl no 1 2 3 4 Activity Rural network in terms of villages covered Agricultural credit disbursed Share in fertilizers distribution Share of nitrogenous fertilizers produce Propotion covered 100% 46.31% 36.60% 14.80%

5
6 7

Share in phosphoric fertilizers produce

Share in sugar production Capacity utilization in cooperative sugar factories

23.50%
54.95% 85.70%

8 9

Share in wheat procurement 27.80% Share in jute procurement 21.50%

Cond..
10
11 12

Cooperatives share of retail fair shop

Share of milk procured to total production Share of edible oil-seeds procured and edible oil sold Share of spindleage in cooperative spinning and weaving mills Share of cotton produce and marketed Share of cooperatives in handlooms Share of fish handled Village-level storage facility Share of soya bean production

28.00%
6.70% 51.00%

13

10.00%

14 15 16 17 18

67.50% 55.00% 21.00% 62.50% 7.50%

19

Proportion of salt

7.40%

Impact of cooperatives on rural marketing

The strength of cooperatives should be understood and the already existing network of distribution has to be used in coverage and extension of rural market The three tier structure of operations there is a dependable inter- linkage among the organization a different levels He apex body in the three tier structure at state level takes the responsibility of procurement distribution, marketing and collection of dues

The iniciatives to promote the cooperatives comes from the governments,the bureaucratic approach is inbuilt and there is political inference or control which makes the organisation inefficient and ineffective

With all the limitations,there are some sucessful cooperation organisation operation in the countrylike AMUL,IFFCO,KRIBHCO AND OTHERS